I need some help. The group I play with is getting more and more gigs requiring contracts. Usually one of us hands over his/her social security number, and then that person must declare the entire payoff on their taxes. Once or twice a year is one thing, but we’ve had 4 this year and more coming up. The city and the university are beginning to see us as the “go-to” band for “folky” stuff, and they always require written contracts. I think it’s time to talk to the band about changing the way we do business. We haven’t imposed any particular financial organizing principles on ourselves to date.
I feel completely out of my depth in this arena (I still pay my federal taxes by phone!) so if any of you are familiar with these issues, please respond.
What is the procedure for getting “Doing Business As…” papers?
What extra costs and/or tax forms are required by declaring the band as a wage-earning entity?
Can these responsibilities be shared, or will one person have to volunteer to deal with this?
I’m not even sure if these are the right questions, so please give any advice you can think of.
On 2002-09-19 15:55, thurlowe wrote:
2) What extra costs and/or tax forms are required by declaring the band as a wage-earning entity?
Your band is not a “wage-earning entitiy”. It is an entity that is paid for services performed. Whoever hires you should not be withholding Federal Income tax or Social Security. It’s the difference between being an idependent contractor and an employee.
The best advice is to consult an accountant. You don’t want to get into a complicated bookkeeping system, but you do want to stay out of trouble!
Congratulations on your success!
Have a look at your state’s web page regarding doing business: http://www.michigan.gov/
State pages are usually a very good resource.
It also may be worth your while to pool your pennies and have a consultation with an accountant, as suggested, and a good business laywer to help you decided how to proceed. Check the bar association web page for your state for referrals. http://www.michbar.org/
Before you pop the bucks for an accountant, you might want to check out a book called “Music Law: How to Run Your Band’s Business” (Music Law, 2nd Ed) by Richard Stim. You can find it on amazon, where it appears to be very favorably reviewed. If you search amazon on “music business law” you’ll get a number of hits that might be helpful, but this one stood out as goind right to the heart of your concerns.
I seem to remember seeing this (or something like it) on the shelf in the music section at Border’s as well, so you might be able to pop in there and give a look to see whether you can find something that addresses your needs cheaper than a session with an accountant or tax person.
Note: gonzo is in no way affiliated with amazon, Border’s, Music Law, Richard Stim, the American Bar Association, Enron, or the Republican party. gonzo is independently poor and does not have to resort to crass commercialism to maintain his low standard of living.
