Friday, August 14, 2009

Do I need to form an LLC or similar to sell my music? -

I m interested in selling my music off iTunes, Amazon, CDBaby, so forth, but I have no business experience whatsoever.Do I need to form an LLC or Ltd. for any reason and would there be tax incentives involved in doing so?Or should one keep it simple and just report any earnings on their taxes?

That really depends on a few different things. How much money do you think this will bring in? What do you think is your personal liablity with this business? An LLC can separate your personal and business assets and reduce your liability. It is a great asset protection tool. If you income is high enough, it can also give you significant tax benefits as well. You should seek proper counsel. If done incorrectly, it can cost you in the long run. I consult with clients daily on proper business structure. Let me know if you need assistance.

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