Q: Hi, Im going to form an LLC but have some questions about starting up without a lot of capital and taxation questions.
So I am the owner of a music group and naturally we don't have a large amount of capital to start a huge company but I was wondering how it works with taxes once you form an LLC and pay for things for your company with personal money before a lot of profit starts coming in is it tax deductible? I was also wondering if i need a business license to go with my LLC to sell music digitally around the world?
A: Speaking with a tax planner is your best bet. He/She can help you decide what entity type is best for you and how to structure your entity to work in your best taxable interests. Business licenses vary from state to state and even county to county or town to town. You should speak with an entertainment law lawyer.
Bruce Alexander Minnick agrees with this answer
A:
Tax stays the same between sole prop and LLC but as a group you're probably a partnership whether you intend to be or not and if you file for a multi member LLC you're definitely a partnership.
The LLC gives you the option to make tax planning elections and gives you liability protection.
NV is a bit pricey for LLCs, around $385 for the annual list and $75 for a county license, don't quote on that it's been a few months since I set one up there.
You need a business license where you operate and you need to know which jurisdictions tax downloaded or streamed music.
You need to find a tax/business attorney that knows a bit of music and an accountant that's not an idiot.
Good luck.
Bruce Alexander Minnick agrees with this answer
A:
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