Hi,
this i a question that many filmmakers have in mind... I know somewhere in this forum there is already
the right answer for this, but so far I could not find it.
How can a young filmmaker open a small production company to produce and present the movie to festivals? In order to keep the rights of the movie and deduct expenses?
A production company is no different than any company. A
manufacturing company buys or rents a building and makes a
product. An auto repair company buys or rents a building and
fixes cars. A "production company" make movies. And they are all
started in the same way.
There is a "small business association" in most cities - they can
help you with legal matters. Typically a business is an LLC, but
many people start their business as a Sole Proprietorship, a
General Partnership or a Joint Venture. The short version: You
will fill out the paperwork, make the required legal declarations
and get to work.
You need to know clearly what your goals are. Do you just want to
put a name on the credits of your movie? Do you need to open a
bank account using the company name? Do you have partners? Will
you work out of you home? Will you open an office and hire
employees? Have you though about the legal liability of starting
a business?
The creation is easy. Running it take a lot of work.
A Sole Proprietorship:
A sole proprietorship is the simplest form of business where one
individual conducts the business. The business owner is
personally liable for all the obligations of the business.
A General Partnership:
A General Partnership is an association of two or more persons
doing business. All partners are personally liable for the
obligations of the partnership.
Joint Venture:
A Joint Venture is two or more entities under a contractual
agreement to conduct a specific business enterprise with both
parties sharing equal responsibility. The venture is usually for
one specific project.
A Business Trust:
A Business Trust is a trust created for the primary purpose of
operating or engaging in a business. It must have a business
purpose and actually function as a business.
A Limited Partnership:
A Limited Partnership is a business arrangement operated by
general partners with unlimited personal liability and funded by
limited or silent partners who are partially liable.
Can you open a temporary production company for "one movie" production?
Yes. You can create a Limited Liability Company:
A Limited Liability Company (LLC) is a legal entity that has the
option of being taxed like a partnership, but shields personal
assets from business debt like a corporation. Filing at the state
level is required.