How to start a production company in 2026

There is no production-company license — there is the city's film permit, the certificate it names, and the federal layer. In the US no state read licenses a production company; the Texas Film Commission says it in as many words: "Texas does not require a license to operate as a game company or film production company;" (Texas Film Commission, Starting a Business). What is federal: the drone — a remote pilot certificate for anyone who will fly one for pay, "(a) Be at least 16 years of age;" and "Pass an initial aeronautical knowledge test" (14 CFR §107.61); "No person may operate a small unmanned aircraft over a human being unless—" the person is a crew member, under cover, or the flight meets an operational category (14 CFR §107.39); at night, the pilot "has completed an initial knowledge test or training" and the aircraft carries "lighted anti-collision lighting visible for at least 3 statute miles" (14 CFR §107.29). The footage: "A “work made for hire” is—" "a work prepared by an employee within the scope of his or her employment; or" a commissioned work "as a part of a motion picture or other audiovisual work" "if the parties expressly agree in a written instrument signed by them" "that the work shall be considered a work made for hire." (17 U.S.C. §101) — the sentence that decides whether a freelance cinematographer's footage is the company's; this guide explains that the instrument must exist and does not draft one. Registering the finished film is "Standard Application $65" — the "$45" tier is "Single author, same claimant, one work, not for hire", which a crewed company film is not (U.S. Copyright Office, fees). And the EIN: "You never have to pay a fee for an EIN." (IRS).

The entity — one, not one per film. "for filing a certificate of formation, $300" in Texas (Tex. Bus. Orgs. Code §4.152); "For filing original articles of organization or articles of revocation of dissolution, $100." plus $25 for the registered agent and $50 for the annual report in Florida (Fla. Stat. §605.0213); "two hundred dollars." in New York (N.Y. LLC Law §1101) plus a notice "once in each week for six successive weeks" "in two newspapers of the county in which the office of the limited liability company is located" (N.Y. LLC Law §206); "Seventy dollars ($70)" to file and "Twenty dollars ($20)" for the statement of information in California (Cal. Gov. Code §12190), plus the annual tax at the amount in section 23153 (Cal. Rev. & Tax. Code §17941) — "a minimum franchise tax of eight hundred dollars ($800)." (§23153). Page one's advice to form one entity per production costs $890 a year per entity in California — our arithmetic from the three statutes — which is the plain reason to keep one company until there is a feature with investors to wall off. The California Film Commission's own "Starting a Film Business" page is a list of links to the state's business portal and the permit pages, not a rule (California Film Commission).

The film permit, city by city, in the office's own words. Texas: "there is no “blanket” permit to produce content." and "the Texas Film Commission does not issue permits"; on private property "a film permit is not needed; permission from the property owner in the form of a valid location agreement is required."; on public property "permitting will typically be administered at the municipal level" (Texas Film Commission, Permitting Overview). Austin: "The City does not require a universal film permit to film in Austin;" — "Right-of-Way film permit applications must be submitted 3 or more business days in advance", parks "7 or more business days", "Yes, insurance is required except for student filming." and "No rental/reservation fees for filming on City property" (City of Austin, Film Production in Austin); Houston's parks form prints "Filming / Photography Reservation Fee $154.42 Per Park Per Date" (Houston Parks and Recreation). Florida: the state office names St. Pete-Clearwater "with no film permit fees." and a "regional 10-20% cash rebate program" — there is no statewide cash rebate or tax credit today; the state's incentive is the sales-tax exemption below (Florida Office of Film and Entertainment); Miami-Dade: "There is a $150 permit application fee which you can pay online with a credit card." — "$150 per permit per 28 days, which covers Miami Beach and Miami-Dade County and several other Municipalities." (Miami-Dade Office of Film and Entertainment, FAQ). New York City: standing on a sidewalk "while using a hand-held camera" "is NOT an activity that requires a permit."; once there is equipment — "anything more than hand-held camera, camera on tripod or hand-held items" — or parking for production vehicles, "For each consecutive 14-day period (or portion), the non-refundable fee is $500." (NYC Mayor's Office of Media and Entertainment, When a Permit Is Required). Los Angeles: "Permit Application Fee" "Up to 5 Locations, 7 Consecutive Days" "$931", a rider "$148.75" in business hours and "$208" after, a "Notification Fee" "$232", a monitor "$44.50" an hour (FilmLA, Basic Fees List, October 20, 2026); FilmLA's board "elected not to increase any FilmLA service fees for fiscal year 2026/2027" (FilmLA, July 6, 2026). The State of California's own permit is "Free", but Caltrans monitors are "$181.00 / hour", a CHP officer "$133.51" an hour, a state park's review "$100.00 / day" for a simple production and "$250.00 / day" for a complex one (California Film Commission, State Permit and Monitor Fees, November 4, 2025). Georgia: "The Georgia Film Office does not issue filming permits." and "some municipalities have shooting requirements and charge a nominal fee." (Georgia Film Office); Atlanta's schedule prints an "Application fee" of "$100", a "Filming permit fee" of "$300 per calendar month", a rush "Additional $300" and "$100 per location per day" for on-site services (City of Atlanta, Mayor's Office of Entertainment, fee schedule).

The certificate — what every city asks to see. New York City: "You must maintain CGL insurance of at least $1,000,000 per occurrence in the name of the entity requesting a film permit.", "the company name in the application must match the named insured’s name in the CGL insurance policy." and "The Film Office will not accept proof submitted from someone who is not a broker or agent." (NYC Mayor's Office of Media and Entertainment, Insurance Requirements). Miami-Dade: "a $1 million dollar general liability insurance certificate naming the County and/or City as additionally insured." (Miami-Dade, FAQ) — "naming that jurisdiction as additionally insured." (Miami-Dade, insurance information). The State of California: "General Liability coverage in the amount not less than $1,000,000 for each occurrence." naming "the State of California, including its officers, agents and employees.", "State law requires companies provide proof of worker's compensation coverage." and, if vehicles are filmed, auto cover "not less than $1,000,000 for each accident." (California Film Commission, Insurance Requirements). Los Angeles's own certificate rule sits in the city's risk document, which refused a reader today — described, not quoted.

The crew — payroll or 1099, and workers' compensation by state. California's test: "In general, workers are considered employees unless they meet specific criteria below." — the worker must be free of the hirer's control, must perform "work that is outside the usual course of the hiring entity's business.", and must be "customarily engaged in an independently established trade" (California EDD, AB 5); a day-hire camera operator does a production company's usual business, so in California the crew goes on payroll. Workers' compensation: "All California employers must provide workers' compensation benefits to their employees" (California DIR, 2023); in New York "Virtually all employers in New York State must provide workers' compensation coverage for their employees" and it "is required for sole proprietors with employees," (NYS Workers' Compensation Board); in Florida "Employers with four (4) or more employees, including business owners who are corporate officers" must carry it (Florida CFO, Coverage Requirements); in Georgia "The law requires any business with three or more workers, including regular part-time workers," "to have workers' compensation insurance." (Georgia State Board of Workers' Compensation, 2023); in Texas "an employer may elect to obtain" it (Tex. Labor Code §406.002).

The sales-tax inversion — production is exempt in four states, each a different way. Texas: "a producer or production company may claim a sales or use tax exemption on items or services" "necessary to and used or consumed directly during the production of a project intended for commercial distribution." — and "not eligible for productions not sold to the public.", the examples "wedding videos and videos shown on social media" (Texas Film Commission, Sales Tax Exemptions); the statute exempts property "necessary or essential to and used or consumed in or during:" "the production of a motion picture, video, or audio master recording, a copy of which is sold or offered" for sale, license or broadcast (Tex. Tax Code §151.3185). Florida: a "qualified production company" that "has operated a business in Florida at a permanent address for a period of 12 consecutive months" "shall receive a single 1-year certificate of exemption from the Department of Revenue.", and a new company a "single 90-day certificate of exemption" for one project (Fla. Stat. §288.1258). New York: "A film producer must register for New York State sales tax purposes to claim exemptions from sales tax." and may buy or rent exempt "machinery or equipment" "used directly and predominantly in the production of a film for sale." — but "The exemptions for tangible personal property do not apply to property used in administrative activities," (NYS Tax Department, TB-ST-276, 2012, updated October 16, 2026). California: "Tax does not apply to charges for "qualified production services" performed by any person in any capacity" on a qualified motion picture — and "Tax applies to rentals of tangible personal property as explained in Regulation 1660." (CDTFA, Regulation 1529): the services and the delivered picture are not taxed, the camera package the company rents is. Georgia's route is the credit: "The Film Tax Credit is a 20% based transferable tax credit" with "an additional 10% tax credit" for the state's logo, and "The $500,000 annual minimum can be met with one project or the total of multiple projects" (Georgia Department of Economic Development, Production Incentives) — "Stable incentive since 2005." (Georgia Film).

The union agreements — explained, never drafted. The union's own independent-film program prints the tiers: a Micro-Budget Project Agreement at "$20k (per picture or per episode)" where "Terms and salaries are fully negotiable", a Short Project Agreement at "$50k", an Ultra Low Budget Project Agreement at "$300k" with a "$257" minimum day rate, a Low Budget Theatrical Agreement at "$2MM" with a day of "$834" (SAGindie, Become a Signatory, rates through June 30, 2027); the micro-budget route is for "Budget of $20,000 or less (per picture or per episode)" and excludes "Commercials," "Music videos," and "Branded/Influencer Content," — "this Agreement does not create eligibility to join the union." (SAGindie, December 18, 2020); the short project "has a $50,000 budget cap." and "allows a maximum runtime of 40 minutes" (SAGindie, August 2, 2018). The crew union's low-budget theatrical tiers start at a budget of "no more than $3,300,000" (GreenSlate's summary, March 4, 2026) — above every job in this guide's model; a company's commercials fall under a separate commercials contract the union's site would not show a reader today.

The money, from the vendors' own pages. The policy: "Short-term film productions have policies that start around $390 and increase depending on the factors we discussed above." and "They're flexible and can include one day of production, or up to one year."; an annual policy "$1,450 to $2,500 or more.", and rental houses may require "a $250,000 to $500,000 minimum coverage." on the rented gear (Athos Insurance) — the annual form covers general production liability, rented and owned equipment, non-owned auto and the cast and crew, and "Depending on the types of productions you make, you may need only one or multiple lines of insurance coverage." (Athos, Annual Production Insurance). Insureon's medians: "Video and film production studios pay an average of $40 per month, or $485 per year, for general liability insurance", "a business owner's policy typically costs $55 per month, or an average annual premium of $663.", workers' compensation "$56 per month, or $676 annually.", professional liability "$77 per month (or $926 annually)" and the equipment "$43 per month, or $519 per year" (Insureon, updated April 30, 2024); for photo and video businesses generally, general liability "$29 per month, or $350 per year" (Insureon, updated February 24, 2026). The package: a Sony FX6 "$273.00" for three days, "$390.00" for seven and "$1151.00" for thirty (Lensrentals); an Aputure 600d kit "$164.00", "$215.00" and "$547.00" (Lensrentals); a Sachtler aktiv8T tripod system $211, $291 and $810 (Lensrentals) — $648 for a three-day package and $2,508 for a month, our arithmetic; the vendors' planning range puts "standard camera packages rent for $500 to $1,500 per day" (Vidico, September 21, 2026). The crew, by role: a director of photography "600 dollars", a camera operator "350 dollars", a gaffer "350 dollars", a grip "300 dollars", a production assistant "200 dollars" as one studio's minimum day rates, with a two-person interview crew that "start at 1,000 dollars a day" and a two-camera corporate shoot that "commonly lands between 3,000 and 6,000 dollars" (C&I Studios, October 1, 2026); a DP "$800 to $2,000 a day depending on experience", a gaffer "$400 to $1,200", a sound mixer "$400 to $900", a standard corporate video "$3,500 to $15,000" and a 30-second TV-grade commercial "$25,000 to $80,000" at a Southern California company (Tidal Media Co., September 3, 2026); a crew-booking company's card — Director of Photography "$900 - $2,400 / day", Camera Operator "$500 - $900 / day", Production Assistant "$200 - $350 / day", on a "Standard 10-hour production day." with hours beyond ten "billed at time and a half" (Assignment Desk, 2026); "Director: $800 to $2,500 per day." and "A finished minute of corporate video costs $1,000 to $5,000 for standard professional work." (Vidico, September 21, 2026); for non-union low-budget work "the cinematographer day rate ranges between $1000 and $1800 per day." and "the only protection you have in terms of non-union film crew rates is the minimum wage of applicable state law." (Assemble). The budget shape: "'Above the line' individuals guide the artistic direction — directors, producers, screenwriters, and principal actors." and "'Below the line' refers to crew members who bring the vision to life" (StudioBinder, December 3, 2023); "Set aside 10% of your budget for unexpected issues" (Wrapbook, September 16, 2021). The deposit: one company's own terms — "A minimum 50% deposit is required to start any project." (LiveUP Media, April 2026); on agency commercials "the first 50% pays the film company and the talent." and "the production house is not paid their final 50% until the advertiser actually pays the agency" — "this can be up to 90 days" (TrinityP3, 2012, updated 2023); card fees on the deposit "Standard card payments are 2.9% + 0.30 USD in the US" (Stripe). The software: DaVinci Resolve Studio "Was $295 Now $236" with a free version (Blackmagic Design); Frame.io Pro "$15" "per member" a month with "Up to 5 members" (Frame.io); Adobe's plan page would not print a US price to a reader today (Adobe). Music: the plan that covers client work is the Business tier — "Perfect for production companies, agencies, brands, and non-profits." — and the one that covers broadcast and festivals is Enterprise (Musicbed); the other two subscription services would not print a price to a reader today. The office, if one: Dallas asking rents "reached $34.14 per square foot (psf)" (Cushman & Wakefield, Dallas/Fort Worth Office, Q3 2026), Houston "$32.08 psf" (Houston), Atlanta "$34.20 per square foot (psf)" (Atlanta), Miami "$67.77 per square foot (psf)" (Miami), Manhattan "$74.37 psf" (Manhattan), Los Angeles "$3.70 psf per month on a full-service gross basis" (Los Angeles) — a 500-square-foot office runs $1,423 a month in Dallas and $3,099 in Manhattan, our arithmetic, with vacancy of 18 to 25 percent in five of the six metros; a dedicated coworking desk starts "from $247/desk/mo" (WeWork). The gear the company still buys is the videography guide's list and is not repeated here.

In the UK: a limited company "costs £100 and can be paid by debit or credit card." (GOV.UK); VAT registration is required above £90,000 of taxable turnover (GOV.UK); crew engaged through their own companies fall under the off-payroll working rules — "a worker who provides their services through their own intermediary to a client" (GOV.UK, IR35, February 26, 2026); the Audio-Visual Expenditure Credit runs "on expenditure incurred from 1 January 2024" at 34 percent for film and television, 39 percent for children's and animated work and "53% on independent films", for work "certified as British" (GOV.UK, February 19, 2026); in London each of the 33 boroughs has a film service for its locations and "All filming also requires public liability insurance," (Film London, Get Permission) — "a minimum of £2 million cover for street filming and photography" and "In some areas you will be required to have at least £5 million." (Film London, Media Insurance). In Australia: "It's free to register for an ABN" (business.gov.au); register for GST "if you expect your GST turnover to reach $75,000 in the first year." (business.gov.au); "A permit is typically needed for any filming or photography carried out on City of Sydney land." — a low-impact shoot's application fee is $100 and its approval fee $180, with public liability of $10 million for short films and documentaries and $20 million for commercials and dramas (City of Sydney, 2026–27 fees); "Filmmakers should expect to provide public liability cover for $20 million in most cases." (Screen NSW); the federal producer offset's pages refused a reader today — described, not linked. Permit fees, insurance limits and the exemptions change every budget year — check your own state's and city's film office before the shoot day, and confirm your own state's rule with your accountant.