Thursday, March 13, 2014
Music Business/Law Tips - "Business Forms"
Artists and entertainment companies have several options to consider when deciding the best type of business to form. The most common business entity forms are as follows: Sole Proprietorship, Partnership, LLC and Corporation. Factors such as liability, complexity and taxes are considerations. 1. Sole Proprietorship: This is normally for a one person company. Its also known as a DBA. This is the least complex, but there is more potential liability. 2. Partnership: This is for 2 or more co-owners. Its also not very complex, but each partner is subject to liability. 3. LLC: This is for 1 or more more owners, and is sort of a hybrid of a partnership, but there is a liability shield for members. 4. Inc: This is for 1 or more owners, and is more complex than an LLC to operate, but there is a liability shield. Most large companies seem to be corporations. The tax ramifications of each is beyond the scope of this article and its suggested one speaks to an accountant before making any decisions. Ben McLane Esq benmclane.com