Discussion in 'The Sound Hound Lounge' started by rdamato, Nov 4, 2018.
GUYS I AM AN ACCOUNTANT AND I CAN TELL YOU THERE IS A TON OF MISINFORMATION IN THIS THREAD.
Well there you go, guys, there is a lot of misinformation in this thread and rather than listening to some guy on the internet, talk to your accountant. Not someone elses, yours.
I formed an LLC (limited liability company) years ago when our band reformed. An LLC is treated like a corporation for liability purposes and like a partnership for tax purposes (this is a good thing). I did so to try to limit liabilities on an individual basis, to have one band checking account in the name of the LLC, and to put the band name and the PA title into the LLC. The 1099 issue came years later but 1099's have been the case for several years now. In my view, the LLC makes this easier to handle. The cost to set up an LLC is a problem for many (I was able to do my own for free - I am an attorney). Each year the accountant does the tax return for about $100 and issues a K-1 to each band member. It costs $25 per year to maintain the LLC with the state. My band is never going to be big time or make a lot of money so we did not have to sit down and deal with the buy out issues that are usually lurking in entity formations (this is where professional time can run up and cost a lot).
This thread is why I have an accountant. He's not cheap, but every year I get a pretty sizable check back.
I also do a lot of church gigs on the side of band gigs and this year two of the churches had to make me a part-time employee. That's a new one.
It's a revenue collection tool.
The IRS has publications that you should read before you even talk to an accountant.
When you talk to the IRS on the phone or in person they are clear that they cannot give you advice. Any information they give you should be confirmed by you, independently.
Not every accountant is equal, like guitar players.
Not all information posted here is correct. In fact, I would suggest that it is better to come away from this thread with this in mind:
With this much contrary information, I should question it all, and find out what is up.
For example, while establishing a bank account in the name of the band might provide some ease and simplicity in accounting, I found I could cash checks made out to the band's name, at my bank, where they know me.
It makes it simpler for me when I am the leader and prime contractor and everyone else is my minion, err, I meant to say sub-contractor. Everyone gets a 1099.
Do you file as a sole proprietor? You do yours and I'll do mine. CAN YOU HEAR ME NOW?
Quit with the all caps already. FIFY
Yes i do file as a sole proprietor. The op asked questions and people are telling him to write off travel expenses. Unless you want to take your instrument to work with you, leave it out in the elements, and risk it getting stolen, then drive straight to band practice or the gig you can't do that. And my personal favorite, spend 10 of thousands of dollars on a dumble then write it off as a business expense. That 1 made me chuckle.
This ridiculous post just made me chuckle. You must be a total pessimist to think that the only way to take an instrument with you is to leave it out in the elements, waiting for someone to steal it. LoL
I get it; you like being negative, but don't try to wear the hat of authority and then make posts like this last one especially.
If you show a loss for more than three years out of any five the IRS can declare that it is a hobby and not a business. Once they do that you can never again file a Schedule C for that "thing" as a business. It is forever a hobby.
There's an accountant in Burbank that crunches numbers like Henry Kaiser plays guitar.
All corporate events and restaurants and bars, as well as casinos and other non dive bars have been doing this since I started gigging in the mid 80s. It’s common business practice.
If a solo performer or your band play venue that the earnings annually are more than 600, you are likely to get a 1099 from the venue if they are legit. Been this way for a long time. Same as if they pay you cash or check. Very possible to get 99'd. Most venues that pay bands well enough will 99 the band.
Sorry man, I think you mixed up quotes! I never said anything about what you can or can't write off or asked how you file.