In order to qualify for a Tax Incentive, I have to have a Production Company solely for the purpose of the film I require funding for i.e. Cant use the same named Company for any other Film Project. Now, the name im using for the Company means a lot to me, and I would like to use it for all Projects im involved in ....Question is, is it possible to have different named Production Companies for different Projects, but have them working under one Umbrella Production Company???
Production Company Question
- Thread starter derek smith
- Start date
Under US law, yes, you can have any number of companies under an umbrella corporation. The practice is mostly legal "isolation," so if something happens and there is a legal action against the project the parent company is not held liable.
It's a common practice for filmmaking entities to create an LLC or other type of incorporation for each project, using the name of the film as the subsidiary company name. So you could have Ferd Berfel Productions as the parent company of My First Bad Movie LLC, My Second Bad Movie LLC, My Third Not Too Shabby Movie LLC, etc.
I have no idea what the legalities are in the UK; you should consult with an entertainment law professional.
It's a common practice for filmmaking entities to create an LLC or other type of incorporation for each project, using the name of the film as the subsidiary company name. So you could have Ferd Berfel Productions as the parent company of My First Bad Movie LLC, My Second Bad Movie LLC, My Third Not Too Shabby Movie LLC, etc.
I have no idea what the legalities are in the UK; you should consult with an entertainment law professional.
Thanks for the response...I've got a meeting with an Entertainment Solicitor (that's UK / Ireland speak for Lawyer) in 2weeks, so hoping to see what my options are, as my Screenplay is ready to go
Attorneys will tell you you should do as AA pointed out here -- it prevents one legally derailed project from sucking money out of your other projects, completed or not.
This is why an "umbrella organization" isn't really wise.
Good luck.
In your location, English (and Welsh) laws apply and the following solutions would apply:
1. Solution 1. Open a Ltd Company as a vehicle for all projects and create other Ltd companies as and when necessary which can then 'buy out' each project. This will minimise the number of companies you have active at any one point and reduce the risk of being fined for not filing accounts, VAT returns etc... at appropriate points as well as reducing bureaucratic hassle.
2. Solution 2. Open a Ltd company as an umbrella company: This has certain tax advantages if you have profitable and unprofitable projects. You can move money around depending on how this is structured and maximise revenues. The downside is you will need to pay a lot of money to advisers and certain investors will not want to be involved if this structure is in place. This structure can be seen to be extremely off-putting to potential investors.
3. Open lots of Ltd companies for every project. The hassle with this is enormous if you have 10 or 20 possible projects 'on the go' and you will need to be extremely organised to stop yourself falling foul of fines etc... However, this is the most logical option for investors and the one most easily trusted.
My strong suggestion would be number 3 but when I personally ran a company, I used solution 1. The reason is solution 3 is significantly more investor friendly.
1. Solution 1. Open a Ltd Company as a vehicle for all projects and create other Ltd companies as and when necessary which can then 'buy out' each project. This will minimise the number of companies you have active at any one point and reduce the risk of being fined for not filing accounts, VAT returns etc... at appropriate points as well as reducing bureaucratic hassle.
2. Solution 2. Open a Ltd company as an umbrella company: This has certain tax advantages if you have profitable and unprofitable projects. You can move money around depending on how this is structured and maximise revenues. The downside is you will need to pay a lot of money to advisers and certain investors will not want to be involved if this structure is in place. This structure can be seen to be extremely off-putting to potential investors.
3. Open lots of Ltd companies for every project. The hassle with this is enormous if you have 10 or 20 possible projects 'on the go' and you will need to be extremely organised to stop yourself falling foul of fines etc... However, this is the most logical option for investors and the one most easily trusted.
My strong suggestion would be number 3 but when I personally ran a company, I used solution 1. The reason is solution 3 is significantly more investor friendly.
For Solution 3, do you mean open an Independent Production Company for EVERY New Project,
llc's can do business as any number of names, perhaps that's enough separation.. Legally though there's no liability difference between them, nor really any accounting difference since the dba's are just psuedonyms for the parent company. *shrug*
Ask a tax lawyer
Ask a tax lawyer
llc's can do business as any number of names, perhaps that's enough separation.. Legally though there's no liability difference between them, nor really any accounting difference since the dba's are just psuedonyms for the parent company. *shrug*
Ask a tax lawyer
This is England and laws are completely different.
Also, in the UK I would use an accountant for this type of tax advice, not a tax lawyer.