Financing gear??

[dylanausten123]

I normally buy straight up! less to worry about.

https://soundcloud.com/dylan-austen

[calgarc]

I work as a full time musician (teach, dj produce) as well as had jobs programming from home. there are a lot of write off. the 2 biggest are travel expenses and cafes.

[Chaser720]

The rules change a bit here in the states, but you can also set up an S-Corp instead of the LLC. LLC used to be better tax-wise, but some circumstances an S-Corp would be better. Very easy and cheap to set up ($500 or so).
Of course you can write off all of the expenses (gear, travel, music,etc) and each has its benefit as far as tax bracket is concerned.
The only key is you have to actually report some income...meaning you can't just set one of those entities up and say you never make money. The IRS will have questions for you . It is a great way to consolidate things. I may set one up for some of the consulting work I do.
Of course, check with an accountant and they will be able to tell you if it's worth it and the over all benefits.
legalzoom.com is a good site for info on how to set these up

Do you actually have to report income? I'm sure a lot of startup businesses never see a dime. From what I am reading you may lose the llc status if you fail to show a profit for 3 of the previous 5 years.

[TonyRome]

You definitely have to record income... Just many start ups may not show a PROFIT for a couple of years
there are limitations as to how long before they start to question. small business can not run for long periods of time the way some large companies do (but that's a different story )
It is a very good idea for a working DJ, though. I'd say go for it if you do enough business. You can write off your expenses on your taxes anyway without the entity set up, it just could be more beneficial as your business gets bigger to be an LLC or Scorp (there are limited liability clauses in both as well)
Have a conversation with an accountant and they will guide you better. I never did it with my DJ business, but will be setting it up for another retail and service based business we are planning on doing.

[johnnypepp]

When paying cash just be sure not to spend your last dime, I always have a shit happens sum stashed away on an account in case my car breaks down just after I bought myself a new shiny piece of gear.

[DJ DR]

You definitely have to record income... Just many start ups may not show a PROFIT for a couple of years
there are limitations as to how long before they start to question. small business can not run for long periods of time the way some large companies do (but that's a different story )
It is a very good idea for a working DJ, though. I'd say go for it if you do enough business. You can write off your expenses on your taxes anyway without the entity set up, it just could be more beneficial as your business gets bigger to be an LLC or Scorp (there are limited liability clauses in both as well)
Have a conversation with an accountant and they will guide you better. I never did it with my DJ business, but will be setting it up for another retail and service based business we are planning on doing.

The benefit of forming an LLC or S-corp is derived from the protection they offer owners from liabilities. So if you operate as an llc and someone is hurt at a gig (let's say your speakers tip over on them) you aren't personally liable. Meaning they can only sue the business and not you personally.


The key to determining whether or not deducting the cost of your gear is legit is if you're attempting to operate at a profit. Is this a business or a hobby? If you're not bringing in any money from gigs (lessons, or whatever) than you could be in trouble. Most of the basic questions can be answered here:

http://www.irs.gov/uac/Business-or-H...for-Deductions