3 Main Business Models - Filmmaking

March 13, 2018

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


Let´s have a look on each model a bit in detail.



Sole Trader



Like a Sole Trade you are responsible for yourself, for whole your business. Any success or also mistakes

or doubt is just your responsibility. You can operate with your Tax File number but also you have to be registered as an ABN and therefore a GST registration. Sole Trade is the easiest business model.



Minimal set up cost

You are your own boss - independent

All profit is your

Cheap and simple

You don't pay payroll tax

No limitis



All doubt and mistakes is just your problem - bankrot

Limited finance access

You are personaly responsible for everything in your business, you can´t share it whit others.







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.

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