I was given some advice today which i wasn't too sure about, and i wanted to check it with you guys to get your thoughts. The law is probably different here in Australia, so i don't know if things are just different here or if this is the way things are done everywhere.
I make my films and shorts under my companies name, it's a Pty Ltd company, and has an Australian Company Number, meaning i can operate internationally...
Anyhow, this guy suggested that for each feature film i make, i create a new company under the name of the film. That company is then owned by my company. The reasoning was that if i offend somebody or somebody believes the idea was theirs, they can sue the film, but not my company, because the film was made under it's own company.
I spent a lot of time and money on paperwork and lawyers and accountants setting up my company, and i'm not sure i want to go through it over and over again every time i want to make a film.
What do you guys think?
If you're still an amateur dont worry about fucking paperwork, and that others will sue you (you're not in the US) just make movies.
Thats how I see it.
However, if you're professional, and you really do have controversial and likely to be offending movies, then it doesnt exactly sound too bad.
But all for the sake of anti-sueing... a bit too much IMO.
The company is actually an advertising company, but i'm interested in taking it to filmmaking. The films wouldn't be amateur productions, they'd be high budget (at least for independent films) with international distribution in mind.
I'd avoid paperwork if i could, but it's not me that has to do it anyway, i'm only a writer/director, it's the other guys that have to run everything through the books. I'm looking out for them.
Anyway, i can't imagine i'd be attracting lawsuits, but the person who suggested it to me claimed that all the big studios do it that way.
a different production company name for every project you do is smart defensive business sense.
This way if somebody sues you (including people you owe money to on the project) they can't bring down all your projects easily -- just the one they have a dispute with.
I agree. Make a new company for every shoot. Just because you think you are small time and others think you are small time. When an actor slips and breaks their arm and tries to haul you into court you will be happy.
Good Luck
My only concern is that you're all talking like this is the first you've heard of the idea. Not that it concerns me that you all haven't heard of this before, but more that if you haven't heard it then it's probably not standard practice.
Actually my attorney advised me to do this long ago...I have heard about it. The only problem is that I am a DoP and haven't produced anything under my company is a long time.
Good Luck
It is standard practice, particularly in the low-budget sector. Generally, people form one company for each feature film they make in order to avoid having to pay the debts of a film that failed with the profits of a film that was successful.
Correct me if I am mistaken, but I don't believe that the big studios do it.
About breaking arms, I usually get my actors to sign a form saying they are responsible for themselves, that they won't have to do anything they don't feel safe about, and that if they try and sue or blame me for their mistakes I will turn a blind eye. A signiature is an amazing thing, and can get you out of a lot shit!
I've heard that, if you're making profit from your films, THEN it's a good idea to start induvidual companies just in-case you go bankrupt. That way you lose a "movie" rather than your production company.
But I also agree with foul-mouthed emjen. Fuck that, just make movies! [img]wink.gif[/img]
<font size="2" face="Verdana, Helvetica, sans-serif">Last I heard is that studios always form companies for each film they do, mostly for the (aforementioned) bankruptcy protection as well as tax reasons.Originally posted by Peter_G:
Correct me if I am mistaken, but I don't believe that the big studios do it.
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