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PSA for those that get 1099ed for music

funkycam

Member
Messages
2,285
As a "semi-professional" musician, I have had a few incidents where an artist asked me for my social security# & I felt bad giving it because I didn't know how well it would be protected.

I did a little Googling & found you can apply for an employee identification # which you give in place of yr ss.
you can do it online & it takes about 4 minutes.
more info & a link to the INS page here:
http://activerain.com/blogsview/971...cial-security-number-safe-from-identity-theft

I just did it & i def feel better about sending tax forms to people I don't know now!

Hope this helps somebody
Cam
 

bynt

Member
Messages
2,120
Wow, cool. Thanks funkycam. I'll definately be looking into that. I don't like giving my SSN. I'm sure that people can abuse EIN's as well but I'd still feel better about it. Preeshi8 the post!
 

funkycam

Member
Messages
2,285
when I first read matt's post I was less excited about EINs, but still feel better about giving it out that my SS.
 

pir8matt

Member
Messages
5,693
when I first read matt's post I was less excited about EINs, but still feel better about giving it out that my SS.
I wasn't trying to be a buzzkill, for real. I used an EIN for years running a small business and still have it. Once they issue it, its yours forever, just like a SSN.

Which is/was kind of my point, its linked to you and your identity, so is just as exploitable. But it is less common so might be better.

I imagine it might make it easier to keep the income separated on the books as well.
 

Dickie Fredericks

Gold Supporting Member
Messages
10,747
The bottom line is that if you make any money doing music you should incorporate. Heck, everyone should incorporate themselves.

Its easy, doesnt cost much and saves a ton of money and headache.

YMMV
 

aeolian

Member
Messages
6,323
Is it better to incorporate as an LLC? I've heard that is more complex but may save you if some drunk trips over your PA.
 

subendo

Member
Messages
243
Why incorporate? I'm interested as I play in a cover band and get taxed on the income. What would being an "INC" or "LLC" do for me? I'm sure I could find info on irs.gov, but I'd rather hear from a fellow working musician who has done this already. Thanks.
 

Dickie Fredericks

Gold Supporting Member
Messages
10,747
Is it better to incorporate as an LLC? I've heard that is more complex but may save you if some drunk trips over your PA.
Mine is set up as an LLC. Why incorporate? Liability issues among other reasons.

Actually, Dickie Fredericks Music is a subsidiary of a larger LLC.
 

uga1

Member
Messages
180
Why incorporate? I'm interested as I play in a cover band and get taxed on the income. What would being an "INC" or "LLC" do for me? I'm sure I could find info on irs.gov, but I'd rather hear from a fellow working musician who has done this already. Thanks.
It can also help you on your taxes to avoid some of that awful self employment tax. There are limits and you should get a CPA to help you, but as a s - corp, you can show some of your pay as dividend which is taxed at a lower rate.
 




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