If I have never charged anyone for any work I've ever done, i.e. family and friends, then I start as a business, do I need releases for any clips that I might want to include in a demo reel on a web site? My thinking: since I charged no one for what I've shot, no one could argue that I was profiting from their image, even though the demos may (and hopefully will) lead to subsequent paid work.

Different scenario: Does it make a difference if I was 3rd camera and the releases were obtained by the 1st camera? Do the releases held by the 1st camera apply to my use of what I shot? Does it make a difference that I didn't get paid for the work but the 1st camera did?

If I want to start as a business, I think I've budgetted too little $$ for legal advice; that amount was straight from my "hip pocket." What is a ballpark amount that I should have budgetted? What can I expect to be charged for legal advice? (I know I should have already contacted an attorney, but I'm afraid they'd charge me just to provide an estimate). ;)

IMO you need releases - doesn't matter if you made the clips for fun or profit. ..
the producer/company/person that got the releases has the rights to material and sometimes it is for any use and other times it's for restrictive use ... 1st or 10th camera doesn't have permission unless they are listed on release or the Producer gives you permission ( provided in release producer can assign rights to others & it's fits your use ..IE: TV or web ) ...

i've shot many commercials. the producer get releases from actors. i canNOT put up any of those commercials on a web site without permission of the ad agency & client ..and i can tell you that since the web has been around NOT one has ever given permission for me to post on the web ( public site ) ..

features/shorts - need producer/owner of the material permission to post on website that is public .... have never been denied to post trailers or short scenes on web - they usually ask for you to limit it to X minutes ..

i've never run across a problem with commercials or trailers or scenes on a sample reel that you pass around to clients ...

it just might be your neighbors , family , friends don't want to be on the web.
now more then likely they would love to help you out - so just ask em for the OK ...

i post home videos on web and have no releases ...i did have one person send a stop using letter or else ...

So, for a demo reel that I would show to clients, say using a portable DVD player, I'm probably ok. But I'm not ok if putting that on the web.

Helps a lot.

Thanks.