Film Production: Should I license separate LLCs if I want to develop both commercials & feature films and have them under different brands?
I'm currently in development of launching a small film production company for commercials/corporate videos but I have the intention, within several years, to focus on producing feature films. I'd like both these to have different but similar brands. Does it make sense for me to use both brands under the same LLC ("doing business as" ) rather than licensing two separate companies: one for commercials and one for features.
What problems/benefits might I foresee down the line for each route?
*Looking for answers from those who have filed LLCs and may be familiar with "Doing Business As" situations.
- SlumlordLv 76 months agoFavorite Answer
The typical reason to have multiple LLC's is to reduce exposure of the assets in the LLC. IE If you have 2 million is assets you may put half in one LLC and half in the other and if a problem came up, only 1 million (the money in the LLC where the problem came up) would be at risk.
In your case, however, you are starting to kinda different companies but not so different that you know whether you should split it into 2 actual companies, or not. So, its a judgement call but my best advice is that it really costs very little to run 2 LLC's versus 1 so if you aren't worried about a bit more bookkeeping and effort then go ahead and split them. No other reason not to.
- hamel5Lv 76 months ago
Seems like a needless complication. If you start a production company and are lucky enough to make any money at all , you just go wherever it takes you.