ASK & DISCUSS INDEX

2 years, 4 months ago - James McCann

Hi Anisa,
What is your overall goal with the production company?

Some funds might only be available to a production company, not an individual producer, but then do you need those funds or can you get funds from elsewhere?

What is the financial/admin risk you're thinking about? Do you need to co-produce with countries other than one you're in?

You need to write down a full, in-depth plan, and as you do the answer will reveal itself as to whether or not you need to start a company (do you know at this stage if you're going to start it as a sole trader, and Ltd, etc?).

With the films you're planning on producing, what are you planning on doing with them, where are you thinking of releasing them? That will have an impact on if you need a company or not.

Don't start a company just because you like the idea of saying, 'I own a company,' but look into how many places need you to be a prod-comp and if it's worth the while.
It worked for me, because of everything I need/want to do, but it might not be for everyone.

Thanks,
James

2 years, 4 months ago - Kal Sabir

Hi Anisa,

I second what James has shared. You really need to know what you intend to produce and what you would want to do with the products.

I set up my company because I have a long term ambition and goal to write and produce my own films for distribution. At the moment, I'm producing standalone and proof of concept short films. In the long run I intend to diversify.

I can't say that having a company has opened doors for funding - I produce short films which through my experience don't have many funding options.

Working as part of a company, a legal entity, does reduce risk e.g. if something goes wrong or there is a contractual disagreement, the company is sued not an individual.

Of course, there is admin involved - contacting Companies House each year to file a statement, do returns etc etc. Best to hire a professional.

Hope that helps.


Best,

Kal

2 years, 4 months ago - John Lubran

As has been suggested in the comments. The devil is in the detail. The term Production Company doesn't actually mean anything as a legal entity. There's either an unlimited company in which anyone can add the term 'company' to any invention of title that is otherwise lawful, it means nothing in terms of statutory nomclemature.

Such an unlimited meaningless company has no more contractual traction than anyone else. It may however have more beneficial presentation effects than simply presenting as a self employed individual. Just add the word Company to your name or any word you fancy. It's lawful to do so.

So the actual issue is whether or not to register a limited liability company at Companies House. Some folk suggest that the obligations of owning a Limited Company are too onerous for poor simpletons. They're not. Neither should they take their own case to be a generality. The advantages of a limited liability company registered at Companies House are significant, even for a modest entity with a tiny turnover. But such significant advantages will be of less use to the unlearned. Usually there are tax advantages too, but the clue is in the title, Limited Liability. VAT registration has similar pros and cons. It's simply a maths thing.

As ever, it's more than just a statutory thing, it's more of a constitutional thing (Fundamental Principles of English Law) It's also how the worst of us get away with their loot and unsavoury behaviours.

If it's good enough for the likes of Sir Philip Green, it's good enough for everyone.

2 years, 4 months ago - NICHOLAS PROSSER

Hello Anisa,
Though on the brink of retirement, I was a freelance television drama director with additional drama producer, documentary director and corporate projects director. It was my accountant who originally suggested that both my ex-wife and I form a limited company. When my marriage broke up, I shelved the company but, some time later, he advised I formed it again, this time solo. Certainly, it was favourable, freelancing for the BBC, when they semed to prefer paying my company a fee for the services of me, as an employee of my company. I also discovered that broadcasters, such as BBC and Channel 4, preferred to commisision a company, rather than an individual. Of course, setting up your own projects, perhaps it adds estime and influence, when selling an idea or completed project. For example, through my company, I produced independent training screen acting workshops with show-reels for actors. Then, later, with the same camera and sound kit I'd purchased for that project, I made a corporate promotional video called Enjoy Bognor Regis. Later, when I wanted to independently produce and direct short drama films I'd written, I used my company as the production company. Though I haven't yet reached the marketing of these to festivals etc., I hope and suspect that being under the company name of my limited company might help. On costs, such as tax, I think it depends on how much production activity you have because, now that once I have reduced or stopped my production activity, I am advised that closing the company might reflect my situation. I hope this helps but please contact me for any further questions or exchanges on nicholas.prosser@prosser@gmail.com Nick