Do you love the fun and creative side of the entertainment industry? Are you thinking of starting an entertainment business?
That’s great.
But it takes more than just an idea to start, run, and grow a business. You need to learn how to start an entertainment company and lay a strong foundation for your dream startup.
Don’t worry.
We’ve got you covered.
To help you get started the right way, we’ve put together this comprehensive guide on how to start an entertainment company.
Let’s discuss each step involved in forming an entertainment business in detail.
Step 1: Create a Business Plan
First things first, you should plan ahead and document everything systematically and clearly. This will help you map out the specifics of your business.
You should cover topics, such as:
Which Category Do You Want to Choose?
The entertainment industry covers a large range of business ideas from publicists to event planners, photographers, production houses, and more.
Wondering how to decide on a business idea that is best for you?
Here are some questions to ask yourself when deciding on the type of entertainment business to start:
- Are you an entertainer yourself? Or, will you hire entertainers to work for you?
- Do you want to work alone or hire employees?
- What resources will you need to start this type of business?
- Are you willing to travel?
- Who is your target market?
What Are the Startup and Ongoing Costs of Your Entertainment Company?
If you’re an entertainer yourself, you can start your entertainment business with minimal investment. But if you’re opening a company where others will do the work for you, it will need more investment.
Here are some expenses you should consider while planning your business:
- Workspace and overhead expenses
- State and federal filing fees to register your entertainment company
- Website hosting, development, and domain name cost
- Advertising expenses to reach out to the target market
- Employees’ salaries and other allowances (especially, if you’re hiring performers)
- Equipment buying and maintenance costs
- Travel expenses (if needed)
- Business insurance premiums
How Will You Charge for Your Services?
Most performers can charge based on their popularity – be it actors, fashion designers, stylists, or managers.
When you’re starting out, you should consider your business expenses and the rates that your direct competitors have set. This will help you decide on a reasonable pricing model for your entertainment business. Doing competitive research is a critical step.
Step 2: Choose a Name for your Entertainment Business
The next step in how to start an entertainment company is to name your business.
You should choose a business name that is:
- Unique
- Relevant to the nature of your business
- Easy to read, write, and pronounce
- Easy to remember
- Scalable
- Brandable
At the same time, the business name you choose for your entertainment company should be available to register.
When registering your business name, you need to check its availability in:
- Your state’s business records
- Federal and state trademark records
- Web domain names
- Social media handle names
You should only choose a business name that fits these criteria.
Step 3: Register Your Entertainment Business As a Legal Entity
To start and operate a business legally in the United States, you need to register it with the state in which you want to run the business.
Before this, you have to choose a business structure for your company based on personal liability, tax flexibility, ownership requirements, and other operational needs.
Some of the most common business structures include:
- Sole proprietorship to start your business as an individual.
- Partnership to start a business with two or more owners who will file for the company profits or losses on their personal income tax returns.
- Limited liability company (LLC) to open a company with one or more owners and reduce personal liability.
- Corporation to attract investors by giving them stocks in the company.
Once you choose a structure that best aligns with your business needs, you need to register it with the Secretary of the State’s office.
Forming a sole proprietorship or a partnership involves minimal documentation. But to form an LLC or a corporation, you need to file Articles of Organization or Articles of Incorporation, respectively.
Along with these, you also need to file for an EIN (Employer Identification Number) with the IRS, which will be used for taxation purposes.
There are a lot of nuances in the legal requirements of starting a business, it can be overwhelming and confusing.
Let us help you get through it in a hassle-free manner with our business formation packages.
All you need to do is fill out a simple application. We’ll take care of everything else – expedited processing for state and federal filings and five free essential legal document templates.
Here is a detailed list of what our business startup packages offer and the pricing plans.
Step 4: Obtain Business Licenses and Permits to Start Your Entertainment Company
Based on your business activities and location, you might require some licenses and permits from the state and the federal government.
For example:
If your entertainment business broadcasts information by radio, television, wire, satellite, or cable, you will need to obtain:
- IBFS Licensing System
- Amateur Radio Service Licensing
- FRS/GMRS Dual Service Radios
- Universal Licensing System for wireless services
Here is another important point to note:
You should check with the state whether your business licenses and permits will expire after a certain amount of time. If they have an expiry date, you should keep track of it and renew them on time.
Not having the required business licenses and permits for your entertainment company can lead to hefty fines.
Step 5: Open a Business Bank Account
Moving on to the next step, let’s discuss how to open a business bank account for your entertainment company and why you need it.
Opening a business bank account allows you to separate your business and personal finances. It also helps you stay legally compliant and protected. Moreover, many banks offer special benefits to companies and their customers and employees.
To open a bank account, you’ll need to submit:
- Your federal EIN/Tax ID
- Your business formation documents
- Ownership agreements
- Business licenses
Once you’ve got a business bank account, you can also apply for a business credit card to finance your entertainment company.
This can help you improve your credit history and make it easier for you to attract investors later.
Step 6: Build a Business Website & Social Presence
Having a website will allow you to build an online presence for your entertainment business. You can attract consumers and help them learn about your company and the products or services you offer.
You should also create official business accounts on the top social media platforms. Posting relevant content consistently can help you reach, attract, and engage more people. This will eventually increase the chances of conversions.
Ready to Take the First Step to Form an Entertainment Company?
Now that you’re aware of the process, it’s time to take the first step towards starting your own entertainment company.
Choose a niche, finalize a business name, decide on your business structure, and form a legal entity. Then you can choose your vendors, build a powerful team, and get started.
The key to running a successful entertainment business is hard work and striving to build a name for yourself in the industry.
Do you have any questions about how to start an entertainment company? Feel free to ask them in the comments below. We’ll be happy to help.