The first-ever national arts index revealed that funder commitment to the arts is declining in tough economic times. In light of the inconstancy of donor funds in recession, this might be a prime moment for artists to bank on their talents through business formation.
Industry leaders at ArtistsHouseMusic.com seem to think now is a good time for business incorporation. They offer musicians some tips on how to treat their music careers as business ventures in order to stand a legitimate chance at success in downturn.
The source says it’s important for musicians to choose a business structure, open a corporate bank account and prepare tax returns on behalf of a band in order to ensure that endeavors are seen as more than just a hobby.
Musicians may consider forming a sole proprietorship, partnership, C corporation, limited liability company or an S corporation. The source says many musicians choose sole proprietorships because they require the least amount of paperwork, however, it warns that this entity offers no protection against personal liability as the other business types do.
One official says that thinking like an entrepreneur may not come naturally for some musicians, but “the music industry is a business just like any other.”
For musicians, artists, or any prospective business owners who find that business formation does not come “naturally” to them, it may be wise to seek the guidance of professionals at an incorporation service. These experts can offer insight on the different business types and which may be the most profitable for a unique venture.