Company Required?
- Thread starter OmegaMB
- Start date
Welcome!
It depends on what you want to do with the movie once it is done. Are we talking about a short or a feature? How much experience do you have with video projects? Are you a film school grad? Reason I ask these things is that most "first films" aren't really marketable. They are more like learning experiences. However if you've received years of filmmaking training somehow, and you are now embarking on your first project under your own name -- then that is a different story...maybe.
It depends on what you want to do with the movie once it is done. Are we talking about a short or a feature? How much experience do you have with video projects? Are you a film school grad? Reason I ask these things is that most "first films" aren't really marketable. They are more like learning experiences. However if you've received years of filmmaking training somehow, and you are now embarking on your first project under your own name -- then that is a different story...maybe.
In order to raise any serious money from investors, you'll probably have to have a production company. Also, I believe you'll want a production company if you're going to buy liability insurance, which is very smart and will be required if you're shooting in any corporate locations.
Based on what you're doing, I'm not sure you really need a production company, but I think you'll want one and it will make your life a little easier. You didn't specify if you had a budget or outside investors. That is a big part of the equation.
Purely from a bookkeeping perspective, when it comes time to reimburse you for expenses, or write yourself a paycheck (you should include your pay in the budget), it's much easier to keep track of your production cash flow if there is a separate set of books, bank account, etc. Making a movie is a business, and it should be approached like any business. Don't forget the IRS. If you get $100,000 from investors and the movie flops, you may not be allowed to deduct expenses as an individual (the IRS might deem your movie effort as a "hobby") and you'll find yourself paying taxes on your losses. I'm not a CPA, but I've been running a business full time for about 15 years. The IRS frowns on people who blow lots of money on poorly conceived, badly executed plans that appear to be more recreational than for profit. You want to be absolutely sure that if you lose $100,000 that you can write everything off.
Based on what you're doing, I'm not sure you really need a production company, but I think you'll want one and it will make your life a little easier. You didn't specify if you had a budget or outside investors. That is a big part of the equation.
Purely from a bookkeeping perspective, when it comes time to reimburse you for expenses, or write yourself a paycheck (you should include your pay in the budget), it's much easier to keep track of your production cash flow if there is a separate set of books, bank account, etc. Making a movie is a business, and it should be approached like any business. Don't forget the IRS. If you get $100,000 from investors and the movie flops, you may not be allowed to deduct expenses as an individual (the IRS might deem your movie effort as a "hobby") and you'll find yourself paying taxes on your losses. I'm not a CPA, but I've been running a business full time for about 15 years. The IRS frowns on people who blow lots of money on poorly conceived, badly executed plans that appear to be more recreational than for profit. You want to be absolutely sure that if you lose $100,000 that you can write everything off.
