CATEGORY / Finance

Starting a Film Production Company

Starting a Film Production Company

Starting a film production company is an exciting, if not nerve wracking step for many filmmakers, whether new or experienced. With your own company, you will likely have full business and creative control, depending on the level of involvement of any investors. However, where to start and the best avenues to pursue can sometimes be overwhelming.

What are You Producing?

One of the first steps in film production is to decide what you are making. Feature films, animation, shorts, commercials, documentaries, action movies and so much more from which to choose. Once you have an idea what types of creative you’ll be producing, it should be fairly fun for you and your creative team to come up with a name. Just look at some of the names of A-List talent production companies: Brad Pitt – Plan B Entertainment, George Clooney – SmokeHouse Productions, Kerry Washington – Simpson Street, Sofia Vergara – Latin World Entertainment Holdings and many more.

Company Type

Now that you have a vision and direction, a management team and a super cool company name, it’s time to pick your company type. Most film production companies opt for a Limited Liability Corporation (LLC). Additionally, many filmmakers set up each film the company makes as it’s own LLC. Limited Liability means just that – if anything goes wrong during production, there is a limit to the liability the filmmaker has, which allows him or her to protect themselves, the overall company and their assets. A sole proprietorship, while slightly easier to set up, puts the filmmaker personally at risk. Like, if there were an accident on set. So this is not generally recommended. A corporation on the other hand, limits all liability, but it also is complicated to set up and maintain and is probably far more than filmmakers need early on in their careers. We recommend you always seek the advice of a professional attorney when starting any company, but especially in Entertainment. If may seem like a large investment up front, but it is the safest and most secure way to get your business going.

Production Company Business Plan

A great way to lay out your business and come up with a production plan is to create a Production Company Business Plan. Your film business plan is really the blueprint of your how your company will proceed and gets everyone in agreement before you start down the production path. The Business Plan maps out the ompany’s mission and vision, structure, finances, functions, policies, ethics and more. It is a good idea to draft your business plan before you begin filing LLC (or other) paperwork, so you are all in agreement on how your production company will function.

Film Financing

One of the greatest challenges for any filmmaker, no matter how long they are in business is finding money to invest in their film or film slate. There are independent film investors, grants, scholarships, product placement, tax incentives, location incentives, contests with prize money, capital investors and dozens of other ways to secure financing. Most often, film financing is cobbled together using a multitude of different investment types – all of which have different ROIs and payback schedules. Of course, the ideal investment is one that does not need to be paid back. To discover more about movie financing, you may want to check out 1000 Ways to Finance Your Movie. – How to Start a Production Company

For more information on starting a film production company, please see: Start a Film Production Company

How to Set Up An Online Retail Business In The U.S.A?

Setting up online businesses can be an attractive way to draw more customers in. Nowadays, it has become a trend to set up o nline retail businesses for delivering and serving customers with ease. Customers now prefer more to get their products delivered to them conveniently rather than going out and buying them. So, there is a growing trend of businessmen starting online retail businesses in every part of the world.

Setting up an online business

For the maximum part, setting up online businesses is the same as that of any business. However, operating online retail stores comes with various financial as well as legal considerations, which the business owner must follow for a smooth and hassle-free operation. Even if an online business does not sell any product, the laws relating to digital rights as well as online advertising still apply to them.

The government agency that regulates every e-commerce activity is the Federal Trade Commission. Their regulations include the usage of commercial emails, customer privacy as well as online advertising. The agency’s online marketing and advertising page will provide aspiring online businessmen as well as present businessmen to know more about the terms and regulations related to e-commerce.

The need to protect a customer’s privacy

While operating an online business, the company must know how to protect their customers from identity theft as well as other misuses of their customer’s private information. This is very necessary for their operation as no online business company will be able to operate without providing their customers with the required and much-needed safety and security. So, every such company which gathers financial, as well as personal data from their customers, must know and understand the regulations and rules that surround this field.

Information regarding the collection of sales tax for such business

According to the law, a business that has a physical presence in a state must collect sales tax from their customers. So, it signifies clearly that an online business need not collect any kind of sales tax from their customers. A physical presence is determined by the availability of a warehouse or an office or store relating to the concerned business. An online business does not have any such kinds. So, they are forbidden by the law to take any kind of sales tax from people. However, they need to check out those rules fully and then start operating.

An overview of the rules regarding copyright and digital rights

Other than personal data, there are many things that need to be protected on the internet by the online base businesses. The digital works, movies, music, texts as well as art are copyrighted as well as protected through the Digital Millennium Copyright Act. The online business enterprises doing e-Commerce must check out these rules and regulations and then continue their operation. This is needed for protecting their own business from any sort of legal troubles and issues faced due to the violation of these rules and regulations.