Solicit funds from investors if you don't have the money to start a film business for yourself. There will be a lot of expense incurred if you don't seek the funds ahead of time. Many independent films have been financed out-of-pocket or on a credit card, but measures such as these are not recommended. If you seek financial support from companies and other people you don't know, you need to register with the United States Securities and Exchange and follow their rules and guidelines (see resources). If you're seeking money from family and friends, registration with SEC isn't required.
You can consult a directory of parties interested in financing film companies (see Resources). If possible, have a script to show when you seek financing. While it isn't necessary, marketing your film company will be easier if you have a promising screenplay lined up, especially if you have acting or directing talent attached to the script.
Seek legal advice from an entertainment attorney immediately. Your local library may carry books that can point you toward legal attorneys. You might get a referral from another attorney. You can also consult an online database free of charge (see resources). Whatever you do, be sure you have an attorney who specializes in the entertainment business. He will help you draw up all of the contracts you'll need for investors, actors, directors and any distribution or other business forms. Your attorney will help you determine if you want to set your company up as a limited partnership, a limited liability company or a corporation.
Set up a main office. You may have to wait for financing to come through if you don't have a little start up capital, since you'll need office furniture, equipment, and at least a bare bones staff. Consider Nevada as a place to form your corporation's home office, regardless of whether you live there or not. The taxes are lower, you don't need to be a resident, and because Nevada business owners have more protection from the IRS (see resources). Delaware has similar protection for corporate owners.
While LA and New York are still movie hubs for big film production outfits, Chicago and Atlanta are quickly becoming hot spots for movie making, especially for independent filmmakers.
Hire a director and cast your script. Since you're starting a film production company, you'll want to begin pulling together the necessary elements to make a film. The more you have to offer, the more likely you will be to find investors. Starting a film production company involves playing two sides of a fence. On one side, you're working on getting financing, and on the other, you want to use the funds you have available to build something investors will be interested in backing.
Purchase whatever filmmaking equipment you can afford. You want to give the impression that you're company is a strong production company even before you are. Cameras and lighting equipment, sound equipment and editing equipment are things you need to add as soon as you can afford to.