Danny Barnes
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Hi Danny, a fellow picker friend asked the following: Hi All, and thanks for your time. My question is- how should I best organize our 3-person band for tax purposes? We receive royalty checks and have legitimate expenses, such as CD duplication, licenses, etc., in additopn to equipment and travel. So far, it's been done under my SSN, with a Schedule C, because it's small potatoes... I send the guys checks, but I deal with the taxes. We are getting to the point where we need to change. I can certainly break out/summarize the income and expenses for my bandmates. How best to do this? partnership, LLC, etc?? I appreciate any advice you can offer. Thanks.

Let me know, please, thanks ~ :)
~best.
Mary


Danny Barnes responded on 04/14/2015
A

well i don't really offer accounting advice or any of that. just a couple things to keep in mind. if i'm thinking right, the set up you have is likely the most dis-advantageous to you. that's they way folks usually do it until there's an income stream by with which you can make the band a separate entity, which i believe would be your best move. time to quiz a couple cpa's in your state. hopefully one or two that have experience with art. it takes some research. it's going to take a little cash to get set up legit. but it's the best way to go, cuz otherwise you'll have it hanging over your head.

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