Posted by Michael Raben at 184.108.40.206 on March 29, 2001 at 12:21:12:
In Reply to: Question for Vincent regarding companies posted by Ezekial24 on March 29, 2001 at 06:54:04:
: I read in the summaries how a new and different company had to be created each time for each movie but can you expound upon this at all?
Here's the simple break-down: When a film production begins, the powers-that-be form a temporary corporation as a legal defense against possible lawsuits and various and sundry legal problems that could conceivably occur. This temporary company protects the long-term company (in this case View Askew) and its assets from being attacked if a lawsuit were to happen.
: I'd like to know why with Quentin Tarantino his "A Band Apart" company was used a couple of times for a couple of his movies, the same with "Los Hooligans" Rodriguez's comany. Did Kevin & Co. do this for monetary reasons - ie. It is cheaper to create a new little company rather than use an existing one for the next feature?
Legal reasons. ALWAYS legal reasons.
: How much does creating this little company cost?
Incorporating under California and Federal law runs a few thousand dollars plus lawyers fees. It varies from state to state; as a comparison, Michigan is relatively cheap (about $65 plus legal fees).
: I simply do not understand how Tarantino & Rodriguez can do it but you guys can't, it seems your all pretty much in the same boat.
This has been standard practice throughout the industry for years. EVERY production company does it. Whatever information you think you've accumulated is either wrong or incomplete. As an aside, the prior sentence is not meant to be taken offensively; it's just information.
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