[Bruce Bennett]

Hi Roy,

Big area for discussion and interpretation here. This relates to my 3rd rule for running my business: tax everything.

Same-state:
None of my “same state” subcontractors tax me (goods or services) since I’m reselling their goods/services. In Wisconsin, I give them a “WISCONSIN SALES AND USE TAX EXEMPTION CERTIFICATE” (WI S-211 Reseller Form). There is an area on the form that says “PROPOSED EXEMPT USE” and below that “Resale (Enter purchaser’s seller’s permit or use tax certificate number) where I enter my WI Seller’s ID number.”

Out-of-state:
Just like you do not charge sales tax for your out-of-state clients, your out-of-state vendors should not charge you sales tax.

Final delivery:
If my same-state client is “for profit” I tax EVERTHING – goods and services. You can separate goods from services and charge taxes on just the goods, but the government may interpret what you think is a “service” as a “good” and you may have to pay back taxes if you ever go through an audit.
For example, I may think that when I hire a Videographer, he/she is performing a service (and thus not taxable to my client). But, the government may see it as a “good” since he/she delivered the final results on tape/disc/computer file and that is a good and has a value. The government likes to define a “good” as something that has “value.” Another example is transcription services. Transcribing is a service, but the Microsoft Word file that you get in the end is a thing/good and thus has value.

Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

[Ryan Mast] “Bruce and Bill, what is required to show proof of insurance? Do you send them the whole policy (pages and pages)? Is there a statement you get from your provider/broker? Does it suffice to get a PDF of it and email it, or are you always faxing papers?”

Your insurance provider can provide you with your Proof of Insurance. It’s a very common practice. It’s not too big of a document, so I usually email it as a PDF (snail mail paper scanned to PDF for best clarity).

Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

Ryan,

With all due respect, if think you should be more concerned with your own coverage versus worrying so much about every one’s insurance policies/coverage. If you had your own general liability policy, this wouldn’t be so much of an issue.

Since you did not fill out your COW profile, I have no idea how you’re doing business (DBA, LLC, inc.) but I’m guessing you’re biz is a DBA. If this is the case, I think the vast majority of seasoned professionals on this site will agree with me in that you should get some insurance to cover your actions, your equipment and your rented equipment. DBA + major accident = you get sued and you lose all your personal property.

I really don’t get why some people in this biz do not get general liability insurance. It irritates me very much. It is a very small annual cost when compared to many other operating costs (salaries, taxes, health insurance, more taxes, etc.). Two of my best clients simply do not hire companies without proof of insurance. When I sub out out-of-state location shoots, my hired Videographer must have insurance or I don’t hire him/her. I almost always get the certificate emailed/faxed before the deal is sealed. If the Videographer subs out other crew members who do not have insurance (grip, audio tech, etc.) then I request that all invoice via the Videographer so that Videographer is “more responsible” for them killing the CEO. I say “more responsible” because when any injury related accident happens, typically EVERYBODY gets sued.

Thank goodness there were no accidents on your shoot.

Good luck,
Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

Hi Jo,

I find it hard to believe that a business can qualify as a NFP without being incorporated (LLC, inc., ltd, etc.). You may have to without a choice. I would find out first before spending money for a TM.

Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

Hi Yoni,

My opinions…

I’m not aware of any fully paid editors receiving residuals for projects. My experience is that they are vastly “work for hire” team members. I wonder why he is. This would be a “work for hire” and you would not have any copyright ownership. (This is a big discussion topic on this board. I believe that “the act” of being hired constitutes a “work for hire agreement” even without a signed document. See http://www.copyright.gov).

I would suggest splitting up the residuals almost evenly to all major production team members (i.e., Executive Producer, Producer, Writer, Director, Cinematographer/Videographer, Editor). (If your Co-Editor wants some, then I think that should come out of your piece of the cake). I say “almost evenly” because the Executive Producer is the one who will probably take on the most risk and will also be the one who takes on the “final responsibility” of the project.

Also remember, if you become a partner on the project (versus being a hire) you and your Co-Editor become project owners and thus become a targets for any legal issues (and can be sued along with the rest of them if things aren’t done correctly).

Good luck,
Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

I know a couple of freelancers who occasionally get work via http://www.mandy.com. It’s free to sign up.

Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

[Brendan Coots] “I would also add that, under your model, clients will more than likely want to sit in on sessions. You will want to have a room in your house that is your dedicated edit suite, and deck it out to be comfortable for clients and feel reasonably professional.”

Brendan has a good point here. I use both scenerios for my subcontractors (set up for clients and not set up for clients). Those who are not set-up for me or my clients know that they need to provide me with “more than usual” approvals via DVD or encoded ftp’d files. In my opinion, these “extra steps” should be obsorbed by YOU and not charged in addtion to your normal rates (i.e, “Why should I pay for you not being set up for me to sit in the hot seat?”).

Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

Hi Brendan,

My one-man shop is set up as an LLC with S-Corp classification. My accountant says that having a S-Corp classification allows me to take my dividends payments without having to pay soo much Social Security on them. My regular salary payments get taxed as usual.

Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

You could do a search for “Super Bowl TV commercials.” Most are going to have been shot on 35mm film and then transfered to HD for airing. Some will have been shot, edited and aired on HD.

Bruce

Bruce Bennett
Bennett Marketing & Media Production, LLC

[Bruce Bennett]

I, Bruce R. Bennett, under no duress whatsoever, solemnly swear, that I on this date of March 15. 2008 at 12:07 AM, have never witnessed anything so bizarre in my professional career. Furthermoe, I promise to God my savior, that I will never produce, write or create, in any way whatsoever, any magnetic, film or the like, such a project.

Bruce Bennett
Bennett Marketing & Media Production, LLC