 I’m not a lawyer, but I get a fair amount of questions about the legal structure of a Production company and a film. So I thought I would write a blog about how I’ve learned to structure each individual entity, as well as the benefits and drawbacks of each choice.
Generally, you’ll want to have one legal entity that exists as your production company, and one legal entity for each project you produce. Generally, your production company will be a general partner in each project, and when each project has run it’s course, the entity will be dissolved. If you’re producing episodic content, you can probably get by with one entity per season. 
I’ve been quoted as saying that investors get the short end of the stick in film investment. They end up putting up all or most of the money, and then are often left with their hands out. They’re the last to get paid on the production, and the system is structured in such a way that it’s almost Impossible to create a sustainable investor class.
I wrote an entire 7-part blog series on WHY film investment is in the tubes, so I don’t need to do that again. This blog will focus on exactly what I mean about investors being the last to be paid, when filmmakers don’t get any profit share until after the investors have recouped. The answer to this question lies in the standard distribution waterfall |
AuthorMy name is Ben, I'm an Entrepreneur, Producer's Rep, and Author. I'm the founder of Guerrilla Rep Media, Co-Founder/CMO of ProductionNext, and founder of Producer Foundry. Together, the organizations seek to help make filmmaking a more economically sustainable endeavor. I am dysic, I have capitalization issues, and the blogs are often unedited. opinions all my own. 
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