Film production companies play an important role in the entertainment industry as they are the ones who manufacture, produce and advertise films and videos. However, aside from making sure you can do all of that and distribute your content, there are also a few things you need to know when starting your own film production company. In this case, you need to plan carefully what to do when you start one.
That said, keep reading for the steps to start your film production company.
Step 1 – Business Planning
It would be best if you had a clear business plan to successfully start your film production company. After all, with a business plan, you can determine and better understand the specific needs of your business.
In this case, some of the things you can cover in your business plan are the expenses, the target audience, the price you can charge your customers, and the name of your business.
Step 2 – Creation of a legal entity
Once you have a solid plan, you also need to choose the legal entity for your business. In this case, sole proprietorship, partnership, LLC or limited liability company and corporation are among the most popular business structures.
However, the recommended legal structure for many production companies is an LLC. As an LLC, you can protect yourself against liability if someone takes legal action against your film production company. Apart from this, LLCs also offer more flexibility when it comes to corporate taxes. You can hire a professional incorporation service to do this step.
Step 3 – Tax registration
Before you can start operating your business, you must register for various state and federal taxes.
In this case, to register for taxes, you will need to obtain an EIN or employer identification number. Fortunately, you can quickly get yours through a number of different methods: by fax, mail, or from the IRS website.
However, you should note that how your film production business is taxed will depend on which business structure you choose. For example, some LLC companies may benefit from the tax treatment of an S. film p
Step 4 – Opening a bank account and credit card for your business
Overall, having a separate bank account and credit card account for your business is essential for protecting your personal assets and limiting your business liability.
After all, if you combine your personal and work bank accounts, you risk losing your possessions such as your home and car if your business is sued. This is called “piercing your corporate veil” in business law.
Plus, it can help you get credit cards and other financing on behalf of your business. These can give you better lines of credit and better interest rates if you know how to work with business credit.
Step 5 – Keep financial records
Tracking your sources of income and payments is essential to knowing your business’s financial performance. After all, when you have accurate and detailed accounts of your business, it will be easier to file annual taxes.
Step 6 – Obtaining the required licenses and permits
Do not get the licenses and permits required can result in penalties or, worse yet, the shutdown of your business.
Additionally, you should note that some states require specific licenses and permits to start a film production business. Therefore, it is best to go through an SBA office to find out more about licenses and permits in the state you have chosen.
Step 7 – Obtain Commercial Insurance
As with licenses and permits, you should also purchase insurance for your business so that you can operate it legally and safely. Plus, business insurance can protect the financial health of your business by compensating for losses.
However, you should note that different types of insurance policies are issued for different types of businesses. Likewise, the risks of these policies also differ.
In this case, if you are unsure of the risks to your business, you can purchase general liability insurance. This insurance can cover small businesses, making it ideal when you need to start your film production company.
Apart from, Work accident insurance is another crucial insurance policy that most businesses need. In fact, your preferred state will likely require you to have workers’ compensation coverage.
Step 8 – Design your brand’s logo
It would be best to show what your business stands for, and establishing a strong brand logo can do that. After all, your brand logo can help customers perceive your business in a positive way, and having a strong brand logo can help your business stand out from your competition.
Still, let’s say that you are not very familiar or confident in your business logo design. In that case, there are many useful tips and tricks that you can look up online.
In fact, you can use them to create the perfect and unique brand for your business. Of course, apart from that, you can also take inspiration from well-known film production companies.
Step 9 – Building and Launching Your Website
After you have defined your brand and created your unique logo, then you need to create a website for your business. After all, a website is necessary these days, especially since a strong online presence has become crucial to the success of a business.
Therefore, you should also create a website with an intuitive interface so that potential customers can quickly find out more about your new film production company.
Step 10 – Preparing Your Business Phone System
Finally, keeping phones separate for your business and personal use is considered a good idea to keep your work and personal lives separate.
Of course, other than that, having a separate work phone can help build legitimacy for your new business and make it quicker and easier for potential customers to reach you.
Fortunately, there are many services available for business owners who wish to have their business phone system. In this case, when choosing a service, it is best to check the features, convenience and price of the phone plan you have chosen.
Finally, you understand what you need to do to successfully start a film production company. Not only do you need to be creative and technologically savvy in film and video production, but you also need to be business savvy.