? for those in regularly working bands

[Rowka]

How do you handle the money and taxes?

Is the band incorporated?
Is the band a sole proprietership held by one member?
Is the band a LLP?

To whom do the club owners provide 1099's?

Or do you deal in only cash-under-the-table?

 

[brianrost]

How do you handle the money and taxes?

Is the band incorporated?
Is the band a sole proprietership held by one member?
Is the band a LLP?

No, maybe and no. Some bandleaders have DBAs, many I work with don't.

To whom do the club owners provide 1099's?

Typically the bandleader, who then 1099s each player. Few venues want to deal with 1099s for each musician.

Or do you deal in only cash-under-the-table?

As often as possible, but I still declare my share to the IRS.

 

[Rowka]

Say the band is just 5 guys doing a cover gig. No "band leader" per say.
Should someone be declared the leader for these financial reasons?

 

[iamthebassman]

We have a DBA, booking agent handles the money, tax forms, etc. Contact your local musician's union for info, you don't have to join.

 

[Peter Squire]

From Australia here, so don't really know the DBa's etc. What I have done is to set up a business name with myself as Director - like a booking agent. My company receives the order for a band, and I invoice.

The members of the band receive payment from the company and I deliver a group certificate at the end of the financial year. Believe me, it takes a consultant to do the paperwork, but its cheaper than a fine.

Not sure how it works where you are, but I am a firm believer that you make a better trade by doing it by the book. Not many clubs do under the table here, and you can claim some of your expenses too.

 

[Rowka]

I'm all for doing it by the book but I don't want the "band" to be a seperate entity with "band" money and "band" property.

I'm thinking it best if one member handles the w-9's with his SSN, then 1099's the other members at the end of the year.

Does this sound reasonable?

 

[Munjibunga]

How do you handle the money and taxes?

Is the band incorporated?
Is the band a sole proprietership held by one member?
Is the band a LLP?

To whom do the club owners provide 1099's?

Or do you deal in only cash-under-the-table?

Don't ask, don't tell.

 

[Eggman]

Our band is an LLC and has its own tax id number. We play gigs for various places that issue 1099s. Better write checks to the band as an entity than to one member. Easier to deal with taxes. Band bank account pays for equipment and recording time. One source for income and expenses makes it easy for our accountant to figure our net income and issue K1 statements for each band member. The net income on the K1 then goes on our personal returns.

 

[jbplayer]

We have a contract with the Wyndham Hotel and they book us 30 plus weekends a year in advance. Our drummer has the checks made out to her. We are a four piece band and split all money that gets reported to the IRS five ways and give her the fifth cut for taxes. It works out to 25% of everything we make goes to taxes. Also since one person does all the reporting anytime anyone of us buys music gear we give the receipts to that person so they can get some deductions.