Sunday, April 21, 2013
Music Business/Law Tips - "Business Formation"
Once an artist gets serious about a career and starts to make money, its wise to have a professional business structure. There are several options, and the factors involved in which entity to choose are normally based on liability protection, taxes, complexity of the artist's situation, and set-up cost. The 4 most common types of business forms are: (a) sole proprietership, (b) partnership, (c) LLC, and (d) corporation. The differenses are beyond the scope of a short article, but a good attorney or accountant can help the artist make the correct choice. In genera however, at first a sole proprietship works OK for a solo artist and a partnership for a band (and can be converted to an LLC or Inc. later once the career progresses). Ben McLane Esq benmclane.com