Becoming self employed how does it work

[thedon98]

As you all know as a producer u get paid cash in hand or by cheque, but how do i go about this in order to get taxed because if u avoid the tax man he will find you lol

help please.

 

[thedreampolice]

Have a copy of every receipt, write and invoice from your client and save at least %30 of what you make on beats for the tax man then file it as part of your income. Also you should get and accountant to do your taxs and not use places like H&R block. Get your tax advice from him and not some internet forum ha ha.The nice thing about doing things this way however is that gear is tax deductible, you could almost make a case for your business getting charged rent/electricity and you being the landlord. Anyway talk to an accountant about it he will know the best way to do things, also when it comes to finance advice you do get what you pay for!

 

[thedon98]

Have a copy of every receipt, write and invoice from your client and save at least %30 of what you make on beats for the tax man then file it as part of your income. Also you should get and accountant to do your taxs and not use places like H&R block. Get your tax advice from him and not some internet forum ha ha.The nice thing about doing things this way however is that gear is tax deductible, you could almost make a case for your business getting charged rent/electricity and you being the landlord. Anyway talk to an accountant about it he will know the best way to do things, also when it comes to finance advice you do get what you pay for!

thanks for that will do

 

[KurtisRich]

Would you have to register yourself as a "Business" or something like that through the state or city first in order to claim the income? Cuz I've been DJ'n for about 6 years and I get paid in cash or by check but I never claim it as extra income on my taxes. Sometimes i wish i woulda done that so i could write off all my equipments and records I bought during that span.

 

[Relic]

^^^ Prolly diff everywhere but here, you reg the business name with the state then get your bus license from the city, I can tell all of you WAIT to do all this.
Get to a point where your actually making money first , otherwise you will be getting hit in the head to pay the fees for all these people and agencies and no income to pay for it, so it comes out of personal pocket.

 

[shadeed]

As you all know as a producer u get paid cash in hand or by cheque, but how do i go about this in order to get taxed because if u avoid the tax man he will find you lol

help please.

Don98 - being that your location is London and I'm US based, I'm going to assume that some of the business laws are different in your area.

The very basics of it are this: (do more research after reading this)

**Settle on a name that nobody else owns
**Decide on a business structure according to how you want to be taxed and how much protection you want from lawsuits
**Register that name and business structure with appropriate filing entities in your country

**If you want to receive checks and money orders -
Set up a business checking account and your bank

**If you want to process payments online
Utilize a secure payment processing company (PayPal is most popular but there are hundreds more)

Keep good records and receipts (what receipts you keep may be different in London)

 

[2GooD Productions]

Dont quote me on this but its what I recall from reading about it before.
Once you register the company you can earn up to something like £18,000 a year before having to pay tax.
Like I said dont quote me and see a solicitor about it, Im not sure on the exact figure and I dont want to get anyone in trouble with the taxman, because the taxman dont fuck about. But Im sure its around that figure.
Registering a company can cost as little as $30 I think, registering trademarks is more expensive.
You should also talk to a solicitor about copyright, as for the most secure copyright in the UK you should send copies to him for safe keeping unopened with dated post office stamp on envelope.
The general standard in the uk is sending a copy to yourself. But with a solicitor it holds up better to legal scrutiny.
You can also join the PRS, & MCPS, organizations that register your work and make sure you get paid royalties if your music is 'on air'(used in advertising/movies/games/radio play etc). And also the musicians union is another great organisation for the serious artist. If you want to take your music to the professional level then talking with a solicitor is your main goal, second would be to look into the organizations I mentioned.

 

[Relic]

^^^ OMG Im shutting down my US based shit and starting up there!!

ARe U SERIOUS??
I could def deal with makin around $36,000 tax free a year.. HA!

 

[2GooD Productions]

http://www.companieshouse.gov.uk

I think all the information is there.


http://www.smallbusiness.co.uk/chan...des-and-tips/28983/sole-traders-and-vat.thtml

Thats the information I was talking about, but thats for vat, i think you still have to pay income tax.

 

[Producer_GyaL]

good infos!!

 

[thedon98]

thanks everybody for that info

 

[Greg Savage]

I registered as an LLC and i only pay taxes on what i dont put back into my company so yes i try to put all te profits back in

My tax lady is wonderful

ps running your company from home is a good idea (if you live in a good area)

 

[BROUSSARD BEATS]

i have a link you can checkout www.artistshousemusic.org they have some great videos to watch about music and starting your company