A production company can give you a lot of freedom in the film industry.You will be able to produce films under your own company because of the constraints provided by outside businesses.Many young filmmakers start a company at some point, but the process of starting a production company is not easy.With a little time and effort, you can start your own production company.
Step 1: Decide what kind of work you want to do.
A film production company has a vision.This is the kind of work that you can work together on.Different types of films are the focus of film production companies.Before moving forward, carve out your company's niche.Do you want to make low budget films?Do you want to make films that will make money?Will you focus on shorts or feature length films?Do you want to do pilots for television programs or do you prefer to work with movies?You should have an idea of what kind of content you want to produce.Will your films be funny?Will they be action films?Dramas?Mysteries?The kind of work you produce contributes to your company's identity, which you will use to brand yourself as you move forward.Before moving forward, make sure you have a solid identity.
Step 2: Decide on a name.
Before you start your company, you need to decide on a name.Refer to your company as something as you begin to draft business documents.Your production company's name reflects your personal brand, so you'll need to pick something that reflects the kind of art you want to produce.There are a variety of reasons why filmmakers choose names for production companies.The company was named after Spielberg's first film.Scott decided to use part of his name to change his production company to Scott Free.Pick a name that is fun, creative, and somewhat unique.You should think about the kind of films you want to make.A silly sounding production company name is expected if you plan on making mostly comedy films.If you're planning on making more serious, artistic films, choose a name that sounds more dignified.If you are starting a production company with friends, make sure you all agree on the name.Creative differences can affect work relations.To avoid hurt feelings from the start, you should be able to agree on something basic like your company's name.
Step 3: Pick your company type.
There are several different structures for companies.Before you file any documents about your production company, you need to settle on a company type.It's a good idea toFamiliarize yourself with different types of businesses.Sole proprietorships are the most common type of business for people just starting out.The business is run by you, the individual, and there is no legal separation between you and the business.This type of business is not recommended for a production company.There are a lot of accidents on set.As the sole proprietor of your production company, you would be responsible for accidents and injuries that occur during the making of a movie.A limited liability company is a better structure for a production company.A hybrid business structure that is flexible about taxes and legal liability allows for partnerships.Most production companies are limited liability companies.You can have more than one owner of an LLC.The structure of a corporation would not be ideal for a young production company.Cooperatives are only operated for the benefit of the owners, and a corporate structure may be too daunting for a young filmmaker.It's probably the best option for an early production company.
Step 4: You should draft a business plan.
Film production companies rely on a business plan to function.The blueprints of your company's structure are what your business plan is about.It shows how your company functions, ethics, and so on.You should draft a business plan before you start filing paperwork.Your company's goals and ethics should be outlined in a mission statement.The names of all the production company's founders should be listed in your mission statement.You should include how you plan to make money from your films, as well as any startup funds you're putting into the business.A production company needs a business plan.Someone with a law degree may be able to help you with your statement if you don't have a background in business or law.It's a good idea to include at least one co-founder of your production company with some knowledge of business.When you finish your business plan, it's a good idea to have a business lawyer look over it.This can help you make sure your plan is legal.As you continue to form your production company, you may have to change some aspects of your plan.Your business plan will be constantly changed until your company is formed.
Step 5: The basic staff should be established.
Four basic staff members are needed for a production company.You'll need a head of sales, as well as heads of development, production, and post-production.The founding members of your organization should be willing to fill at least a couple of these roles.The head of development makes decisions.You should be willing to be the head of development.The person who decides the kind of script you produce is the one who establishes your company brand.The head of production makes sure the films are created on time.Someone with a background in film production should be this person.Technical editing is overseen by the head of post-production.Someone with an extensive background in film editing is needed.The head of sales and distribution is supposed to help the film make money.Someone with a strong background in marketing and advertising is needed for this role.
Step 6: If necessary, apply for a business loan.
A certain amount of money is needed for equipment and other expenses when starting a film production company.Many people put in their own money to fund these costs.This may not be enough to get your business off the ground.Some of the early costs for your production company may need to be fronted by a business loan.You need a business plan to get a loan.You can use online outlets to run a credit check on you and your partners.You have to fill out an application form detailing the reasons you're applying for a loan as well as some information on your personal background.A variety of legal documents, such as your own income tax reports, will have to be presented.A resume with an application for a business loan is what some banks want.Your resume should highlight your experience in business management.A good resume can increase your chances of getting a loan.Including a co-founder's resume in your documents can increase your chances of being accepted.You may have to give something up as security for the bank.Depending on your personal background and the bank where you're applying, the type of collateral varies a lot.If you have good credit and a good business plan, you may be able to get a loan.
Step 7: An operating agreement needs to be filed.
An operating agreement is the first step in forming a production company.The basic structure of your business is laid out in this agreement.You will register your business name with the state.Check with your local courthouse to find out where your register is different.The basic structure of your business should be laid out in your operating agreement.What is the hierarchy of your company?Who is in charge?What are individual responsibilities?How money is distributed should be included.Who gets paid if one of your films makes a profit?What is the distribution of payment?Do you deposit funds directly into contributors' accounts or do you issue checks?The operating agreement is a legal document.Before having the agreement looked over by a lawyer, you should not file it.It's best to pay a lawyer to write the document for you.A lawyer with experience working with film production companies is a good idea.The legality of making movies and TV shows is unique.Your lawyer's fees can be paid with some of the start-up money you gather from loans, personal investments, and other funding.
Step 8: You can choose a registered agent.
A registered agent is required in order to legally create a company.A third party who accepts legal and tax documents for your company is a registered agent.This is to make sure that your company doesn't dodge taxes, lawsuits, or other documents.Every state requires you to have a registered agent.You should choose someone you trust to be your registered agent.You can act as your own registered agent in some states, but this puts a lot of pressure on you and may make your business look less professional.You see someone as responsible if you choose them.An old colleague from business school who lives in your state may be a good registered agent.You have to choose a registered agent in most states.It's recommended you do it even if your state doesn't require it.You could fall out of good standing with your state if you don't have a registered agent.Business documents could be rejected upon filing.
Step 9: The articles of organization should be filed.
The Articles of Organization are not easy to read.Basic information about the members of your company is provided on the form.The location of your business as well as names and addresses are required.You can list your agent here.Where and how you file varies by state.You can ask at a local courthouse.There may be filing fees in some states.Before you leave to file your paperwork, make sure you know the fees.
Step 10: You can get employee identification numbers.
All of you will need an employee identification number from the IRS.You can be identified for tax purposes.When filing your other documents, ask at the courthouse how you apply.The process is easy.You should fill out a form with basic information, like your name, social security number, and so on.
Step 11: You should consult an attorney.
You should consult a business attorney when your business becomes official.As you begin to hire staff and plan for films, you will want a legal professional on your side to make sure you follow the rules.Ask film peers for attorney recommendations or look for an attorney online.You should check reviews to make sure the attorney you hire has a good reputation.You should ask your attorney about hiring staff.A qualified attorney is needed to walk you through the process of hiring a person.In the early years of your company, you don't want to face fines or legal repercussions for improper hiring practices.There are a variety of copyright issues involved in film.He or she can show you how to protect your intellectual property.When hiring an attorney, keep your budget in mind.Legal fees can get expensive.Make sure you choose an attorney that is within your company's budget.
Step 12: A CPA is a public accountant.
An accountant is needed if you're running a business.You can use a certified public account to manage your finances.Unless someone on your team has experience in financing, don't do your own accounting.You don't want to accidentally file something wrong in business accounting.Pick one from a variety of accountants.If you hire an accountant, you should read reviews online to make sure they have a good reputation.There is a background in entertainment financing.If you want to give everyone involved in a film a fair cut of any potential profit you make, you'll need an accountant who can help.
Step 13: The staff is necessary.
You will need a staff if you want to make movies.Depending on the type of film you're making, the size of your staff can vary.Independent films may be able to get by with a small staff.If you're not producing your own script, you may need to hire writers.You will need a technical crew to help set up and deal with equipment problems.You'll need to hire film editors if you're not doing your own editing.The importance of actors and actresses is obvious.You will have to host and hire talent.You will need people to help with things like make-up, costume, script supervision, and so on.
Step 14: You can open a company account.
You will need to open a company bank account after your company is legally created.It's important that you have a bank account for your company because funds for movies and other projects can be lost.You can apply for a company bank account at the bank.The process should be easy if your production company is legal.
Step 15: Start a website.
You need to be online in order to get people interested in your company.A production company's name should be close to your domain name.A web designer can create a professional looking website for you.You can ask someone with experience in web design to design your site if you have someone on your team.You can also market your film on social media.In order to generate public interests, you should have a Facebook and Twitter page for your production company.
Step 16: Consider making shorts.
Initially producing short films is a good idea when you're starting your film production company.Short films are usually 10 to 15 minutes in length and are cheaper to produce.There is a short film category at many big film festivals.You can potentially get noticed by an agent if your film does well at a festival.For bigger projects, your production company may be able to get funding.
Step 17: The internet can be used to your advantage.
Young filmmakers can use the internet for new opportunities.If you have a following on YouTube, you may be able to get your content picked up for television.You should include your production company name at the end of your videos.You can help people remember your company by doing this.Content must be copyrighted before it is posted online.This will make it harder for your content to be stolen.
Step 18: You can apply to the festivals.
One of the best ways to get noticed is to apply for festivals.South by Southwest is one of the big film festivals.Smaller festivals in your area may be less competitive.Applications can vary by festival.You can usually send in a copy of your film with a submission fee.Prepare yourself for rejection.You will likely get more rejections than acceptances in the film world.