How to setup a KJ Biz

[trelynda]

Hi there,

I currently host karaoke for various bars that have their own equipment and I am paid as a contractor and getting a 1099 at the end of the year. If I want to branch out on my own and offer my services to various bars, how is the best way to set this up tax wise?

[bryant]

Originally Posted by trelynda

Hi there,

I currently host karaoke for various bars that have their own equipment and I am paid as a contractor and getting a 1099 at the end of the year. If I want to branch out on my own and offer my services to various bars, how is the best way to set this up tax wise?

Hire a tax accountant and they can do that for you quite well. Those that do not give out "1099's" are still subjected to tax but is income that you report yourself.

People that don't report this tend to call it "working under the table".

[muzicman144]

Originally Posted by bryant

Hire a tax accountant and they can do that for you quite well. Those that do not give out "1099's" are still subjected to tax but is income that you report yourself.

People that don't report this tend to call it "working under the table".

Bryan, i don't mean to undermine your advice, but, everyone i have ever known who started in this business has to put out a product that someone is willing to pay for. At this point, some require a 1099, some don't. It is foolish to go out an hire a tax accountant when you havn't even produced income.
My advice is to go out, sell your product, sign any forms needed, do your work, and at the end of the year, if you don't understand what you have done, then find the expert in the field you have questions about. If you are successful as a KJ, find the tax expert to help you, and if you aren't successful as a KJ, find an expert to sell your equipment. Never Never Never ask for a 1099.
Hope this advice helps
muzicman144
muzicman144

[bryant]

Originally Posted by muzicman144

Bryan, i don't mean to undermine your advice, but, everyone i have ever known who started in this business has to put out a product that someone is willing to pay for. At this point, some require a 1099, some don't. It is foolish to go out an hire a tax accountant when you havn't even produced income.
My advice is to go out, sell your product, sign any forms needed, do your work, and at the end of the year, if you don't understand what you have done, then find the expert in the field you have questions about. If you are successful as a KJ, find the tax expert to help you, and if you aren't successful as a KJ, find an expert to sell your equipment. Never Never Never ask for a 1099.
Hope this advice helps
muzicman144
muzicman144

Hey, no prob, I think what you said was really what I meant. Glad you cleared it up for me.

Also, it is law that if someone expects to hire you for more than a total of 600 dollars that year, they must ask for your SS# and then send you a 1099 if it surpasses 600 dollars income to you. Some don't because it is easier for them to take it out of their cash drawer, but in doing that, they are actually paying taxes on that amount as they can only deduct 600 dollars as miscellaneous. Then it still is the responsibility of the karaoke host to claim what is income was.