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?

  1. 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.
    1. Travel
    2. Marketing
    3. Food and beverage
    4. Wardrobe
    5. Make-up
    6. Hair
    7. Any other expenses you incur while you are creating your act.
  2. 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.
  3. There are additional legal protections that you can enjoy if the need arises.
  4. 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.

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