• ✅ Technical and creative solutions for your film.
    ✅ Screenplay formatting help, plot and story guidance.
    ✅ A respectful community of professionals and newbies.
    ✅ Network with composers, editors, cast, crew, and more!
    🎬 IndieTalk - Filmmaking and Screenwriting help site and community.
    By filmmakers, for filmmakers since 2003

Starting up a business company

R

RED ROBOT

Hello yet again guys .


So I have a student business company and so far we won a bunch of national and local business competitions.However it is way too much work to handle between filmmaking work and the company and I simply don't have enough time for both .

So I will probably quit the company and will focus mainly on the filmmaking work.


My idea was to make my own website ,to post my work , reels , maybe some blogs and updates and a price list , because a lot of people in my area ask me to shoot club photography and weddings and ads and commercials . Now I do understand that they probably want ME to shoot it because I am 17 and they'll pay me less.However I wanted to make a website and just if they are interested in something to tell them to visit my website and contact me if they have any questions .

Now I know that you'll probably ask me why would I make a business company when I can just go as a freelance videographer .

The thing is that while I was in my business company as soon as I go somewhere or call someone introducing myself and my company I see how they earn a bit a respect and threat me as Im from youth organisation and they give me shooting locations and props for free and I make a lot of connections .

I have the feeling that when I call them and introduce myself as just a student who is making a film rather than a youth film / business company / organisation they just don't take me serious .


What is the process of creating a film company and what will you guys advise me ? Shall I even start it ?
 
http://www.google.com/url?sa=t&rct=...j16kxAoM9wxT8GKgvXjqJrA&bvm=bv.48293060,d.aWc

Step 1
Pick what type of film production company you are establishing. This is often determined by the experience and resources you already have but is not required. For example, if you have 10 years experience as a line producer, you know the nuts and bolts of physically putting a film together and have the Rolodex to do so with a few phone calls; this is a production services company. If you have relationships with investment bankers or film distributors, your company may initially be more inclined to package or finance productions.
Step 2
Research the tax incentives in different states (and countries) to determine where you will set up your company. Some states give larger tax breaks than others to encourage filmmakers to bring work into the state. Keep in mind that you can establish your company in one state and still film in another to receive the tax incentives. The tax incentives are available during physical production periods and are not part of the day-to-day tax structure of a production company.
Step 3
Name your company and establish your business entity. Establishing an entity is done through the secretary of state of the state in which your company resides. Corporations or limited liability companies reduce the risk exposure to company owners in the event of financial or legal liability. Many states allow entity filing through an online portal and pay the filing fees with a credit card.
Step 4
Obtain financing for the company depending on the type of production company you have formed. Development and financing companies are constantly seeking venture capital for new projects, ranging anywhere from $50,000 to $100 million dollars. A production company that does the physical work of making the film does not need a large operating budget until production starts, since the work is contracted out as needed.
Step 5
Talk to an insurance agent regarding the insurance needed for different production companies. If you have regular employees, you will need basic liability and worker's compensation insurance. You will also need to increase insurance coverage for physical production periods on equipment, workers and liabilities.
Step 6
Set up the financial structure of the company. A production company with several films in production will create a subsidiary LLC for each production to account for profits and losses on each project. Productions budgets are based on each department with stars, directors, producers and screenwriters considered above-the-line talent and everyone doing the physical production work considered below-the-line talent.
Step 7
Design a logo, a website and video clips. The website should provide a background of the key people in the company with a reel of any quality work they have performed. A reel is a three to five minute montage of clips. The reel does not need to be work done by the company but can be of its key people prior to establishing the production company.
Step 8
Execute your business objectives. For those in development, this means reading and optioning screenplays then finding stars to sign on while seeking funding. Production companies that provide production services must market to development companies that offer below-the-line talent and services. Film financing companies must partner with development projects. In the end, the development company needs a financier and both need the production services company to make the film.
Step 9
Network whenever you can. Whether on a job set, or at a party, the successful filmmakers are always making new alliances and seeking creative partners.
 
Last edited:
Thanks.

But I don't like these types of posts like ' 10 steps to win the lotary ' ' 10 steps to become a milionaire ' .

I just want to have a conversation here in the forum with people who have much more experience than I do and who are probably way wiser than I am so I just wanted to hear their opinions rather than following 50 steps to do something .

Thanks anyway.
 
ok, conversation mode...

What are the pros and cons of each business type in Bulgaria. How do your laws differ from countries like USA?

What are the costs involved?
 
I have no idea how much of this is relevant because the laws are different from country to country, so this is just my experience based on U.S. law working freelance for the past 15 years or so.

The simplest thing you can do is establish a DBA - this essentially allows you to operate as a freelancer but with an official business name.

It's been a long time since I did this, but basically you go to the local county and got a business license, which usually costs less than $100. Then you file the public DBA notice in a local newspaper for a few weeks - the paper charges another $100 or so for that. Finally you go to your local bank and open a business checking account in the new business name - they'll need to see the completed business license and DBA paperwork.

The primary advantage of this is that now when you charge a business for your services they can write the check out to your business name rather than your name. For smaller businesses that might not be a big deal, but larger companies often prefer not to have payments for outside vendors go to individuals for accounting & tax purposes. Writing a lot of checks, or big checks, to an individual is a red flag for the IRS because it can look like the company is trying to avoid paying payroll taxes, insurance and other benefits for employees by using independent contractors.
 
NickysFX said:
I am not making money right now from any of my short film, however I shoot weddings and other things as I mentioned from which I do get money.
Click to expand...

The reason I ask is because if this business is not making money and there is no business plan in place to make any, I'm not sure why anyone would continue to be part of it. On the other hand, your side gigs ARE making you money and THAT is the business that is worth your time.

Good luck anyway.
 
Discussions about starting a business or not always give me a swift pain.

At it's essence the question is "do I wish to comply with the legalities involved." I know you disliked the "10 Steps" type of answer, but it is a necessary response. Why? Because business plans, financial plans, dealing with laws and taxes, advertising, etc. is 70% of what you will be doing.

I personally HATE running the business side of my business. I don't like doing taxes. Doing the books is a real PITA. I get ulcers when it comes time to decide whether the few extra bucks goes to the college fund, retirement, upgrading the studio or getting something extra special for my wife on our anniversary to let her know how much I appreciate her. And there is so much, much more.

Not to mention that running a business gets in the way of doing the "fun stuff." And you have to subordinate your life to your business - if you do it half way, you go under.
 
I did not saw that there are new responses so I would like to thank anyone who got involved in the thread .

I decided to create my own website and build a reel and post it there and then send people to the site to take a look at my work etc and just introduce myself and not the whole business company .

I am very confident in building the company myself as I builded my previous company just with one other guy and we won international competitions ,however I do realise that perhaphs this is a lot of work just for one student and I decided to wait till I go to film school and I meet other people with same interests and I will start building from there.

Thanks to all who participated again .
 
It's great you are waiting for film school. You will have more experience and knowledge on the subject of filmmaking and business, and you'll probably meet the person/people you want to start your business with. Hope all goes well. If you could, please post a link to the website once you are done. I am curious about it :)
 
I'm not sure I'd advice anyone to learn business within the filming industry. It's very competitive and cutthroat. I was lucky to learn business in an area that was relatively free from strong local competition. It was good since I was able to experiment, make lots of mistakes and learn from them and not go broke at the same time.

The big benefit of film business is you can scale very easily. Get good at the business side of filming and you can make a lot of money, so long as you don't go broke before that happens.

Good luck!
 
You must log in or register to reply here.
Back
Top