ABSTRACT
The first step in forming a production company is often to create a business entity, such as a limited liability company, limited partnership, or corporation. Keep in mind that an employer, such as a production company or producer, is generally legally responsible for the actions of its employees and agents performed during the scope of their duties. Some business entities, such as the sole proprietorship or the general partnership, do not require any legal formalities to start up. A general partnership may be formed when two or more people work together to own and operate a business for profit. A joint venture is a special type of general partnership, one formed for a particular and limited purpose.
