Before you record your first scene as an independent filmmaker, you should know some basics about the law and how to protect your rights. Although there are certainly other legal concerns, the two major areas that you should be concerned about from the get-go are your business structure and your intellectual property rights.
What follows is a short guide on these legal issues to help you as you pursue your filmmaking dreams.
Business structure for independent filmmakers
When starting any new venture, the first question an entrepreneur faces is how to organize the business structure; the same goes for independent filmmakers when setting up a production company.
Generally, for a film production company, you are best advised to set up an entity that will not only divide economic risk, but also allow you to separate your personal finances and responsibilities from those of the company.
Although you may choose a sole proprietorship (just you, no special paperwork required to start), it is not generally advisable for a production company as you cannot spread risk or limit potential liability; that is, if your business ends up owing money, you could be held liable from your own personal assets.
Along the same lines, although a general partnership (you and one or more partners, usually via a partnership agreement) is easy to form because you don't have to file papers with the government, you are not automatically protected from personal liability and can be held responsible for your partner's (or partners') business debts as well.
Accordingly, there are three main types of business structures that an independent filmmaker should choose from:
- Limited partnership (LP): An limited partnership is similar to a general partnership in that two or more people agree to form a working group, but in an LP there must be at least one "general partner" who is jointly and severally liable for the LP's debts and liabilities; the rest of the partners can be "limited partners" with limited liability.
- Limited liability company (LLC): An LLC is owned by its members, who are not personally liable for the LLC's debts and liabilities. Taxation occurs on the individual member level (the same as in a sole proprietorship, general partnership, and S Corp., below). This is an increasingly popular option for film production companies.
- Corporation (S corp, C corp): A corporation is owned by stockholders or shareholders, who are not generally personally liable for the corporation's debts and liabilities. An S corp can only have 75 stockholders or fewer, while the number of a C corp's stockholders is unlimited, but the latter is subject to "double taxation" (first on the corporation, then on the individual level).
These may not cover the only considerations in your specific situation, however, so it is important that you receive sound legal advice on this point before choosing a business structure for your filmmaking company.
Intellectual property rights
"Intellectual property rights" refer to property rights over creations, including screenplays, motion pictures, sound recordings, and more. The types of intellectual property rights most important to independent filmmakers are those concerning copyright, which gives the copyright owner the rights to reproduce, adapt, arrange, perform, display, distribute, or sell copies of the work, among other things.
Gaining a copyright over a screenplay is simple in that you only must put the idea into tangible form (typing or writing it will do); however, unless you have registered the copyright with the U.S. Copyright Office, you will not be able to bring a lawsuit for damages in the event of infringement. A registered copyright is generally valid for 70 years beyond the life of the author or from the death of the last living author (if there is more than one).
Another note regarding copyright and filmmaking: you should be certain not only to protect your own work, but also to make sure you're not infringing on the copyright of others as you begin a project.
Other legal issues to consider
Remember that as an independent filmmaker, you are likely to encounter many other legal issues as well, particularly those regarding contract and employment law, so be sure to consult an experienced attorney to help guide your decisions—and remember that LegalZoom can help you if you are ready to set up your business and/or protect your work through copyright.
Find out more about Starting a Business
FAQs
Well, generally it's the production house that owns rights to a movie. However, a film can also be financed by an individual or a separate studio, in which case, these entities would own the rights to that movie. Many a times, the studio outsources the work to another production house based on a contract.
Do I need an LLC for my short film? ›
The key reason to incorporate or form a LLC is liability protection. If you have no assets to risk, there's very little to protect, and virtually no reason to incorporate. In fact, a corporation won't even provide liability protection unless it is adequately capitalized.
How much do independent filmmakers make? ›
How much does an Independent Film Director make? As of Apr 13, 2024, the average annual pay for an Independent Film Director in the United States is $70,041 a year. Just in case you need a simple salary calculator, that works out to be approximately $33.67 an hour. This is the equivalent of $1,346/week or $5,836/month.
What makes an independent filmmaker? ›
The definition of what constitutes an independent production can be somewhat muddled, but the most defining trait of an independent film is that it is produced and distributed outside the “major” film studio system.
What qualifies as an independent film? ›
An independent film, independent movie, indie film, or indie movie is a feature film or short film that is produced outside the major film studio system in addition to being produced and distributed by independent entertainment companies (or, in some cases, distributed by major companies).
How do you copyright an independent film? ›
Copyright Office website and click on Forms. Complete the form(s) on your personal computer, print them out, sign and date them, and mail them with a check or money order and a deposit. Blank forms can also be printed out and com- pleted by hand or requested by postal mail (limit two copies of any one form by mail).
Can I use brand names in my short film? ›
Trademark owners may object to the use of their trademarks in fictional films or other media productions without their consent, and seek to enjoin such uses by filing a trademark infringement action under section 43(a) of the Lanham Act (15 U.S.C.
Do short films make money? ›
Is It Wise To Look At Money While Making Short Films? Short film creators can generate money, but the answer depends on how strong your script is and what medium you use to distribute your film. Creators should not expect to sell it to platforms like Netflix or Disney because that's only going to bring disappointments.
Can I use stock footage in my short film? ›
Stock footage can serve as a versatile and budget-friendly video asset when producing a short film. With a wealth of high-quality clips available covering a wide array of subjects, stock footage allows you to add production value without shooting everything yourself.
What is the average budget for an independent film? ›
For Indie films, the average budget can typically range from $500,000 to $5 million. This statistic states that for independent films, the typical average budget falls within the range of $500,000 to $5 million.
How likely is it for an indie film to become profitable? Statistically speaking, the picture is quite bleak – 97% of independent feature films fail to turn a profit. Most filmmakers assume they will be in the lucky 3%, not realizing that turning a real profit with a low/micro-budget film is practically unheard of.
Who is the highest paid filmmaker? ›
Here are the top 13 film directors in the world in 2024, according to CelebrityNetWorth.
- Steven Spielberg. Topping the list of wealthiest film directors is Steven Spielberg. ...
- George Lucas. ...
- Peter Jackson. ...
- Tyler Perry.
By “first time filmmaker”, they mean someone who is in the early stage of their documentary career and has not yet received significant recognition.
What is considered an independent director? ›
An independent director is a member of the board of directors who (1) does not have a material relationship with the company, (2) is not part of the company's executive team, and (3) is not involved with the day-to-day operations of the company.
Can you be a filmmaker without social media? ›
Being a great filmmaker is not something you do alone - you need the community around you. Staying inspired, knowledgeable and competitive are key to being successful in this industry, and there's no better place to do that than on Instagram.
Who holds the copyright of a film? ›
A copyright owner is the individual or entity that holds the exclusive rights to a particular work or piece of content. In the film industry, this is typically the producer, unless there's a specific agreement that designates copyright to another party, such as a director or scriptwriter.
Do authors keep film rights? ›
The book's author owns the movie rights unless they sell the rights to someone else. They usually have a website where you can find an email address. If the author is from the United States, you can also find them via The Writers Guild of America.
Who is the copyright owner of a film? ›
Ownership. Copyright in films is generally owned by the person who arranged for the film to be made, (i.e. the producer, the production company, or the person or company who commissioned the film) unless there is an agreement to the contrary.
Do directors own the film? ›
Generally, the sole superiors of the director are the producers and the studio that is financing the film, although sometimes the director can also be a producer of the same film.
