Setting up a film company

Jackel414

Jackel414

Member
About a year ago I started a small film company with a friend and we have reached the point where we are looking towards making our first feature film. For this reason we are looking to make the company official and are looking for some advice. After doing some research I was originally planning on making our company a general partnership, but was then told by some people that I should create an LLC for liability reasons. In addition to that, I've read some stuff that talks (I think) about creating an LLC, or something like it, for each individual project. Given that in the state of Massachusetts (where we are located) there is a $500 filing fee for LLCs, creating one for each film seems a bit much. So my questions are: What type of business should we make our film company? And should we look into creating a new "company" for each film? Thanks.
 
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You could make each film as a limited partnership but I don't know how that covers you for liability. I too have a production company in MA and made it an LLC with my partner. We can still do productions with other companies as a limited partnership. The $500 is a yearly filing for the LLC as well as some basic paperwork, etc.

Michael
 
The studio model is setup like this. The studio owns the stage, equipment, and all real assets. The studio finds outside funding and sets up a corporation for each film. That company rents the stage and equipment from the studio parent company. This way the parent studio pays for it's assets repeatedly, and is also financially seperated from the liabilities that may arise on a production. Each production pays it's own insurance, has it's own contracts with actors, stunt men, payroll companies, etc. Movie sets can be dangerous places, and this kind of legal seperation is often necessary for the parent companies protection.

I hope this helps. Good luck!

Chris
 
Ok, thanks for the advice. I think we're going to go with an LLC, but we are looking to talk with a lawyer beforehand. Anyone out there know an entertainment lawyer in Boston we could talk to?
 
There are some rules to be followed when formed an LLC. It would be better to consult a certified public accountant(CPA) or perhaps a lawyer who knows the pros and cons of formation of a company.
 
LLCs are better for sole proprietorships. An Inc may be better for a partnership.
I'd not start either to make a movie though.
 
You should definitely start an LLC specifically to make a movie. I don't agree that LLCs are better for sole proprietorships. A lot of people seem to think that, but I have received a lot of legal advice to the contrary and prefer the advantages of being incorporated. If I were to make a feature film, I would definitely file for a separate LLC, though, so that the film itself would be protected under a different umbrella than my company. I don't want the film being the same as my company.
 
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