Today's podcast answers a question from Paul, a member of a tribute band whose theater-style shows involve numerous singers and musicians, as well as a great deal of interstate travel. Paul asks how he can find out how income is taxed in various states? Also, if he incorporates his band, will the band have to collect taxes from the performers as employees, or can they be hired as independent contractors? Finally, is there an ultimate guidebook to bands navigating the music industry?
If you have a question you'd like Tony to answer on the M.E.L.O.N. podcast, please send it to [email protected]
Resources mentioned in the podcast:
Assembling an Entertainment Industry Team on MELON
Legal Issues for Bands on MELON
All You Need to Know About the Music Business by Don Passman
Although I'm no financial expert there are a couple of ways in which an artist or band can successfully manage their business affairs while on the road, away from home.
Most successful artists and bands find it necessary to employ accountants or, business managers in order to handle their affairs. More often than not, personal aspects of a band or artists finance cross over and become areas of expertise to such managers. If you're in a position as such I highly recommend that this person or company be someone other than your bands manager. Although it may seem convenient to have your manager tend to these issues, it's not a wise choice and can stir up some serious conflicts.
If you're not able to afford a professional, or don't have that heavy of a load which might warrant a professional, you may consider asking a close and trusted member of your family to tend to these matters for you. However, if you're paying your taxes, chances are you've already employed an accountant at one time or another. Stay away from the obvious tax accountants or corporations which offer tax solutions and ensure that you hire an accountant who understands your business and the respective laws related to it. In other words, don't go to HFC and expect they'll tend to your business.
There are also several means of prearranged payments you may want to consider with your bank. Similarly, credit card companies like American Express offer extensive methods to pay bills. They also offer personal accounting methods which are available online which make it very convenient to pay recurring and/or general bills while at the same time, keeping track of it all.
As for the ideal day job to have while not touring . . . I've found in my experience that intermittent employment is a very difficult area to master. I was very fortunate to have had some very understanding employers that were very flexible and open to my schedule. If you're of value as an employee (trustworthy and dependable) I'm sure you'll be able to make an arrangement with your boss if he/she is in a position to keep you on as a full time, part-timer.
Depending on where you live may have its perks as well. Los Angeles or New York for example, cater more to artists and actors who seek secondary, part time employment. If you're a musician, you may want to try getting your name around and hook up with some studios or producers who require musicians for recording gigs.
Best of luck to you. I hope this helps you a little.
Jack Harry
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