Originally Posted by Webby

Ah.. also... It is fairly common in that field to have a corp based in a low or zero taxation area and have... eg.. LucasFilm S.A. blah (tho avoid that one! )

The reasons are sound in that projects like movies are examples where five years can be spent on planning/scripting etc - then in one year the final product is released and earns money, and the earnings within that tax year are going to be estimated and grabbed at a higher rate. In a way this is unfair, since you spent five years not earning, then the profits are "confiscated".

Sooo.. again, better to give some thought to establishing your production company in a zero taxation area. Panama is a typical example for this type of business.