Production businesses often have unique skill requirements for the projects they are working on. Casting services assist production companies in finding the talent they need. Most agencies specialise on a particular field, such as theatre actors, commercial actors, film and television show actors, or extras.
Casting firms have a number of opportunities as video-based media continue to rise. According to IBISWorld, the overall income of agencies in the United States is $875 million per year and is rising at a rate of 4.3 percent.
Plan your Casting Agency Enterprise
Create a legal entity for your casting agency.
Register your Casting Agency for Taxes.
Create a Business Bank Account and a Credit Card
Create Accounting for Your Casting Agency
Obtain the Required Permits and Licenses for Your Casting Agency Business
Purchase Casting Agency Business Insurance.
Create a Casting Agency Business Brand.
Make a website for your Casting Agency.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to beginning a casting agency has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
A casting agency’s initial expenses may range between $10,000 and $50,000, although they can also be kept lower. The first costs are allocated to:
Obtaining office and audition space
Buying a phone and a computer (along with internet access)
Attending events and attending meetings
Business owners with minimal cash may significantly cut these costs by working from home or renting space at a shared coworking location. When renting space, proprietors should ensure that a separate conference room is accessible for auditions.
Most company owners already have a phone and a computer, which reduces the entire launch cost of an agency.
The continuing costs of running a casting agency are negligible. They include the expense of utilities, office and audition space, internet connection, and transportation to and from events. Businesses with workers must also pay wages.
While casting agencies must advertise to performers in order to establish their talent roster, their ultimate target market is production firms. Casting agencies are paid by corporations.
Casting agencies make a fee on the contracts they acquire for talent. This is normally indicated as a percentage of the contract, however an agency may charge a flat fee on top of the contract.
According to Kerry O’Donnell, some casting firms charge talent registration or “digital processing” fees.
Casting agencies usually get 10% of the contracts they negotiate. In other states, their fees are limited to 10%.
Talent may be charged anything from $25 to $500 for joining up with agencies that impose a registration fee. Most effective organisations realise the need for a little fee but will not raise it to hundreds of dollars. Those who do charge $500 are often not as well-known in the field.
Casting agencies may make a considerable profit even with a 10% fee.
Extras are often paid $10 per hour on the bottom end of the wage range. However, providing a production company with 300 extras (for example, for a busy city scene) would result in costs of $3,000 per hour. An agency would make $3,000 in commission over the duration of a 10-hour session.
Actors for feature films may make tens or hundreds of thousands of dollars on the top end. The typical annual wage for actors is $49,825 according to Payscale. Based on this, each actor represented by an agency would earn the agency an average of about $5,000. An agency with just 50 performers may earn $250,000 per year.
Casting agency operators might supplement their income by giving auditioning courses to aspiring performers. Classes may be provided as part of a training package or by a separate firm.
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a formal company organisation, such as an LLC or corporation, shields you from personal liability if your casting agency is sued.
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
Our LLC Expenses Cheat Sheet simplifies LLC accounting.
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
Certain state permissions and licences may be required to run a casting agency. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
A casting agency is often managed from an office. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can get a valid CO for a casting agency company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building rules and zoning standards for your business’s location to guarantee that your casting agency is in compliance and may receive a CO.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
The value of networking cannot be emphasised. Casting agencies learn about talent requirements via their connections, which is why company owners must continually cultivate new and preserve existing partnerships.
Furthermore, even when an arrangement goes bad, company owners must be cautious not to destroy any bridges. Because the entertainment business is tiny and people gossip, finding methods to conclude contracts gracefully is always better than entirely breaking connections.
Casting agencies must have performers to represent in order to attract production companies. Talent may be found by:
Attending performances and approaching performers
Magazine and online advertising
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.