3
SETTING UP THE PRODUCTION COMPANY
The first step in forming a production company is often to create a business entity,such as a limited liability company (LLC), limited partnership (LP), or corporation. There are many advantages to setting up a business entity:
- Yo u can divide the financial risk among several people. The members, partners, or shareholders of a business share in the company's profits and losses.
- Your company is considered a legal person and as such can enter into contracts, bring lawsuits, and hold intellectual property rights, such as the copyright to a film.
- Yo u can separate your personal finances from the company's finances.
- You may die someday, but your company doesn't have to. Some kinds of busi- nesses can last ...
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