Lefty Phillips
Well-known Member
That's what I do. Registered in Washington state, which has ridiculously low tax rates.
Getting Paid
- Thread starter rhumbagirl
- Start date
doggyd69b
Platinum Member
Agree, but my wife might get a job with the IRS, only because they pay quite well. I believe it starts at $125K and goes all the way up to $175K (her skillset puts her on the higher end of that). Not like she would harass me for tax related stuff, but my job also requires a high sense of integrity due to the information we handle so I would be required to report all income regardless of where it came from or if it can be traced or not....
That said, I sometimes envy people in medieval times that could avoid paying taxes by living out of the castle/lands confines.. we don't have that option.
If you really dont want to pay taxes the feds will put you up in a fully secure facility. Not the same thing, but still a possible option.
rhumbagirl
Senior Member
My sister says if you make less than $10,000 total income in a year, you don't have to report anything. Does that mean if you cross that threshold, it would make sense to cross it by a margin of [income + taxes]?
Either way, it would make sense to keep track of gig profits over the year,
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someguy01
Platinum Member
You still have to report your income, but that is below the poverty level of income so you will pay no taxes.
Regardless of amount of income, all are required to file with the IRS.
someguy01
Platinum Member
Nevada and Delaware are also excellent choices.
brentcn
Platinum Member
If you’re doing high dollar gigs for private clients, regularly, and you have assets that need protecting, sure. But you’re not saving and money this way. The LLC gives protects your personal assets, but it’s no different, tax-wise, than a Schedule C / 1099 situation.
rhumbagirl
Senior Member
Obviously if I report my income from band gigs, then I should get with the other band members to inform them [of the increased audit risk to them].
IIRC, one bandmate works a day job and thus has additional income putting him over the $10,000 threshold. If the band income puts him over the threshold, obviously he's not gonna want the IRS to see that.
EDIT: That $10,000 limit is after deduction of expenses, like travel to the gig, new drum heads and sticks, new gear to perform your job, ISP services for a band page, printing costs for flyers and banners, etc.
IIRC, one bandmate works a day job and thus has additional income putting him over the $10,000 threshold. If the band income puts him over the threshold, obviously he's not gonna want the IRS to see that.
EDIT: That $10,000 limit is after deduction of expenses, like travel to the gig, new drum heads and sticks, new gear to perform your job, ISP services for a band page, printing costs for flyers and banners, etc.
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doggyd69b
Platinum Member
I already work in a fully secured facilty I don't want to move in though...
I feel the same way. Others not so much.
doggyd69b
Platinum Member
I think you can only claim exceptions when that is your only income, however if you have other sources of income then not, unless all your sources combined are still below certain amount. Also we as Americans get taxed on every dollar either through IRS or when we buy goods, gas, etc. so there really isn't a way to NOT get taxed on some way.
RickP
Gold Member
You best me to it . I can honestly tell you I would not want to be in the same band as the OP. I have been playing gigs for over 45 years and I would not tolerate this kind of suspicion and scrutiny if I was the other band members .
someguy01
Platinum Member
The llc as a pass through is a lower tax rate than the personal tax rate with a 1099.
This is how a large portion of wealthy America keeps their wealth and pays little taxes.
I just want to get onto the field even if I'm not playing at the same level.
As an individual my rate is roughly 40%, the LLC I pass my wages through is 20%. That's a lot of money at the end of the year.
brentcn
Platinum Member
For you, in your tax bracket, sure. But not for me, and not most musicians.
someguy01
Platinum Member
I don't make much at all, I am just gaming the system like those that do have actual wealth.
brentcn
Platinum Member
Then it’s very likely you had not been doing your schedule C properly. Our tax rate works out to 15-18%. My wife (the professional tax accountant) is certain it would be the same were I to run my income through an LLC.
rhumbagirl
Senior Member
Does it matter who in the band owns the LLC? Can all the band members share in the ownership if need be?
someguy01
Platinum Member
Depends on your state.
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SVBJECT
Active Member
Okay reading this, I'm so glad not to need to tip, and the politics around that!
But lots of coke and dodgy with money? drop the singer, or leave. Not worth it. Don't get me wrong, I'm relatively cool with coke but I've always had a personal rule, if you take drugs, you are inherently saying you believe they should be legal, therefore you have to act like an example of how they can be fine. Ie, I've never phoned in sick, I've never stolen, I've never etc etc don't be a statistic of why drugs are bad, otherwise all you're doing is reinforcing that drugs are bad. If you can't rise above, you don't take.
That in mind, you only take drugs with people you trust (for your safety if nothing else) and on the time of people who you are happy to share with (so they're fine with you taking their time in that way)
If someones doing it on your time without you being fine with it, they're putting their drug needs ahead of the social setting/environment/company they're in. Anyone who puts their drug needs ahead of their surroundings will never improve until they hit the bottom, if ever, and you do NOT want to be around to watch that.
Doesn't matter if the bands got a bank account, or a piggy bank, or a sock, there is a "pot" of sorts that the money goes in and is split according to whatever agreements are in place, e.g. expenses first, then equal shares, or equal shares but someone counts as an extra person for promoting as well as playing, or whatever that may be.
If you cant trust someone to have a shared pot with you, don't do business together.
For myself, gig moneys only been a few hundred here and there, we have a joint band account which we put a few quid a month into and that covers the occasional recording etc, broken gear we agree between us if we can make a withdrawal towards it, and any money we get from gigs just gets swallowed into that. It's more a hobby than pro, certainly so far, so our overall expenses do run in excess of any earnings. We once got some extra on a gig and had a big after party, but again the whole band was in on it, it was agreed before we knew the money was coming.
Tax-wise I can't say anything for the US, but in the UK, if I start declaring it, I'd want to deduct VAT from so many things I've bought (cables, sticks, petrol) but its just not worth it and no ones chasing me for it. When I think the amount I'd save is greater than the amount of effort to save it via declarations, then I'll rethink that.
Again, either the band agrees with you, and you all drop the singer, or the band agrees with the singer, and you want out.
But lots of coke and dodgy with money? drop the singer, or leave. Not worth it. Don't get me wrong, I'm relatively cool with coke but I've always had a personal rule, if you take drugs, you are inherently saying you believe they should be legal, therefore you have to act like an example of how they can be fine. Ie, I've never phoned in sick, I've never stolen, I've never etc etc don't be a statistic of why drugs are bad, otherwise all you're doing is reinforcing that drugs are bad. If you can't rise above, you don't take.
That in mind, you only take drugs with people you trust (for your safety if nothing else) and on the time of people who you are happy to share with (so they're fine with you taking their time in that way)
If someones doing it on your time without you being fine with it, they're putting their drug needs ahead of the social setting/environment/company they're in. Anyone who puts their drug needs ahead of their surroundings will never improve until they hit the bottom, if ever, and you do NOT want to be around to watch that.
Doesn't matter if the bands got a bank account, or a piggy bank, or a sock, there is a "pot" of sorts that the money goes in and is split according to whatever agreements are in place, e.g. expenses first, then equal shares, or equal shares but someone counts as an extra person for promoting as well as playing, or whatever that may be.
If you cant trust someone to have a shared pot with you, don't do business together.
For myself, gig moneys only been a few hundred here and there, we have a joint band account which we put a few quid a month into and that covers the occasional recording etc, broken gear we agree between us if we can make a withdrawal towards it, and any money we get from gigs just gets swallowed into that. It's more a hobby than pro, certainly so far, so our overall expenses do run in excess of any earnings. We once got some extra on a gig and had a big after party, but again the whole band was in on it, it was agreed before we knew the money was coming.
Tax-wise I can't say anything for the US, but in the UK, if I start declaring it, I'd want to deduct VAT from so many things I've bought (cables, sticks, petrol) but its just not worth it and no ones chasing me for it. When I think the amount I'd save is greater than the amount of effort to save it via declarations, then I'll rethink that.
Again, either the band agrees with you, and you all drop the singer, or the band agrees with the singer, and you want out.
someguy01
Platinum Member
This is a solely American thing. Only we feel it necessary to pay service staff a $2.13/hr wage and then depend on the customer to make up the difference. Every other country I've dined in pays their staff a proper wage and are in awe of the whole tipping thing in America.