The quick answer is absolutely!
First the disclaimers. I am not a certified accountant, legal adviser, business advisor etc, and you should seek professional advice with regards to the topic.
Why should you be a business entity if you are an Artist?
- The main reason to become a business entity is that all the expenses of your art are now business expenses, and can be considered tax deductible.
- Food and beverage
- Any other expenses you incur while you are creating your act.
- Claiming the income helps your personal credit. Being able to show additional income streams that you report on your taxes is always a plus no matter your income bracket.
- There are additional legal protections that you can enjoy if the need arises.
- Small business assistance- If you were reporting as a business prior to Covid-19 you would have been able to get PPP and so forth from the government. There are many programs available for small business outside of Covid-19, however this is the most recent and practically free money.