You were born to entertain. You were not born for paperwork. Unfortunately for everyone, tax time means that everyone needs to stop what they are doing and properly prepare their federal and state taxes. As a performer, you may find that nearly all of your expenses encompass business expenses in one way or another. Whether you are an actor, musician, dancer, or designer you should think about starting a business in order to make tax time and wages easier to decipher. Here are some steps to getting started forming a business as a performer.
Go for an easy company to begin
For single individuals, a corporation or a limited liability company, or LLC, will be easiest to begin. These will cost little money to upstart and you can begin using your business name as soon as you have your tax identification number and the proper paperwork filed with your state. Both a corporation and an LLC will separate your business assets from your personal assets. A corporation or LLC will also allow you to sell shares in your company to investors, to gather more money for your shows and ventures.
Have pay issued to your company
Have businesses that you work for in your artistic craft issue a check to your company. This means that the money goes to your business account. From the business account, set up a regular wage and issue yourself paychecks. This set-up is good for two reasons. If you are an artist, with income coming from different people at different times, you will need a stable "paycheck" to show your landlords and auto lenders. A wage from your business account will give you stable income. This set up will also help during business tax preparation time, because you will know what belongs to your business and exactly what wages belong to you. You will also have set up deductions for social security, federal, and state taxes from your wages rather than have a payment due every April.
Get a business preparer
Along with your agent and manager, you will need to have another person on your team to help you flourish as an artist. A business tax accountant will be able to help you figure out your deductions, plus what you owe personally and from your business. With the help of a mathematical performer, you will be able to successfully navigate the business side of performing. Provide your accountant with all receipts related to your business and performing in order to receive an accurate financial picture each year. Your performing may be doing better than you had ever hoped financially once you straighten out all of the financial kinks.
To learn more, contact a company like Wiggins, Smit, Burby, Reineke, & Company P.A.