Making a Short Film: Should You Start a Limited Company? (Pros & Cons)
If you’re planning a short film — or you’re already deep into one — you might be wondering whether you should actually start a limited company for it.
It sounds professional. And honestly, I used to wonder if that was something the proper way to do it.
But once I did it myself, I realised the decision isn’t as simple as “yes” or “no.”
It really depends on your budget, how long your film will take to complete, and what you're hoping to do with it afterward.
In the video for this post, I break down the pros and cons exactly as I experienced them.
⭐ PROS OF STARTING A LIMITED COMPANY (FOR FILMMAKERS)
One really interesting benefit (something a lot of new filmmakers don’t know) is that setting up a company can make you eligible for certain UK film tax credit schemes.
This isn’t “funding,” but if you meet the requirements and keep proper records, you could get a percentage of your qualifying production spend back later.
And that can actually boost the money you have available for the later stages of the film’s life: things like marketing, festival submissions, a small online ad campaign, maybe even finishing costs.
It’s basically a way of stretching your film budget further after you’ve already spent it.
⚠️ CONS THAT FILMMAKERS OFTEN OVERLOOK
Setting up a limited company costs money.
Depending on your budget, that may not seem like much, but when you’re making a short film, every pound matters.
And it’s not just the setup fee.
Running the company means annual costs, accounting fees, and making sure you're compliant.
All of that money has to come from somewhere… and you want to make sure it doesn’t come out of your film budget.
If your short film is already tight financially, starting a company might reduce how much money you can put on screen.
🎬 SO… SHOULD YOU START A COMPANY FOR YOUR SHORT FILM?
This is the big one, and honestly, it depends on two things:
How large your budget is, and
How long the project will take from start to finish
If you’re working with a very small budget and shooting/completing the film takes more than a year, a limited company might do more harm than good financially.
But if your short film has a decent production budget, or if it’s a project that will be completed quickly: then the ability to access tax credit later could really help.
Everything comes down to whether the benefits outweigh the costs for your specific film.
If you want the full breakdown and a clearer sense of what to think about, I walk it in the video.
🎥 Watch the full video here:
👉 https://youtu.be/btzG4rgrcxc
