What type of corporation is best for a music company?
Question by spellboundbeats: What type of corporation is best for a music company?
I am curious as to what type of Corporation i should use when incorporating my Music Production Company. The company is owned and operated by myself. I’ve filled out the paperwork for a D.B.A and have taken the first few steps. Now i need to think of the type of corp needed. Any suggestions?
Best answer:
Answer by Jo Blo
if you have no partners, a LLC is treated by IRS as a sole proprietorship. You can file forms with the IRS to have a single partner LLC recognized as a corporation. A C corporation pays income tax and you would pay income tax on your wages and profits, but the C corp can retain earnings at the end of the year and grow in value. a S corporation is good for a single shareholder, it can not retain earnings at the end of the year so all profits pass through to the shareholders. All 3 of these corps file a tax return.
You can go to the secretary of state web site for the state you live in for good info on forming a corporation, and this is where you’d get the forms to file also. I’d go with S corp.
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