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Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 2562
Experience:  Nearly 30 years of varied tax industry exp. Tax Biz owner
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Hello, I have been in the dj entertainment business for approx

Customer Question

Hello,
I have been in the dj entertainment business for approx 17 years. I have had a couple of successful companies, etc.. I am now basically operating as an independent contractor/1099. Should I incorporate myself, LLC, etc? Is there any reason that I should create a company name, etc, rather than filing under personal? I also have another job, as a W-2 income.
Please advise

Thanks- Lou
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.
Welcome. THANK YOU for choosing Just Answer. My name is XXXXX XXXXX my goal is to help make YOUR life, a little...LESS taxing.

Q: Is there any reason that I should create a company name, etc, rather than filing under personal?

A: Yes, because as a sole prop, you will be personally liable for any lawsuits that are filed against your business.
----------------------------------------------

Q Should I incorporate myself, LLC, etc?

A: Some individuals who start off as sole proprietors usually end up creating an LLC or becoming an S-Corp. In your case, establishing an LLC will likely be better. Listed below is information about the individual business structures;

Sole Proprietorships

Owner remains personally liable for lawsuits filed against the business.
No state filing required to form a sole proprietorship.
Easy to form and operate.
Owner reports business profit and loss on their personal tax return.

----------------------------------------

Limited Liability Companies (LLCs)

Independent legal structures separate from their owners.
Help separate your personal assets from your business debts.
Taxed similarly to a sole proprietorship (if one owner) or a partnership (if multiple owners).
No limit to the number of owners.
Not required to hold annual meetings or record minutes.
Governed by operating agreements.

---------------------------------------

S Corporations

Independent legal and tax structures separate from their owners.
Help separate your personal assets from your business debts.
Owners report their share of profit and loss in the company on their personal tax returns.
Limits on number of shareholders, who must be U.S. citizens or residents.
Must hold annual meetings and record meeting minutes.

----------------------------------

Regarding having a regular job is not an issue. You will report your W2 income on Line 7 of the Form 1040 and as a single member LLC, report your business income on the Schedule C.

Please let me know if I can be of further assistance to you regarding this matter.

Thank you again for using JUST ANSWER.
Customer: replied 1 year ago.

Thank you for your response. So, the best way for me to go would be an LLC, and I should get some sort of business credit card or something to put all of my dj related expenses on, correct?

Expert:  Tax.appeal.168 replied 1 year ago.
Hello again Lou,

For now, an LLC will be the best business structure for you. As for getting a credit card in the business name, yes, it is a good idea to do this and keep the business expenses separate from your personal expenses. This makes for easier record keeping for business expenses.
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 2562
Experience: Nearly 30 years of varied tax industry exp. Tax Biz owner
Tax.appeal.168 and 10 other Tax Specialists are ready to help you
Expert:  Tax.appeal.168 replied 1 year ago.
Lou,

Thank you for the high rating and the generous bonus. I appreciate it. Feel free to check back with me in the future should you have other tax or finance related questions. Even if prompted to do so, there is no need to respond to this post. Have a productive and prosperous day.

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