how to set up a production company?

[chinnyboo]

I was just wondering if anyone has set up a 'proper' production co. and if so, how much did it cost to register and when did you do it... i am thinking about setting one up when i come ut of uni... its just a though t for now, but is it easier to start one in the US?

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[miker]

don't set up a production company, that's the first rule if you want to maximise tax benefits.

set up a generic company (there are standard sets of Articles of Association or whatever they're called) and then run your production company out of that.

if you do it yourself (in the UK) all the paperwork can be had in .PDF format from the companies house website and it will cost around 50UKP, however you'll be much better off talking to an accountant who can then be your shield from IR and do your self-assessment etc. each year

if you don't want to go the limited co. route (fool) then anyone can set up a partnership or go sole trader for absolutely no outlay to start with -- the only rule I believe is that you MUST include YOUR OWN address ON ALL letters, invoices etc..

HTH

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[chinnyboo]

thanks, you seem to know quite a bit about that... not much moer I can say really... has anyone started a generic company yet?

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[tim.callaghan]

Hi,

Judging by the guys profile up top, it appears our man is from the lovely area of Worcs (I'll be buggered if I'm gonna spell it). To the point, US business registration and procedures really aren't gonna help here. LLC is what we call in the UK Ltd or Limited, and in Oz its Pty (Proprietry Limited). Every country has it's different methods for business formation and then even more different rules that govern henceforth.

I have my own company called UNE ltd (sounds a bit like unlimited) that I use to do all manners of trade, from multimedia pruduction, web design, consultancy, training, to just about anything I can flog. Using a limited company, if I go bust I can claim bankrupcy and not be in debt for the rest of my life (to some extent). Also one of the advantages of being a limited company is that you can put yourself on a payroll and pay your tax and NI as you go along, which very handy, because sole traders have the habit of spending their tax and have a mad struggle every year when they need to cough up.

Also, if you are successful, you can have investors by a slice of the company through shares. Plus it rocks, becasue I'm 24 and I'm the Managing Director of my own company.

Tim

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[chinnyboo]

thanks for all of that, my mind is definately more clear about the whole thing now!

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[ComingApart]

I'm not sure what a "generic" company is, but I would reccomend setting up an LLC (Limited Liabilty Corporation). I set one for my business. If I remember right, something like $75 in lawyer fees(this step could be skipped, if you know who to talk to) and $15 to process the paperwork. You would become a "member" in the LLC, so the company is a seperate entity from you personally, basically, if something goes wrong, you go belly-up etc, the COMPANY is held liable, not you personally, so your assets and property can't be touched. Basic small business tax laws, with little to no personal risk...
Plus you get to put "LLC" in your company name, so every goat-choaker in the world can ask "hey, whats LLC mean??"