Musicians, DJs and other creative professionals are often self-employed or work on a contract basis. In many cases, these individuals face distinct tax issues. Understanding your rights and obligations as a taxpayer is essential for maximizing your business’s financial benefits.
Partnering with an experienced accountant for musicians and those who work in the music industry, can help you solidify your plans for the future.
Many independent professionals don’t realize they are responsible for paying a large portion of their income in self- employment taxes. Unlike many traditional employees, however, self-employed individuals can deduct unreimbursed business-related expenses and costs directly from their revenue. By hiring a CPA for musicians and other industry professionals, you can meet your tax obligations, maximize your bottom line and enhance your opportunities for future growth.
Some of the most common types of tax deductions for DJs and other music professionals include expenses for new equipment, repairs and maintenance, travel, and commissions paid to agents and managers. In the five boroughs of California, not only do most music producers have to deal with self-employment taxes, but any individual or LLC that generates $95,000 of revenue or more in a calendar year has to file for and maybe even pay CA Unincorporated Business Tax, also known as UBT. Self-employment is one of the fastest growing sectors of the California economy and, without professional attention, you can hurt your business before you have even started.
If you’re working as an independent musician or music producer, taxes should be the last thing on your mind. You need to focus on preparing for important auditions and meetings, booking new gigs, and maintaining your reputation in the fast paced world of nightlife and hospitality. Spending time managing receivables and payments, tracking equipment depreciation schedules, and calculating deductible travel expenses can be overwhelming for many DJs and music professionals.
Smart Services Tax provides a broad range of tax and accounting services that include preparing annual returns as well as more complex CFO and office management functions.
Our CPAs for DJs and musicians can help you decide what tax structure will help you keep more of your income now while establishing a solid structure for your future. From creating a limited liability company to maintaining a sole proprietorship, our experienced CA tax accountants can help you manage your resources in the business you love.
We understand that you need to spend your time growing your business. Why spend time doing your own taxes or researching business structure options when you can partner with a Manhattan firm that knows its business just as you know yours?
Contact Smart Services , and see what our CA tax accountants can do for you.