Question: One of your clients a motion picture producer has asked
One of your clients, a motion picture producer, has asked your firm to invest $2 million in her latest motion picture production, a movie based on the life of 1960s singing star Janis Joplin. In return for the contribution, your firm will receive a 10 percent interest in the limited partnership that will produce and own the movie. The movie is expected to be in preproduction for four years as rights to the subject matter, script, actors, and director are obtained. Production is expected to take three months, and postproduction editing and promotion will last another six months, after which the movie will be released into theaters domestically. Three months after its theater release, the movie will be released on pay-per-view and premium television channels like HBO. Six months after the theatrical release, the movie will be sold on DVD. As a consequence, the production company is not expected to make a profit for at least five years. Your client wants to form the production company as a limited partnership. Do you believe that the limited partnership is the right business form? What business form may be better? How would you set up that business form to make sure your firm's interests are best protected?
Answer to relevant QuestionsYou and nine of your wealthy friends decide to purchase a local minor league baseball team. The purchase price is $15 million, 60 percent of which you contribute to the business as capital. Your nine friends will contribute ...Karl Allen and Renee Galzo choose to be the sole owners and managers of a financial services business, Allen-Galzo & Associates LLP. Allen holds the copyright to investment analysis software that he developed three years ...Roberto Frientas and Herman Graham formed an IT consulting business, which they organized as a limited liability partnership, Accent Pointe LLP. For the most part, each LLP client was assigned either to Frientas or Graham, ...Labrum & Doak, LLP, was a law partnership that began in 1904 in Pennsylvania. John Seehousen, Jonathan Herbst, and James Hilly were partners of Labrum & Doak. They withdrew from the partnership in 1993, 1995, and 1997. They ...Judith Carpenter was an experienced businesswoman and served on the board of directors of a bank. In 1984, Carpenter invested in Briargate Homes, a business that owned several condominiums. She believed that Briargate was a ...
Post your question