Starting up a Production Company

[Michael Frymus]

I've asked this on the DVXuser forums, but I want more feedback.

I have been working freelance as a DOP/Camera Operator/Gaffer under my name this whole time.
Recently I've been thinking about working under a production company name instead of my personal name.

I've seen people who call themselves a production company but they are the only ones within the company - So doing everything solo from finding the job to doing the job.


Why Do I Want To Do This?
I believe it is more professional to work under a production company name rather than your personal name. Even if you are working solo, giving yourself a name sounds more legit. It will sound and look more professional.
You could have 1-2 people in your company, but make it look and work like a fully staffed company, making yourself bigger and more powerful, hence getting yourself established easier and better.


Focus:
My company (as I do now) would continue to work on music videos and commercials for the most part. We'd also work on real estate videos and short/feature films, however these are less in demand/popular so it won't be as focused, but still doing them.


Partnership:
As a company, I would like to have a partnership or have other crew members. However, at the moment no one is looking at forming a production company or they live too far away and have no transportation to be considered. So, instead I will have these potential people on stand-by for when the right gig comes along where I need to hire.

For the most part (about 50-75% of the time) I would be working solo. It's either because the budget is low, or I just don't need any extra crew members for simple jobs.

I work mainly as a DOP - I may not be a professional, but I do have good experience.
I also have experience with editing and colour correction. I can offer almost a whole package by myself. If there is complicated work, such as editing, sound, or VFX, then I'd hire someone to do it.
So, I can work solo, but I would definitely prefer to have others with my all the time. But that's not always necessary or possible. But even someone helping with finding work for the company and getting commission would be awesome.


Studio/Office Space:
I'd love to own a mini studio with a cyc white/green/blue screen and or an office space
But, with this comes big money. Building the place up and owning or renting the place.


Gear:
I don't own that much gear.
I do have most of the basics, but I'd love to get more gear to prevent renting it and wasting money to rental houses instead of taking it ourselves. I'm currently working with a DSLR that is becoming a nightmare now, so I will be quickly switching cameras next year. But with that comes lots of lighting and misc gear that would be great to have. I would not be able to afford it after the camera purchase. So, I'd most likely need to get a bank loan or win the lottery to get my gear.


Issues:
Being recognized as a company, do you think I'd be able to get better recognition and more jobs than if under my name? -- I know it matters by how I market myself, but I'm wondering how other businesses or people would interpret it.

I do sometimes apply for jobs online. In this case, I think I'd apply under my name instead of my company name? But I'm not sure which would be more appropriate because if they are looking for someone and they get an application from a company then they might take it the wrong way than if the 'camera operator' applies?

I also have a website under my name. Should I stop running that and switch it to my production company name instead?
Or another thing I thought of (which still sucks as I'd have to pay more) is to have a website that splits into two: One for my company, one under my personal name. Nice, but probably not necessary.

Is it worth it??

 

[Joel Arvidsson]

For the website part. Just take down the personal and relink it the production site. You dont want to miss the traffic you had on your personal site.

 

[Elsie N]

Michael, as a sole owner of my own production company, set up as an LLC, I recommend it. Hire crew when the need arises, but otherwise continue operating as you do now.

I own my own equipment and rent to the LLC when doing anything other than personal stuff. My thinking is that if the LLC ever gets sued by someone frivolously looking for a big payday, they can't touch my equipment and other than a few thousand in the bank, aren't going to recoup lawyer's fees. Of course if you make a movie under the production company's name, you do have that value added and should have insurance for the movie. I set up my LLC via Legal Zoom.

 

[Marcos Montenegro]

Create an LLC.

TAXES is one of the main reason why you should.

 

[Michael Dalton]

I think hiring a company may work against you, sometimes people associate companies with overhead. Where you'd want to do it is where your services are larger then one person, or you offer complete care. The service world is tricky. I'd suggest do both.

In my case, I have three companies, under one umbrella. My production company which is established, and makes documentaries, a second that sells stock footage, but it's more about building a specialty brand, and the third is my risky projects. It's where I can progress stuff I'd like to work on, without the risk of hurting my main company which makes money. In all 3 cases, i'm 100% focused on building them and they work off one and another.

 

[Björn Benckert]

I think hiring a company may work against you, sometimes people associate companies with overhead. Where you'd want to do it is where your services are larger then one person, or you offer complete care. The service world is tricky. I'd suggest do both.

In my case, I have three companies, under one umbrella. My production company which is established, and makes documentaries, a second that sells stock footage, but it's more about building a specialty brand, and the third is my risky projects. It's where I can progress stuff I'd like to work on, without the risk of hurting my main company which makes money. In all 3 cases, i'm 100% focused on building them and they work off one and another.

Hmm,

Most important I think is when hiring people which is needed sooner or later, then you have to put your self in your employes situation... And to me it's quite east to understand that a lot of people like to think that they work as a group for / in a company than being someones assistant....

Not may people think of it, odd enough the advertising agencies are really poor at it they usually name their companies as their last name (big ego reflectors normally) and I think it's not really so that someone that works for "Björn Benckert Inc" would be as dedicated and take as much responsibility as somebody that works for "The Syndicate"....

Another thing try to stay far away from partnes as possible, and if you do really feel lonely and you really need to work together with somebody then make sure you are family or that you could consider the person to be like family... because in the end thats kind of what you are.

So my advices would be: GO start a company, do it alone, and do not name it Fyrmus Films or something like it.

another thing, do only hire people when needed, there is nothing fancy with having lots of people on staff... So run with freelance guys until you have them on staff / hired every day for long time then maybe consider to hire...

As you understand I'm writing from several years of struggle in this field

 

[Michael Frymus]

Interesting... I'm reading all responses.

Another thing that just came up, if another company hired me to shoot I would be able to use that footage for my demo reel, or even show the final product.But, if I work as a production company, and if I get hired by another company then I don't think Id be able to do that. Depends on the situation I guess.Right now, a company from LA hired me to work freelance locally to shoot stuff for them. I can use the footage for demo no problem.If I work with them again, which I am once in a while, and I change my name and site to my new production company, then would I still be able to showcase my work, even though its technically shot my me or us, but not for our company?

 

[Elsie N]

Keep the two identities. They are not mutually exclusive.

 

[Manfred Lopez]

Another thing that just came up... ...then would I still be able to showcase my work, even though its technically shot my me or us, but not for our company?

How about this: your company does the work and earns the paycheck, and your personal website as a DoP shows the reel with your work on it. Just because you have a production company doesn't mean you stop being a DoP. Also make sure your narrative credits get on IMDB.com.

 

[Björn Benckert]

Interesting... I'm reading all responses.

Another thing that just came up, if another company hired me to shoot I would be able to use that footage for my demo reel, or even show the final product.But, if I work as a production company, and if I get hired by another company then I don't think Id be able to do that. Depends on the situation I guess.Right now, a company from LA hired me to work freelance locally to shoot stuff for them. I can use the footage for demo no problem.If I work with them again, which I am once in a while, and I change my name and site to my new production company, then would I still be able to showcase my work, even though its technically shot my me or us, but not for our company?

Conflict of interests no doubt.

Uually it works so that even really experienced and talented DOP, loose pretty much all his work as a DP as soon as he decide to direct his first film... As of that moment he is not so experienced and talented in the eyes of the directors he just to work with

So if you make the jump then going back might not be an option. So the question you need to ask your self is basically if you think you are a good DP and can make a good living doing it or if you think that you are better of running your own production company... Doing a little bit of both I actually never really seen be done successfully.

 

[Frank Weeks]

When I opened my production company an eternity ago there was a group of retired business people that donated their time to advise those getting started. If there is anything like that in your area search them out.
There are some great suggestions above. Be very careful of partners. Incorporate and protect yourself. And don’t get into this business unless you truly love it. It’s not a profession that renders a lot of wealthy people, but if you love what you do, life is good. Next year will be our 30th, and I wouldn’t change a thing. Well we did buy MII instead of Betacam…. Ouch. Best of luck to you.

 

[Björn Benckert]

How about this: your company does the work and earns the paycheck, and your personal website as a DoP shows the reel with your work on it. Just because you have a production company doesn't mean you stop being a DoP. Also make sure your narrative credits get on IMDB.com.

Not to sure... Later on when you start to bid as a production company on the same projects as your former DoP clients... well then, in their eyes at least, you are not a Dop for hire any more.

 

[Michael Frymus]

Well,

Currently when I am working freelance, I work solo. (50-75% of the time). Working solo I work as the dop, camera operator, gaffer, and sometimes direct some stuff. Basically do everything. I don't always edit though.

Working as a production company, I'd be doing the exact same thing. Working solo 50-75% of the time doing the same stuff I would be if I was freelance. Only difference is that I call myself a production company as I offer my services as a package doing everything in one production or I can still do one position on a production.

I'm thinking of it this way... I own this 'company'. I work for them but I also work for myself. Most of the time Id work within my company, but for the odd jobs, Id work for myself.
If a client is looking for a complete package, or a fully crewed set, Id work under my company.
If another company hires me to work as a complete package also, Id probably still consider myself working under my company.
But, if I am job searching and I see someone is looking for a camera operator or a dop a production company to shoot a music video, Id work under for myself since Id be working freelance for another production company who is handling the music video.

So, in a way, I'm still working as a DOP whether it's for my company or for myself.
It means Id need two websites and possibly double advertising, unless if I advertise myself within the company.

I'm thinking about creating the company. No one will really know who runs it, or how many people are involved, or what. It's a company. This would be a great way to start with bigger better clients.

 

[Elsie N]

Well,

Currently when I am working freelance, I work solo. (50-75% of the time). Working solo I work as the dop, camera operator, gaffer, and sometimes direct some stuff. Basically do everything. I don't always edit though.

Working as a production company, I'd be doing the exact same thing. Working solo 50-75% of the time doing the same stuff I would be if I was freelance. Only difference is that I call myself a production company as I offer my services as a package doing everything in one production or I can still do one position on a production.

I'm thinking of it this way... I own this 'company'. I work for them but I also work for myself. Most of the time Id work within my company, but for the odd jobs, Id work for myself.
If a client is looking for a complete package, or a fully crewed set, Id work under my company.
If another company hires me to work as a complete package also, Id probably still consider myself working under my company.
But, if I am job searching and I see someone is looking for a camera operator or a dop a production company to shoot a music video, Id work under for myself since Id be working freelance for another production company who is handling the music video.

So, in a way, I'm still working as a DOP whether it's for my company or for myself.
It means Id need two websites and possibly double advertising, unless if I advertise myself within the company.

I'm thinking about creating the company. No one will really know who runs it, or how many people are involved, or what. It's a company. This would be a great way to start with bigger better clients.

Well,

Currently when I am working freelance, I work solo. (50-75% of the time). Working solo I work as the dop, camera operator, gaffer, and sometimes direct some stuff. Basically do everything. I don't always edit though.

Working as a production company, I'd be doing the exact same thing. Working solo 50-75% of the time doing the same stuff I would be if I was freelance. Only difference is that I call myself a production company as I offer my services as a package doing everything in one production or I can still do one position on a production.

I'm thinking of it this way... I own this 'company'. I work for them but I also work for myself. Most of the time Id work within my company, but for the odd jobs, Id work for myself.
If a client is looking for a complete package, or a fully crewed set, Id work under my company.
If another company hires me to work as a complete package also, Id probably still consider myself working under my company.
But, if I am job searching and I see someone is looking for a camera operator or a dop a production company to shoot a music video, Id work under for myself since Id be working freelance for another production company who is handling the music video.

So, in a way, I'm still working as a DOP. Whether it's for my company or for myself.
It means Id need two websites and possibly double advertising, unless if I advertise myself within the company.

I'm thinking about creating the company. No one will really know who runs it, or how many people are involved, or what. It's a company. This would be a great way to start with bigger better clients.

Michael, I'm assuming that the reason you doubled your post is because you are practicing advertising yourself as a company and as an individual? '-)

 

[Michael Frymus]

Michael, I'm assuming that the reason you doubled your post is because you are practicing advertising yourself as a company and as an individual? '-)

LOL. Exactly! :thumbsup:
thanks. I fixed it.

For my production company, Id like to find bigger/better clients. I haven't worked with big clients personally. Only like locals.
Its so I can expand. But with these clients, Id most likely need to be hiring staff as they'd be bigger more professional productions.

 

[Walter R]

I think creating a LLC with a company name is a logical step for most individuals and the majority of people we work with set themselves up that way. We are in the US, so I don't know anything about laws regarding LLC setup, etc. in Canada, but it is pretty darn easy to do here in Virginia. This gives you the security of the LLC, etc. and some protection for non-company assets and gives you a chance to come up with a name that becomes your brand - with a logo, a website, etc. It says something about you beyond just your name. It is also a brand you can hold onto and grow if you do add people down the road. Kind of like shooting in 4K to "future proof" you're doing the same with your brand.

That said, I wouldn't make things too complicated. People pretty quickly know if you are a big company or a sole proprietor - whether you use your own name or company name. Pretending you are something you aren't is not a way to develop client trust and respect. We present ourselves as a partnership and let people know we have a wide range of talent to call on for any needs that come up. We've worked our way up to pretty big clients. They don't pay for a lot of overhead and they like it that way. But in the end they are hiring the two of us based on reputation and previous work. Setting up a company while sometimes working as an individual, etc. seems like a good way to pay accountants and tax preparers more and suck up administrative time you could use marketing yourself or refining your skills.

Keep it simple, develop a great reel, price yourself appropriately and market yourself in a way that helps you reach the next level of client. Create a LLC if it makes sense, but if it is about growing the business a name change alone probably won't have a big impact.

Well,

Currently when I am working freelance, I work solo. (50-75% of the time). Working solo I work as the dop, camera operator, gaffer, and sometimes direct some stuff. Basically do everything. I don't always edit though.

Working as a production company, I'd be doing the exact same thing. Working solo 50-75% of the time doing the same stuff I would be if I was freelance. Only difference is that I call myself a production company as I offer my services as a package doing everything in one production or I can still do one position on a production.

I'm thinking of it this way... I own this 'company'. I work for them but I also work for myself. Most of the time Id work within my company, but for the odd jobs, Id work for myself.
If a client is looking for a complete package, or a fully crewed set, Id work under my company.
If another company hires me to work as a complete package also, Id probably still consider myself working under my company.
But, if I am job searching and I see someone is looking for a camera operator or a dop a production company to shoot a music video, Id work under for myself since Id be working freelance for another production company who is handling the music video.

So, in a way, I'm still working as a DOP whether it's for my company or for myself.
It means Id need two websites and possibly double advertising, unless if I advertise myself within the company.

I'm thinking about creating the company. No one will really know who runs it, or how many people are involved, or what. It's a company. This would be a great way to start with bigger better clients.

 

[Eric Santiago]

Question, LLC dont apply if you only do business in Canada right?

 

[Walter R]

Question, LLC dont apply if you only do business in Canada right?

Actually, it looks like you can't. In that case I would go with the easiest thing to set up that gives you some liability protection. I stress the simple part, since I know some folks who made things complicated with multiple entities, etc. and later realized it was way more effort than was worth the small additional returns they were getting through the complexity.

 

[Ted Parkes]

Michael .. Talk to your accountant. There are some very practical reasons to Incorporate. Taxes , liability .. although the directors of the company are liable for any debt but your accountant can walk you through the pros and cons and the cost each year of filing Corporate tax returns as well as personal returns. I myself incorporated under my own name. After all I am the Brand and my clients hire me.