We all want to pretend that it is still the days of busking for cash and keeping big brother out of the loop, but more and more venues are issuing checks, and the IRS is cracking down on freelancers. It will only get worse, so adapt and make the process easy. Here are 5 tips:
Setup an LLC. I know, becoming a ‘business owner’ sound lame, but you already are. You are marketing, promoting, booking, billing, driving, purchasing, and offering services and merchandise. Why not segment all the business work you do into an actual business?
Credit Card. This doesn’t have to be in the band’s name. The ‘owner’ of the LLC can simply use a personal card as a business card, and as long as the card is 100% band purchases, it is easy to keep segregated from personal finances. We have been using Capital One QuickSilver for 5 years. They offer rewards, their app works great, and we received a limit increase after 6 months of on time payments. Also, the fraud protection is superior to what banks offer, so we make all purchases on this card.
Mileage
Bookkeeping
Expenses
Guitar strings are double to price they were 4 years ago. Did you know that is a business expense? Did you know that mic stand replacement or new strap ia a business expense? There are legal tax loopholes for your band. Miles to a gig, strings, gear, oil changes, gas, food, and more can be written off. It does take a certain level of rhythm to get into the practice of documenting things like this, but the end result can save you big time, in April with the IRS.