From the course: Taxes and Accounting for Music

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Sole proprietors and partnerships

Sole proprietors and partnerships

From the course: Taxes and Accounting for Music

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Sole proprietors and partnerships

- How you categorize your music business, that is whether you are a partnership, corporation, sole proprietorship or LLC, affects how you prepare your taxes as well as how much taxes you pay. In this video, I'll summarize the rules for the two most common music business forms, sole proprietorships and partnerships. Sole proprietors. If you're making music on your own, that is you're not apart of a musical group and you haven't formed an LLC or corporation, you're a sole proprietorship, a music business that is owned and run by just one person, for example, a solo artist or session musician. As a sole proprietor, you file a Form 1040 and attach a Schedule C to report your music income and deductions. If your music business loses money, you can deduct that loss from income from other jobs, reducing your total taxes. As a sole proprietor, you have some other tax obligations. You must pay self-employment taxes and you may have to pay quarterly estimated income taxes. As a sole proprietor,…

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