In nowadays we have a three main business models what could be applied in Filmmaking industry. Sole Trader, Partnership and Company. Each of them has set up different rules and condition. Depend on us what are our goals, how big and expensive business we wanna have and based on our ideas we should be able to choose the most sutable business model
Partnership can exist at least between 2 people, maximum between 20 people. All members are running business together and they are responsible to each other. Basicaly everyone is Manager to each other. All profit is together and also all mistakes are shared together. Everyone should set up own part of the business, but still with responsibility for each other. Comunication is very important in this business model.
You share responsibility with others.
Easy and still pretty cheap to set up.
Set up clearly terms and conditions.
Describe job descriptions of each parther and set up consequences when one of them leave agreenment.
Each partner is as agent to each other
For all mistakes and doubt are responsible all of them
Some filmmaking companies don´t provide founding to a partnership
Company is another way for a group of filmmakers. It´s also good choice for a solo filmaker who want reduce the risk of personal liability connect with operating as a sole trader. A company is a legal entity incorporated under the Corporations Act 2001. Company have to have director who is responsible for all activities. These activities of company must include compliance with accounting standards and financial reporting obligations.
Set up by shareholders
Reduces risks of personal liability
Profits can be reinvested in the company
Shareholders are sheltered from business risks
Only director o´f the company has duties under the Corporation Act.
Establishing is more expensive than two previous business models.
They have to have separate company who carre about the comapny money - more costs
Director is personaly exposed. He is a face of the company.