Key Considerations When Forming a Production Company

When forming a production company, one of the first questions to ask yourself is whether you plan to produce a single project or multiple projects over a long period. This decision will shape almost every aspect of your company’s formation, from the type of business structure you choose to the contracts you draft.

Choosing the Right Business Structure

Selecting the right business structure is crucial. Many production companies opt for an LLC due to its flexibility and liability protection. However, your choice of entity can have significant implications, including as it relates to taxes.

Using Guild Talent

If you plan to work with union talent, you’ll likely need to become a signatory to the relevant guilds, such as the Directors Guild of America (DGA), Screen Actors Guild (SAG-AFTRA), and Writers Guild of America (WGA). Each of these unions has its own set of application and compliance requirements, so it’s essential to familiarize yourself with these processes early on.

Creating and Negotiating Contracts

Contracts are the backbone of any production. You’ll need to have templates for key agreements, including:

·      Talent and Crew Contracts: To clearly define the roles, responsibilities, and compensation for everyone involved in the production.

·      Location Agreements: To secure the necessary permits and permissions for filming locations.

·      Additional Production-Specific Contracts: Depending on the nature of your project, you may need other specialized agreements to protect your interests and ensure smooth operations.

Other Considerations

Don’t overlook the importance of protecting your intellectual property. Registering copyrights for your original work is often a smart step. Additionally, think about the long-term vision for your company. Do you plan to expand into new markets or types of content? Will you seek partnerships or other growth opportunities? Having a clear strategy in mind from the outset will help guide your company’s development.

Need legal assistance? By taking these key considerations into account, you’ll be better prepared to navigate the complexities of forming a production company and setting it up for long-term success. Need further guidance? Contact Think Creative Legal today to schedule a consultation and discover how TCL’s expertise and proactive approach can benefit you and your business.

The foregoing is not legal advice and is meant for informational purposes only.