Millions of people worldwide are investing in their music and trying to make it their sole source of income. Did you know that this means you are running a business? Musicians advertise, invest, profit, and operate just as brick-and-mortar businesses do! This is very important to recognize if you want to profit as much as you can from your music!
The Government does not care if your business is selling a product or performing a show!
A business is a business If your ultimate goal is to profit off of your music and you are investing in it you are a business! This means that you can protect yourself with a business entity. Every state varies on costs and styles of the entity, but every musician can benefit from creating their own entity!
Limited Liability Company (LLC) Asset Protection
An LLC is a type of business entity that provides business owners with protection and separates their personal assets from the business assets when set up correctly. With the help of an attorney, you will be able to properly set up an LLC (or another type of more appropriate business entity depending on your requirements) to ensure that if something were to happen to your music business nothing will happen to your personal car or house! It is very important that you consult a licensed attorney and ensure you have taken all the steps required in your state to gain full protection!
When one has properly formed a business entity, they will then be allowed to take advantage of many business tax breaks that a normal individual may not have access to. This means being able to write off different expenses that may include travel, equipment, and food. A tax professional will be able to ensure that you receive all of the tax benefits you and your business are eligible for after you have formally formed your business entity!