Join Richard Stim for an in-depth discussion in this video EINs, part of Taxes and Accounting for Music.
- A federal employer identification number, EIN,…also known as an FEIN,…is the business equivalent…of an individual's Social Security number.…You'll need an EIN…if you're filing taxes as a partnership or corporation.…You're filing taxes as an individual musician,…so, a proprietor, and you employ people.…For example, you employ a backing band.…You are a sole proprietor…who has to issue 1099-MISC forms…and you don't want to use your Social Security number…on the 1099s,…or you're an LLC choosing to be taxed as a partnership…or a financial institution requires an EIN…in order for you to open an account.…
You can get an EIN in one day…if you use the IRS's EIN Assistant…at its website, irs.gov.…You can also download and complete a form SS-4…and mail it or fax it to the IRS.…If you use an EIN for your federal tax return,…you should also use it when you file your state tax return.…
In this music business course, author Rich Stim covers the most important tax issues for musicians. He starts with the basics: determining if music is a hobby or a business for you and how that affects your deductions. He then discusses money and the sources that determine gross income. From there, he shows the items you can deduct from your gross income—mileage, studio spaces, touring expenses, and other miscellaneous deductions—that can add up to big savings. Next, he covers the different tax rules for individual musicians, bands, general partnerships, LLCs, and corporations, and explains how to get an Employer Identification Number (EIN) when you need one. Finally, Rich navigates through the tax forms, including Form 1040, Schedule A, Schedule C, Schedule SE, Schedule K-1 (Form 1065), Form 4562, Form 8829, and Form 2016, and provides advice on hiring a tax preparer or going the DIY route with tax software.
DISCLAIMER: This course is taught by an attorney (or other instructor) and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Managing bookkeeping
- Counting income
- Claiming expenses and other deductions
- Understanding tax entities such as LLCs
- Getting an employer ID number
- Preparing and paying taxes