Your Guide to Starting a Film Production Company
Film production companies play a significant role in the entertainment industry, as they’re the ones who make, produce, and advertise films and videos. However, aside from ensuring you can do all these and distribute your content, there are also a few things you need to know when starting your own film production company. In this case, you need to plan what you need to do when starting one carefully.
With that said, continue reading to know the steps on how to start your film production company.
Step 1 – Business Planning
It would be best if you had a clear business plan to succeed in starting your film production company. After all, with a business plan, you can determine and better understand your business’s specific needs.
In this case, some of the things you can cover in your business plan are the expenses, target audience, the price you can charge your clients, and your business’s name.
Step 2 – Creating a Legal Entity
Once you have a solid plan, you also need to choose your business’s legal entity. In this case, sole proprietorship, partnership, LLC or limited liability company, and corporation are some of the most popular business structures.
However, the legal structure recommended for many production businesses is an LLC. As an LLC, you can protect yourself from being held responsible if someone files a lawsuit against your film production company. Aside from this, LLCs also offer more flexibility when it comes to business taxes. You can take help of a professional incorporation service to get this step done.
Step 3 – Registering for Taxes
Before you can start operating your business, you need to register for different state and federal taxes.
In this case, to register for taxes, you will need to get an EIN or Employer Identification Number. Fortunately, you can quickly get yours through different methods: by fax, mail, or the IRS website.
However, you should note that how your film production business will be taxed will depend on the business structure that you will pick. For instance, some LLC businesses can benefit from having the tax scheme of an S corporation. film p
Step 4 – Opening a Bank Account and Credit Card for Your Business
Overall, having a separate bank and credit card account for your business is crucial to protect your personal assets and limit your company’s liability.
After all, if you combine your personal and business bank accounts, you risk losing your possessions such as your home and car if your business gets sued. This is called “piercing your corporate veil” in business law.
Moreover, doing this can help you obtain credit cards and other finances under your business’ name. These can offer you better credit lines and interest rates if you know how to work with business credit.
Step 5 – Keeping Financial Records
Tracking your sources of income and payments is essential for you to know how your business performs financially. After all, when you have an accurate and detailed accounting of your business, it will be easier to file annual taxes.
Step 6 – Getting the Required Licenses and Permits
Not obtaining the required licenses and permits can result in having to pay penalties or, worse, your business shutting down.
Moreover, you should note that some states require specific licenses and permits to start a film production business. Therefore, it is best to drop by an SBA office to know more about the licenses and permits in your chosen state.
Step 7 – Getting Business Insurance
Similar to licenses and permits, you also need to get insurance for your business so that you can lawfully and safely operate it. Moreover, having business insurance can protect your business’s financial health by compensating for losses.
However, you should note that different types of insurance policies are made for various types of businesses. Likewise, the risks of these policies also differ.
In this case, if you are unsure of the risks that your business can have, you can get General Liability Insurance. This insurance can cover small businesses making it ideal when you are to launch your film production company.
Aside from this, Worker Compensation Insurance is another crucial insurance policy most businesses need. In fact, your state of choice will likely ask you to have Workers’ Compensation Coverage.
Step 8 – Designing Your Brand’s Logo
It would be best to show what your business stands for, and establishing a solid brand logo can do this. After all, your brand logo can help clients perceive your company positively, and having a powerful brand logo can help your business stand out from your competition.
Still, suppose you are not very familiar or confident in designing your business’ logo. In that case, there are many helpful advice and tips you can search online.
In fact, you can use these to create the perfect and unique brand for your business. Of course, aside from this, you can also get inspiration from well-known film production companies.
Step 9 – Creating and Launching Your Website
After defining your brand and creating your unique logo, what you should do next is to make a website for your business. After all, a website is necessary nowadays, especially since having a solid online presence has become crucial for a business’s success.
Therefore, you also need to create a website with an intuitive interface so that potential clients can quickly learn more about your new film production company.
Step 10 – Preparing Your Business Phone System
Lastly, keeping separate phones for your business and personal use is considered a good idea to keep your professional and personal lives separate.
Of course, aside from that, having a separate work phone can help add to your new company’s legitimacy and allow potential clients to reach you more quickly and conveniently.
Fortunately, there are numerous available services for business owners who want to have their business phone system. In this case, when choosing a service, it is best to check the features, convenience, and price of your chosen phone plan.
Finally, you understand what you need to do to start a film production company successfully. Not only do you need to be creative and technologically skillful in film and video production, but you also need to be skillful in business.