I see a lot of people online that call themselves a production company. What exactly does it mean to be a production company. It seems like people use it more as a name that makes their various projects recognizable as theirs. Is there any other reason to start calling yourself a production company? If there are legal reasons, then should you copyright or trademark your name? Any other information is also welcome.
Porduction Company?
- Thread starter JohnJohnson
- Start date
Yes, most people do start calling themselves a production company name without registering the name with a state or creating a corporation.
The reason why you should make a legitimate entity is for both tax reasons and other legal ones. You are liable for everything in the films, so an LLC (Limited Liability Corporation) is ideal for each major project. Investors from one film cannot pursue profits or losses from another project if they are each separate legal entities.
Kevin Smith has VIEW ASKEW, which is a parent company to several other LLC's, like TOO ASKEW, which was the corporation for MALLRATS. Now TOO ASKEW's sole deal was to sell the film to VIEW ASKEW, which in turn sold it to UNIVERSAL/GRAMERCY. This protected the individual people from having angry investors come after them personally for the financial losses when their next film was a hit.
When most people fake it and just use a production company name without actually forming the legal entity, they are DBA (Doing Business As), which essentially means it is an alias for the individual and they have no protection for their own personal assets for any losses or law suits, including copyright infringement, injuries, liability, etc.
The reason why you should make a legitimate entity is for both tax reasons and other legal ones. You are liable for everything in the films, so an LLC (Limited Liability Corporation) is ideal for each major project. Investors from one film cannot pursue profits or losses from another project if they are each separate legal entities.
Kevin Smith has VIEW ASKEW, which is a parent company to several other LLC's, like TOO ASKEW, which was the corporation for MALLRATS. Now TOO ASKEW's sole deal was to sell the film to VIEW ASKEW, which in turn sold it to UNIVERSAL/GRAMERCY. This protected the individual people from having angry investors come after them personally for the financial losses when their next film was a hit.
When most people fake it and just use a production company name without actually forming the legal entity, they are DBA (Doing Business As), which essentially means it is an alias for the individual and they have no protection for their own personal assets for any losses or law suits, including copyright infringement, injuries, liability, etc.
It helps with marketing..and eventually if you are able to build the Co. up it helps with leagal matters and such. Most independents its about marketing..get a catchy name and people will remember that more often than the name of the movie...at least when you are making low budget independent movies.
A real production company can be many things.
There are true production companies that own lots of equipment and have the personnel to run it all - everything from preproduction to crew to post personnel - sort of one-stop-shopping. Others don't own anything but have a "Rolodex" of people who can fill the roles and their own the equipment; basically they're organizational specialists. There a numerous variations in between.
Legally the reason is to isolate your personal life from your business; they can sue the business, but not you personally. That's why I have Alcove Audio Productions.
Otherwise it is simply for the vanity of every person who owns a camera and/or dreams that they can make a film.
There are true production companies that own lots of equipment and have the personnel to run it all - everything from preproduction to crew to post personnel - sort of one-stop-shopping. Others don't own anything but have a "Rolodex" of people who can fill the roles and their own the equipment; basically they're organizational specialists. There a numerous variations in between.
Legally the reason is to isolate your personal life from your business; they can sue the business, but not you personally. That's why I have Alcove Audio Productions.
Otherwise it is simply for the vanity of every person who owns a camera and/or dreams that they can make a film.
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Sonny, do you know if it's possible to change from incorporated to LLC or have a direction to point me in? Google is my friend, but I thought I'd go lazy and just ask.
Sonny, do you know if it's possible to change from incorporated to LLC or have a direction to point me in? Google is my friend, but I thought I'd go lazy and just ask.
An LLC is a type of corporation. Generally, you have to form a new company to change its status, as that is a legal entity formed as one intention. Example, a 501(C)3 is a not for profit entity and cannot start engaging in for profit ventures - a new corporation would have to be formed, even with a similar name.
Consult an attorney.
So basically, until I am looking for investors, or to turn a profit/sell a film, a production "company" is unnecessary other than as a marketing tool? It seems as though the paperwork and cost of lawyers would not be worth it until there is money involved in the project.
You can start "JohnJohnson Productions" - or whatever you want to name it - as a DBA (Doing Business As) without anything other than a business card and a web site to establish your presence. Once you begin doing paying work you should incorporate your production company as an LLC (Limited Liability Corporation). Each project you do will become a separate LLC under your corporate umbrella so they are legally isolated from each other.
I know that most people balk at the expense, but once you start doing serious work you should at least speak with an attorney, or better yet have one on retainer.
I know that most people balk at the expense, but once you start doing serious work you should at least speak with an attorney, or better yet have one on retainer.