StoryCode Immersion #4 - Presentation 1

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Business Structures

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StoryCode Immersion #4 - Presentation 1

  1. 1. June 5, 2012 StoryCode Immersions #4Business Process / Transmedia Business Models
  2. 2. AGENDA• Business Structure Overview - 30 Minutes• Transmedia Business Models - 60 Minutes Lina Srivastava: www.linasrivastava.com Twitter: @lksriv• #storycode
  3. 3. OVERVIEW• Setting up your business - in order to do any significant immersive media project you’ll likely need to incorporate• Base Business Requirements - what you’ll need to function• Fiscal sponsorships - another alternative• Equity issues - investment vs. artist direct donation• Creative Compensation - tips• Tech Partnerships - tips
  4. 4. SETTING UP YOUR BUSINESS• Business structure options: • C Corporations • S Corporations • LLCs • Partnerships • Sole Proprietorships • Non-profit• Different liability/tax implications for each• Corporation.com / Legal Zoom vs. Local Lawyers
  5. 5. BUSINESS REQUIREMENTS• EIN# gets you a bank account• Trusted accountant• Legal documents to support your needs (NDAs, Releases, Work For Hire, etc...) - solid drafts of these exist for free• Insurance - research what insurance you might need then decide what level of risk you are comfortable with• Legal fees - very easy to get sucked into an expensive legal outlay before you have revenue coming in the door
  6. 6. FISCAL SPONSORSHIPS• Formal arrangement in which a 501(c)(3) charity sponsors a project that may lack exemption status• Alternative to starting your own non-profit allows you to seek grants and solicit tax-deductible donations under your sponsors exempt status• Fiscal sponsor charges a processing fee for all money that comes in• Most granting organization only grant to non profits or artists with fiscal sponsorship• ArtSpire, Fractured Atlas, fiscalsponsordirectory.org
  7. 7. EQUITY ISSUES• Selling ownership in your business to investors is tricky and expensive• Sounds a lot easier than it actually is• Artist Direct Models like Kickstarter sidestep equity issues but you still get taxed on the contributions - 1099 income• Artist Direct Models can process through a business OR an individual
  8. 8. CREATIVE COMPENSATION• Consider being transparent with your production team on budget and profits• Develop a profit sharing model to incentivize the team - easier to deal with than equity distribution• Pay a base rate then commit to a share of project profits• Implement a simple tier system
  9. 9. TECH PARTNERSHIPS• Consider a joint venture with a technology company• Consider abstracting your story to see if a tech framework can be created to support more than just your story• This becomes attractive because it can scale faster than a specific single story• If the project is innovative enough your tech partner will have more skin in the game if you are true partners
  10. 10. CONTACTmike@storycode.orgaina@storycode.orgwww.storycode.org @storycodeorg

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