ABOUT
IFFA FINANCE PRODUCTS
Like
all Internet based legal products, IFFA Finance Products are designed
for the "Active Investor" scenario. Why? Because of the
following important points to keep in mind:
-
SEC
Filings: The Securities and Exchange Commission (SEC) requires
that all passive investments be filed with the government. These
filings carry with them substantial criminal and civil penalties if
prepared incorrectly or in a misleading way. Only a licensed
entertainment securities lawyer can assist a client with these
filings.
-
State
Securities Filings: Similarly, each State in the United States
has its own version of the SEC, and requires its own filings. Once
again, these carry substantial criminal and civil penalties if
prepared incorrectly or in a misleading way.
-
Complex
Materials: Passive investment materials require more than 100
pages of documentation and filings.
-
Tax
Guidance: A passive investment requires a licensed entertainment
securities lawyer to certify that the investment qualifies for
various tax provisions and incentives. This requires a licensed
entertainment securities lawyer with extensive experience with tax
law.
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SECURITIES
LAWYERS
The
Independent Film Finance Alliance has prepared the best, most
comprehensive entertainment finance products available on the
Internet. However, if you are working with a passive investment
structure, we encourage you to contact an experienced, licensed
entertainment securities lawyer from our Resources
Page.
Pros
and Cons of hiring a licensed entertainment securities lawyer:
Pros:
-
Creative
freedom: A passive investor structure can ensure that your
investors do not interfere in the creative process. Many producers
find the creative freedom of a passive investor structure out weighs
the costs.
-
Peace-of-mind:
A licensed entertainment securities lawyer can give you the
peace-of-mind that everything has been completed correctly, and can
answer your questions about how to run and finance a passive
investment.
-
Tax
advantages: Multiple tax advantages can be seen both for the
investors as well as the producer from a passive investment. Often
tax advantages alone can sell the investment to potential passive
investors.
Cons:
-
Cost:
A typical passive investment structure prepared by a licensed
entertainment securities lawyer typically costs $10,000.00 or
more, meaning that some smaller productions may not be able fit this
quality of service into their budgets.
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