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Should i file for an LLC or just file as sole proprietorship?

by Bands, Performer

  • Created: February 20, 2010, 11:18 pm
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4 comments

i play in a band for a living and was wondering if i should file for an LLC or just file as a sole proprietorship.  I own the band myself and there are no partners.  i use different musicians in the band when i play in different cities so all my players are contract labor and get 1099's.  i was curious if an LLC is better for liability and how much it costs.

Tags: Discuss Popular Topics, Starting & Registering a Business
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teamextension | Contributor | 2/21/2010 - 12:26 am

What kind of liability do you want to protect yourself from for playing a band? I don't know much about the music industry.
Professional Web Site: http://www.teamextension.com

ChristineL | Former Moderator | 2/21/2010 - 7:20 pm

Hi Bands, Check out our Business Incorporation Guide to learn about the advantages and disadvantages for forming LLCs, sole proprietorships, and more.

phanio | Contributor | 2/21/2010 - 1:03 pm

I would suggest that a LLC would be your best bet if you are fearful of having your personal assets at risk. An LLC may be better for you as it would not have all the onerous requirements of a corporation (like payroll and annual meeting). Most LLCs are hybrid organizations that provide the same liability protection of C Corps but without all the hassel of C Corps and they usually have pass throguh income just like a sole proprietorship. Most LLCs are very easy to set up by filing a form with your state's office and paying the fee.
Professional Web Site: http://www.businessmoneytoday.com/

krummelhart | Creator | 2/21/2010 - 6:28 am

LLC can be painfully complicated (Lawyers love them!$!$!)... Also many states have a higher tax/setup maintain fee structure for LLC than traditional Corp. structure so check that out...   I would recommend a traditional Corporation (This limits your liability) and apply for an FEIN and get a S Corp. election so the Corp. pays no Federal Tax... all income just flow thru to you...    
Professional Web Site: http://www.onlinecorporatedocs.com