My husband and I are professional classical musicians---we perform and teach for a living. Most of what we do is self-employed. We currently do much of our work from home. We are considering renting a separate office space to teach in and meet clients. The rent would be $400 per month. Will we be able to write the entire $400 off as a business expense since it is only used for our music business? Do we need to be come an LLC?
State/Country relating to question: Minnesota
Good afternoon. Yes, you could write the entire $400 off...and you don't need to form an LLC for this...you can simply report your income and expenses on Schedule C and then it will roll over into your 1040.
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29 yrs. as tax, real estate, and business attorney
Thank you!What tax benefits are there to forming an LLC?
There really aren't any tax benefits to having an LLC...the operations just flow through to the owners...so there aren't any negative aspects....but the only reason you would form a LLC is to limit your liability ... which would protect your other assets from liabities of your business...but teaching music lessons is not likely to result in any potential liability...so I doubt the expense of forming an LLC would be worth it to you.