- From the earliest days of American cinema, governmental agencies have attempted to censor films.
- Hollywood developed its first censorship code in 1913; the Hayes Code was adopted in 1930.
- In 1968, after the demise of the Hays Code, Hollywood created the ratings system we know now.
In the earliest days of American cinema, there was no standards board determining what could, and could not, be shown to theatre audiences. Local authorities might, and sometimes did, ban or edit films they found to be against the public suitable. In 1859, for instance, “Dolorita in the Passion Dance” was removed from a Kinetoscope parlor in Atlantic City, NJ. In 1909, however, in response to increasing public demands for pronounce standards, the studios began submitting their films to the New-York based Board of Censorship (which would later become the National Board of Review). The Board, which was made up of private citizens, screened films for objectionable swear. The studios hoped that this form of self-censorship would both attract viewers concerned about exposing themselves, or their families, to rank material, and forestall government attempts to control the burgeoning movie industry.
The studios had reason to be concerned. In 1907, Chicago had passed an ordinance allowing the superintendent of police to ban films he considered low. Film makers challenged the ordinance, but the Illinois Supreme Court allowed it to stand. In 1908, New York’s Mayor George McClellan closed all the movie houses in his city. They opened again within a few days, but the industry realized that it was in danger of disappearing, or at least of being silenced, if it did not appease that segment of the voting public which objected to sex and violence on the screen. The Board of Censorship was the first step in that direction. Within a few months, the Board could boast that it had screened 75% of the films being exhibited in the US. Many conservative groups considered the Board’s standards to be too lax, however, and continued to demand more stringent controls.
In 1916, the industry again attempted to appease the shrill minority demanding government action. There was a new urgency to its efforts, as the United States Supreme Court had denied First Amendment protection to movies in 1915. (Because the First Amendment would not be held to apply to state law until 1931, when Near v. Minnesota confirmed the Court’s statement in Gitlow v. New York that freedom of speech is “among the fundamental personal rights and ‘liberties’ protected by the due process clause of the 14th Amendment from impairment by the states,” a ruling in the industry’s favor would only have protected it from federal action, in any case.) The studios worked out a 13-point code, prohibiting nudity, graphic violence, immoral forms of sexuality, and unfavorable portrayals of governmental or religious authorities. Unruffled the complaints continued. The studios, despite their soothing gestures, were still creating movies that offended, and certain vocal watchdog groups were still making their displeasure clear.
In 1922, in the wake of the Roscoe “Fatty” Arbuckle scandal, the Motion Pictures Producers and Distributors Association was formed, with William Hays at its head. Hays’ first act was to ban all of Arbuckle’s films. He made it clear from the beginning that the private lives of the stars were as much his concern as their on-screen exploits. For the next eight years, Hays fought an uphill battle against depravity in cinema. In 1930, though, the industry adopted the Production Code, known as the Hays Code, or simply the Code. In theory, every film made in the U.S. had to be approved by the Production Code Association. However, America was deep in the thrall of the Great Depression, and the studios feared bankruptcy if they showed only the safe, moral films which the Code would permit. Until 1934, then, the studios flouted the Code at every opportunity. Prostitution, crime, and even homosexuality found artistic outlet in the American cinema. In 1934, though, the economy improved, Congress grew more vocal in its threats to impose federal legislation on Hollywood, and the Catholic Legion of Decency threatened to boycott Hollywood films. Joseph Breen, a former journalist, took over the administration of the Code.
Breen was a devout Catholic who was unwilling to compromise his morals or the provisions of the Code, but who was always willing to work with the studios to see that their films could be exhibited. He lost some battles early in his administration – three of Mae West’s comedies got past him before he gathered enough clout to ban her from Hollywood completely – but that soon changed. He scored one of his first victories against “Tarzan and His Mate.” In the original cut of that film, Maureen O’Hara’s Jane is skimpily attired, and her body double appears completely nude in the swimming sequence. MGM, the studio responsible for the film, appealed, but Breen’s decision was upheld. MGM made the changes he had requested, cutting or obscuring the nudity, and redesigned Jane’s costumes in the ensuing Tarzan films. For three decades, Hollywood largely abided by the Code, although the studios did not always submit gracefully. And then, in 1966, Warner Brothers released “Who’s Terrified of Virginia Woolf? ” without the Production Office’s seal of approval. Jack Valenti, head of the Motion Pictures Production Association (MPAA), had been unable to broker a compromise over the artfully nasty portrayal of a disintegrating marriage. Just a few months later, MGM released “Blow Up,” which contained nudity and drug exercise, without the seal. The Code was, effectively, tedious. The MPAA called a series of meetings with the National Organization of Theatre Owners (NATO), the Screen Actors Guild (SAG), and other industry organizations, and in 1968, a new form of self-censorship was unveiled. In place of the Code, which banned all films that failed to meet its standards, there was to be a ratings system, which would label films according to their content. The unusual system had unbiased four categories (X – no one under 18 admitted, R – no one under 18 without an adult, PG – parental guidance suggested and G – general audience), in contrast to today’s five-tier system (NC-17 has now replaced X, which was co-opted by pornographers, whose films are not usually submitted to the MPAA, and PG-13 has supplemented the PG rating, to expose films which do not merit an R rating, but which may smooth be unsuitable for young children), but was essentially the same system that is used today.
Critics of the current system say that it is too subjective to be useful. The MPAA has published guidelines to the ratings, but refuses to adopt a standardized means for determining what films will receive which ratings. The government continues to threaten statutory restraints on film content, although First Amendment considerations should invalidate any federal censorship. And Hollywood goes on adopting content restrictions, which it then cheerfully ignores. In the movie business, this is business as usual.
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Filed under Stock Bankruptcy by on Sep 23rd, 2010. Comment. 
- The members of an LLC are not personally liable for the obligations of the LLC.
- LLCs are constituted according to dwelling law and not federal law.
- Members who are individuals include earnings from the LLC on their individual tax returns.
What is an LLC?
A Limited Liability Company (LLC) is a business structure that combines aspects of a corporation and a partnership. The owners are called members and not partners or shareholders. The number of members is normally not subject to any limit, and the members can be individuals, corporations, or other limited liability companies.
Advantages
One of the main advantages of an LLC is that it is treated as a separate legal entity, similar to a corporation, and the members are not personally liable for the company’s debts or obligations. There are two exceptions to this limited liability: when a member grants a personal guaranty for an obligation of the LLC, and when a court determines that the company is actually an alter ego of the owners themselves, in which case the members could be held personally liable.
In general, there are no restrictions on the persons or entities that can be members of an LLC. It may be necessary to obtain written consent from the members prior to admitting new owners, unless the articles of organization (see below) provide otherwise.
The majority of states and the Internal Revenue Service (IRS) recognize an LLC with a single member as a legitimate business structure.
LLCs generally require fewer formalities than a regular corporation or an S corporation. For example, the shareholders’ and directors’ meetings that are required for corporations are normally not required for LLCs.
There is flexibility in how LLCs are managed and how earnings are distributed. All the income and losses of an LLC pass through the company to the individual members. This avoids the double taxation of having to pay income tax on the company’s earnings and then again having to pay individual income tax on the company’s distributions. The LLC may have to file a tax return, but the individual owners include the company’s earnings in their individual tax returns and pay tax on them.
Disadvantages
A corporation can have an indefinite life, but LLCs normally have a fixed duration. Generally, the articles of organization must establish the date on which an LLC will end. In the absence of a provision to the contrary in the articles of organization or in the operating agreement, an LLC will also be dissolved when one of the members dies, retires, resigns, is expelled, or declares bankruptcy, unless within 90 days a majority of the other members vote to continue the LLC.
Forming and operating an LLC require greater formalities than a sole proprietorship or a partnership.
Forming an LLC
An LLC is formed according to state law and not according to federal law. All 50 states in the U.S. now allow the formation of LLCs.
There are two main actions that need to be taken to form an LLC: articles of organization and an operating agreement.
Articles of Organization:
The articles of organization have to be drafted and presented to the corresponding Secretary of State, paying the required charges. These articles will have to be in the form required by the Secretary of Region. Among the information normally required is the date on which the LLC will be dissolved and a statement regarding the administration of the LLC, for example whether the LLC will be managed by one administrator, more than one, or whether the members themselves will be in charge of the administration.
Operating Agreement:
Although in many states it is not an obligation, it is advisable to have an operating agreement for the LLC. This agreement can be made before or after the presentation of the articles of organization. This agreement can establish the way in which earnings will be distributed and can interpret the owners, how the ownership can change, and the responsibilities of the members.
You should contact the office of the Secretary of State in the state where you are planning to site up an LLC to accumulate out the specific requirements for formation.
Registered Agent
Almost all the states require that a registered agent be named for the LLC. In the majority of cases, this agent can be any person who has a domicile in the state in which the LLC is constituted.
The registered agent acts as the LLC’s representative for purposes of accepting the serving of process, or notification of legal action; that is, for acknowledging any right proceeding, or receiving notification of any legal or official communication from the government that is presented to the company.
Federal Income Tax
LLCs are established according to the laws of each space, and the federal government has no classification for LLCs. Therefore, for purposes of the U.S. federal income tax, an LLC must file a return as a corporation, a partnership or a sole proprietorship.
LLCs with a Single Member
In general, when an LLC has only one member, the fact that it is an LLC is ignored for purposes of filing a federal income tax return, but that does not change the fact that legally it continues to be an LLC.
When the only member is an individual person, the LLC’s income and expenses are reported on that person’s individual income tax return on Form 1040, Schedule C (Profit or Loss from Business), Schedule E (Supplemental Income and Loss), or Schedule F (Profit or Loss from Farming), as applicable.
When the only member is a corporation, the income and expenses of the LLC are included in the corporation’s income tax return on Form 1120 (for a normal corporation) or Form 1120S (for an S corporation). In the case of a normal corporation (1120), the income and expenses are not transferred to the shareholders. For an S corporation (1120S), each owner or shareholder declares his or her fragment of the earnings, credits and deductions declared on Schedule K-1 (Beget 1120S).
LLCs with More than One Member
LLCs with more than one member must file a tax return as a partnership, using Form 1065. Then, the members include their portions of the earnings, credits, and deductions from the LLC, as reported on Schedule K-1 (Form 1065), on their individual income tax returns.
Form 8832
In order to choose the intention an LLC will be treated for tax purposes, you can file Form 8832, Entity Classification Election. If this form is not filed, the LLC will be treated as indicated above. If you do not want to change this treatment, there is no need to file Form 8832.
An LLC with only one member can elect to be treated as an association subject to tax as a corporation, instead of a sole proprietorship, and an LLC with two or more members can elect to be treated as an association subject to tax as a corporation or a partnership.
Form 8832 is also faded when you want to subsequently change the way the LLC is considered for federal income tax purposes.
Self-Employment Tax
When a business formed as an LLC has net earnings of over $400, it may be necessary to file Schedule SE, Self-Employment Tax, which is the equivalent of the social security and Medicare taxes.
Generally, when an LLC has only one member, who reports the LLC’s earnings on Schedule C or F of his or her individual income tax return (Form 1040), Schedule SE will also have to be filed and the self-employment tax paid.
When an LLC files a tax return as a partnership (Form 1065), the members pay the tax on self-employment income (Schedule SE) on their fraction of the partnership (LLC) earnings. But if there are members who are the equivalent of limited partners, they would pay this tax only if the LLC pays them for their services.
When the LLC Has Employees
When the LLC has hired employees, it needs to withhold, report, and deposit the corresponding payroll taxes: the social security and Medicare taxes, federal income tax, and the state or local income taxes that may apply, and pay the employer’s portion of the social security and Medicare taxes.
Develop 941, Employer’s Quarterly Federal Tax Return, needs to be filed (Manufacture 943 in the case of a farming business). After the close of the year, W-2 forms have to be prepared and sent to the employees and to the IRS, reporting the compensation paid for the year and the taxes withheld. Also, Form 940 or 940-EZ, Employer’s Annual Federal Unemployment (FUTA)Tax Return, must be filed when the LLC paid salaries of $1,500 or more in any quarter during the calendar year, or had one or more employees working at least part of a day in 20 different weeks during the year.
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Filed under llc bankruptcy by on Sep 29th, 2010. Comment.
Your company may have filed for bankruptcy, and you’re wondering, how does declaring bankruptcy affect retirement funds? Declaring bankruptcy can affect retirement funds, depending on if the company is filing to reorganize finances, or paying off creditors.
As an employee in a bankruptcy situation, the two most important issues concerning your retirement funds are being able to collect retirement funds, and making sure your retirement funds are gracious from the bankruptcy.
Your retirement funds are generally protected in a bankruptcy in the following ways:
1. Retirement funds are kept separate from employer’s business assets. Under the Employee Retirement Income Security Act (ERISA), retirement funds must be sufficiently funded, and either placed in a trust, or invested in an insurance contract.
2. Plan administrators cannot mismanage or abuse retirement funds. Confirm with plan administrators that retirement funds that have been deducted from your pay have been forwarded to either the company trust account, or insurance contract.
3. Your retirement funds may be insured by the Federal Government. A defined benefit plan through your employer is protected by the Pension Benefit Guaranty Corporation. (PBGC). Terminating the thought because of bankruptcy, and inadequate plan funding, will result in the PBGC taking responsibility for the retirement plan, and paying benefits up to a maximum guaranteed amount. Payments for plans that an employee contributes to, such as a 401(k), are not insured by the PBGC.
4.If plan is terminated, funds must be 100% vested. Your retirement thought owes you all retirement benefits that you have accumulated. Payment of retirement funds under ERISA guidelines does not have to take residence until you reach normal retirement age, which is usually age 65, but check your plan to glance if you can receive your retirement funds at an earlier age. Some plans require employees to be separated from employment for a sure length of time.
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Filed under Partnership Bankruptcy by on Sep 30th, 2010. Comment.