What a film production company does exactly is the production of films. Essentially they make movies. So ?LucasFilm? is the company that produces movies and ?ILM? is part of that company - the part the does the effects.

As the owner of the business you can do what ever you want under each name. There are no rules. If you want to create a company that does effects and then create a division that makes movies, you can do that. If you want to create a company that makes movies and then a division that does effects; you can do that. If you then want to add a division that does post production sound (see Skywalker Sound) you can do that. If you then want to create a division that creates games (see LucasArts) you can to that.

As the owner you are only limited by your imagination. Well, a little money is involved, but you can start a company that does anything you say it does - and then create divisions of that company that does anything you want them to do.

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The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert, essayist (1754-1824)

That is excellent news, thank you instigator. I was thinking you'd have to go through this entire complex system to get a working company like LucasFilms and ILM. Luckily you don't have to, that makes me very happy at the moment.

One question though, you say i can make a company and then do whatever i want with it. Like have divisions under that company. Now, do i have to register for another company to be a division under that one major company with the government, or do i just simply create that 'division' in the company itself without any registeration?

If it's the latter, that'd also be awesome. Cause that would be a huge money saver. Registering for a company in Canada, costs a couple hundred bucks. My guess is, is that you can just create a division under your major company without registration. But of course you'll have to pay and register for things such as 'trademarks' and what not.

Hope to hear from you soon, later! and thanks again for your help.

Now I gotta bow out. I don?t know anything about business law in Canada.

I suspect you?re jumping way ahead of yourself. Look to LucasFilm as your model. He started ILM first - to do the effects for Star Wars. Then when he had the money he created LucasFilm - to produce Empire. Then when he had more money and there was a need, he created all the other divisions.

No need for you to have several divisions of your company if your first division isn?t making enough money to support another one.

Start your production company. Do the effects and sound and everything else under that name. When you have made a couple of successful movies, a couple of hundred bucks to create a ?VFX? company won?t be an issue.

Ah ok, i guess that's what i'll do. I thought George Lucas made Lucasfilms and ILM at the same time. Knowing that he made his VFX company first then Lucasfilms is a good thing. I'll probably start a VFX company first, since my film is heavily involved in visual effects. I always wanted to start a vfx company anyways, only recently i was thinking about creating a film production company (cause i thought i needed one). Now that i know i don't need one, I guess i'll stick with the vfx company and work my way up.

And i don't think the business law in canada and us is a whole lot different. I've read through a lot of the business stuff on both countries, and there almost the same in general, just some differences here and there.

But again, thanks for the help instigator you've been a huge help.

I agreed with everything certified instigator has said, but I just thought I'd weigh in with some additional advice.

At this point in your career, I wouldn't worry too much about trying to get some kind of complex corporate group structure set up. As you rightly note in your original post, this simply adds additional administrative costs to the process, without adding any real benefit.

I'd suggest you start by writing a business plan for a single company, identifying the areas you want the company to work in, and where the money to fund it all is going to come from. If your company is successful and grows, you can then investigate the most effective way to structure your operations, which might include "divisionalising" or forming a group structure a la Lucasfilm.

Ben C.

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filmmaking.net
(Incorporating the Internet Filmmaker's FAQ)

Please note the opinions expressed here are those of the author only and do not constitute legal advice. The author cannot accept and liability whatsoever for inaccurate or outdated information contained within.
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Hey,

I found your advice for devilry both acurate and helpful and would like to ask another question: I have written 2 screenplays that are both set in North America and that have been reviewed and labeled as very interesting by two of the best-known German producers, but in the end they both failed to be greenlighted. I think they have a lot of appeal both for the European and American audience. Besides from being a part-time screenwriter I am an economist with some assets to spend and 24 hours a day that I would be willing and happy to invest into the making of one of these scripts into film. However, my experience in Germany is that they say no because the scripts are set in Canada / the U. S. and in the U. S. agents or studios just keep hanging up on me, supposedly because they have their own 500.000 screenwriters with attractive projects waiting in line. My question is: Does anyone have any good advice for someone like me that is really dedicated to making a film of his script and that is also able and willing to spent part of his own assets and time into such a project?

Best regards,

Mike

Hi, I guess I'll chime in here too! I've been in the music business for over 15 years. I've always wanted to be in movies so I was a movie extra for a full 3 years of my life. Now, that I've been on the set of many big films and T.V. shows, I feal like it's my turn to make a movie. I've only written 3 scripts in the last 5 years but my latest script is dear to me and I'm determined to make it. My favorite moto in life is from the Nike Commercials.... "Just do it" so I will. Good Luck My Brother. http://www.super-natural-films.com ?8D?

Best Regards,
Midimark
http://www.super-natural-films.com