artist business licence nc sole proprietorship

#Artist business licence nc sole proprietorship for free
#Artist business licence nc sole proprietorship tv

Setting up a DBA is typically a $75-80 one-time cost, and you can have multiples of these depending on your use case.įor those concerned about using their Social Security number in official documents, consider getting an EIN tax-ID number, which you can use in place of your Social Security number (SSN) and you can obtain it for free through the IRS. For example, setting up a business called “Graphic Design Stars & Associates” vs. Creating a DBA may help you to command more money for your goods or services. The DBA is a way that you can legally sign up for a brand name or a company name without having to create a legal entity. If you would like to have a business name, such as a theater company name, a music ensemble name, or a design business name, consider getting a unique DBA (Doing Business As). As an artist, you’re allowed to write off ordinary and necessary business expenses without having an LLC.For anything other than a sole proprietorship, you have to do a separate tax return before your personal return, which adds complexity to your taxes.There’s also an annual cost just for having an entity, this is before any additional tax returns or taxes to pay, for maintaining the LLC or S-Corp: typically $100-$500 ($800 if you’re in California).There’s an initial set-up cost: $200-$1,200 for an LLC or an S-Corp.It takes time to administer, which may be burdensome for you.Here are a few reasons why you may not want to set up an LLC: “It takes time out of your life to learn and deal with the LLC, and is not always valuable enough to justify it,” he adds. Once you set up an LLC, you’re “creating a tax baby,” says Garofalo. When asked whether or not an LLC is necessary, Garofalo and Stoddard say that their default short answer to most people is “No, a lot of people shouldn’t.” Though you may feel you need to do something to “become” a business, you do not. For example, if you’re a graphic designer and someone pays you $5,000 for freelance design work, you’re a business and you have to report that income. You are automatically a business as soon as you get paid money without taxes being taken out.

#Artist business licence nc sole proprietorship tv

“Kween Kash” Sarvis (NYC Women’s Fund Fiction Webisode/Webseries ’23)’s “Homegirl TV Show,” Photo Credit: Marlon Lewis Reasons Not to Set Up an LLC That LLC will report its money and your money on your personal taxes on the Schedule C in the same place that a sole proprietor does. If you set up an LLC, and you’re the only member of an LLC, the government will assume you’re an LLC taxed as a sole proprietor. It is the same thing as being a contractor, emphasized Stoddard. “You don’t need to do anything to be a sole proprietor, or to be considered a business,” he says. Sole ProprietorĪ sole proprietor, says Garofalo, is just what you are by default. You’ll fill out different tax forms depending on which category you select or fall into.

C-Corporation (Most companies are this: Coca-Cola, Ford, Apple, etc.).S-Corporation (aka Loan Out Corporation, typically one person who wants to be taxed as a separate entity).Partnership (Default as a multi-member LLC).Sole Proprietor (Default of a single member of an LLC).If you elect to start an LLC, you can be taxed as any of the following: Garofalo summarizes an LLC succinctly as a legal entity choice, and not a tax choice. In this post, Rus Garofalo and Eric Stoddard from Brass Taxes will review questions to consider when you earn income from your creative work, and explain the common types of business entities artists use. Image Detail: Joiri Minaya (Fellow in Photography ‘22), #dominicanwomengooglesearch 2016, UV print on Sintra and fabric collage Rus Garofalo and Eric Stoddard of Brass Taxes break down the common types of business entities artists use.Ī help or a headache? Worth it or not worth it? Artists often hear that they should form an LLC or other business entity, but they are rarely given a clear idea as to why or why not.