Producer and distribution expert Stu Pollard has been making films for more than a decade. His producing credits include Bass Ackwards, True Adolescents, Dirty Country and Ira & Abby. He has also directed two feature films, Nice Guys Sleep Alone and Keep Your Distance. He also works as a freelance consultant specializing in private equity financing, investor relations and distributor delivery. Here’s what Pollard had to say about the logistics and legalities of deciding to hang out one’s own shingle and seize the reigns of production: I want to start a production company. How do I establish an identity and a brand in a production-saturated city like Los Angeles? Before you start a company, be sure to ask yourself some basic questions: Why do you want to start one? Who do you want to start it with? What kind of projects do you want to make? Independent producers typically form companies to raise money for a particular film—sometimes referred to as a “single picture entity”—to raise money for multiple pictures—an “umbrella company”—or to establish their brand name via an ongoing concern over the course of what they hope will be a long career. All these company types have plenty in common, including two of the main motivations for creating them: protecting the personal assets and limiting the personal liability of the filmmakers and shareholders/members. When it comes to establishing an identity and brand, think about the types of projects you want to make and the existing companies that inspire you. These should serve as starting points for brainstorming a company name and look. Your name should be indicative of you and your style, and the content you wish to create. And given that you will be competing in the visual entertainment space, the “look” part of this equation is essential. Collaborate with a graphic designer to create your company’s logo, as well as the typeface and colors you will deploy in your website and related materials. Once you establish your visual identity, ensure all your outward points of contact—website, mailing address, email addresses, phone, etc.—are accurate and consistent. What appears on your website must match your letterhead/business cards, your search engine results, etc. Make it easy for people to find you. Lastly, let your work speak for itself. Leave hype and hyperbole to the hucksters. Be professional and real. Don’t start your company until you have something to trumpet. If you want to make features, be sure to have a few projects in development and some demos of solid production work to post on your site. The more reasons you can give people to work with you the better. The best way to build a strong reputation is start with a firm foundation of talent, confidence and integrity. You get one chance to make a first impression, so when you give the industry the first glimpse of your company, make sure it’s a lasting one. Also, please note I’m not an attorney. None of the information dispensed above should be construed as legal advice or considered a substitute for legal counsel from a qualified and licensed practicing attorney. What do I need to have in place in order to create an LLC or an LLP? What is the difference, and when do I need one or the other? The rules for creating a Limited Liability Company (LLC) or Limited Liability Partnership (LLP) can differ from state to state. You should start with your state’s Secretary of State website, which in most cases provides step-by-step instructions for forming either type of entity. From there, please consult with a living, breathing attorney to choose your entity type and state of formation. Since Film Independent is based in California, it is worth noting that CA-based indie film LLP’s (in my experience) are rare. Perhaps this is because the LLP form of ownership is limited in the State of California to persons licensed to practice in the fields of public accountancy, law or architecture. Rather than dig myself into a legal hole trying to explain the differences between an LLC and LLP, let me just say that my personal preference is the LLC because it combines the protection of a corporation form with the single tax structure of partnerships. But that’s not say that an LLP might not still suit your situation. If you’re interested in drilling deeper on the nuances between the two, check out this helpful link. If you still have questions on the subject, consult with… well, you know who (a lawyer). As for what you should have in place to start a company, let’s assume you’re forming an LLC. Here are some of the things you’ll need to think about in advance: I need to hire legal representation for my company/film. What does production legal cover and how much should I expect to pay? ‘Production legal services’ encompasses many key roles that attorneys play in the filmmaking process. During the course of creating your company and presumably making a film, you will work with several types of attorneys, or one who specializes in several different areas: How can I set things up so that I have all of the necessary documents at the end of the day? What are the basics? You shouldn’t try to make a movie by yourself. You shouldn’t try to start a company by yourself. Talk to some people who’ve done it before. Consider starting your company with a partner (or two, or three) so you’re not fighting all the battles alone. Find a great lawyer and accountant who believe in you and will cut you favorable deals early in your career. This isn’t as hard as it sounds. Make a list of all things you’ll need to start your company and run it for the first two years. Use that list to create a working budget so you get a sense of the commitment required. Items on your list should include, but not be limited to, the following:
Graphic Design (logo/corporate identity) Web Design Web Hosting + Streaming Mailing Address (Consider a PO Box or “UPS store box” if working from home) Business Cards Company Bank Account Corporate Filing & Annual Tax Fees Legal Fees Accounting Fees Insurance Office space Telephone & Internet Development expenses Assistant Salaries Rentals Your Salary/Fees
Even if you’re a shrewd dealmaker, chances are good you won’t be able to score all of the above for free. And in some cases, you won’t want to. Remember the old adage, “you get what you pay for.” So some of the most important documents you’ll need in place before you start your company are some Federal Reserve notes (i.e. cash). Not that you need a ton of money to get started, but you will want to have some tucked away to help you cover some of your early start-up costs, unforeseen emergencies and inevitable slow periods. The first few years may be pretty lean as you struggle to make a name for yourself. So keep costs low (lots of people run small production companies out of their homes) and don’t turn your nose up at any opportunities to either make money or work with people who might be in a position to hire you on future gigs. Even if it means doing something a little left or right of what you really want to be doing. Remember—first things first—talk to an attorney. If you don’t know one or are afraid you can’t afford one, remember you can always start with California Lawyers for the Arts. Also, one last time: I’m not an attorney. None of the information dispensed above should be construed as legal advice, or be considered a substitute for legal counsel from a qualified and licensed practicing attorney. Good luck! For more information about upcoming Film Independent events, click here. To learn more about our Film Education programs, click here. Learn how to become a Member of Film Independent by visiting our website, and click here to subscribe to our YouTube channel.
