Douglas Noss wrote:
> I would suggest that the band/musician get a EIN #. Essentially a SS# for
> your company(band). We get paid by check almost every show. 10-12 a month.
> Thats how we do it and it makes keeping the books straight easier.
Thanks for the tip; I'll certainly look into this.
As for getting paid by checks, though, the majority of clubs
in this area (up to 600+ capacity) operate strictly with
cash. Occasionally one will require a SS# even for payment
in cash. Those range from a small country bar whose owner
seems to have been spooked (by IRS or state tax dept.) to
a considerably larger metropolitan venue, which seems to
be keeping their books as absolutely straight as possible.
Likewise, most of the musicians around here - from the
worst to top notch players - tend to operate as
"self-employed" independant contractors unless they're in
a band that has sufficient overhead to warrant some kind of
collective tax strategy, etc.. Those situations are
increasingly rare, due to the lousy state of the live music
biz hereabouts.
The instance I mentioned earlier of my bandmate once
being tormented by the IRS was rotten, since he's
completely honest in his record-keeping and was being
straight with them. I found it pretty weird - they're
completely dependant on the honesty of your record
keeping, yet his tangible proof that the gig money in
question was divided (the cancelled checks) was not
accepted. I pity anyone who tries to audit him (or any of
the rest of us) again. That sucker will suffocate from
receipts.
Tom Smith
