How do start your on production company ?
- Thread starter Theleak
- Start date
It's very simple, to legally start a business is just a matter of researching the laws in your area on starting a an LLC, Corp or whatever business entity you want to start
Picking a name and registering that business. I'm not familiar with the rules and regulations where you are but it can cost anywhere from $50-800 to get this done. Where I'm located it cost $100 to start an LLC and $20 dollars to renew everywhere year
Picking a name and registering that business. I'm not familiar with the rules and regulations where you are but it can cost anywhere from $50-800 to get this done. Where I'm located it cost $100 to start an LLC and $20 dollars to renew everywhere year
Slum Shaman
New member
You really don't need to register as a business until you get in bed with labels, A&Rs, and musician's unions...You know, the people in suits.
Sales tax still does not apply to online sales, I think, so you are not obligated to pay any taxes as a "business", which would really be the only thing you would have to look out for.
You can go under the table for a long while, but if you want to secure some sort of name, I would look into filing a DBA ("doing business as"). This is the cheapest way to operate under a legally-secured name, and I don't think it requires any sort of monthly/yearly payment.
Otherwise, just network with others, and always look for ways to step up your hustle.
Sales tax still does not apply to online sales, I think, so you are not obligated to pay any taxes as a "business", which would really be the only thing you would have to look out for.
You can go under the table for a long while, but if you want to secure some sort of name, I would look into filing a DBA ("doing business as"). This is the cheapest way to operate under a legally-secured name, and I don't think it requires any sort of monthly/yearly payment.
Otherwise, just network with others, and always look for ways to step up your hustle.
bandcoach
Zukatoku - Mod Scientist
You need to look at the various types business entity and look at the benefits of each vs the cons in your state/country: initial costs, ongoing costs, taxation requirements, whether you are an employee (paid a wage/salary) or a principal (take your earnings from the profits). To what degree you have equity in the business: Equity = Assests -Liabilities (the book value of what you own versus the book value of what you owe) may also determine what type of business entity you create.....
Key issues here are that as a business, as long as the assets are purchased for the business, you get tax breaks and depreciation/amortisation on your hardware and software and any fittings and furnishings needed to house and use the hardware appropriately. Even rent and property taxes are open to being a deductible to some extent.
Software upgrades are a deductible/depreciable item.
Hardware upgrades/replacements are also depreciable items.
Servicing of equipment is also a deductible item.
Your tax accountant should keep good schedules of your depreciating items and let you know when you can buy new ones - when they amortised.
So whilst there may be benefits of staying under the radar, there are better benefits to staying above the radar and actually paying taxes (minimal if you buy right).
caveat: I am not an accountant or lawyer: I offer the above in good faith, believing it to be true within the current regime of taxation laws
Key issues here are that as a business, as long as the assets are purchased for the business, you get tax breaks and depreciation/amortisation on your hardware and software and any fittings and furnishings needed to house and use the hardware appropriately. Even rent and property taxes are open to being a deductible to some extent.
Software upgrades are a deductible/depreciable item.
Hardware upgrades/replacements are also depreciable items.
Servicing of equipment is also a deductible item.
Your tax accountant should keep good schedules of your depreciating items and let you know when you can buy new ones - when they amortised.
So whilst there may be benefits of staying under the radar, there are better benefits to staying above the radar and actually paying taxes (minimal if you buy right).
caveat: I am not an accountant or lawyer: I offer the above in good faith, believing it to be true within the current regime of taxation laws
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bandcoach
Zukatoku - Mod Scientist
These are questions for an Arts/Entertainment lawyer - they can give you the most relevant facts and information in your state and what course of action my be best for you. best of all, depndeing on the final business entity you decide on creating, their fees may well be a deduction......