You Need to Make a Video…Now What? Part III
Once you have decided on a video production company;
- Review and sign the contract. Expect to make a partial payment at the beginning of the contract
- Have a detailed outline and timeline defining what is expected of each party and when
- Complete an IRS W9 form http://www.irs.gov/pub/irs-pdf/fw9.pdf
- Ask for a list of all workers and identify them as W2 or 1099 workers
- Issue a confidentiality agreement between your company and the production company. Also, issue separate agreements between your company and any 1099 workers on the project. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee
- Obtain a certificate of liability insurance, typically $1 – 2 Million
- Obtain proof of workers compensation on all workers including 1099 workers http://www.wcb.ny.gov/content/ebiz/icempcovsearch/icempcovsearch_overview.jsp
- Ensure that all content, images and music used on your project are fairly licensed. Identify the timeframe and geography the license covers. http://www.pdinfo.com/copyright-law/copyright-and-public-domain.php
- Compare rates and quotes. Decide if the project will be billed on an hourly or project basis. Remember even if you decide on a project rate, the production company will issue a change order for requests that are materially different from the original agreement.
Remember even a small project can be costly. At best you don’t get what you need to help your business grow at worst you wind up in expensive and time consuming disagreements. Price should not drive your decision. Choose your vendors wisely and learn to do good business.
By: Donna DelMonte
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