Hobby bidness

[lordairgtar]

As some here know, I DJ car shows and other similar type events (just did Wisconsin Hot Rod Radio 5th anniversary show), and generally make about 3 grand a year (including art) doing it. This year, my shows doubled!! Been thinking about applying for an EIN number. This would allow me to have a separate account for the business. Not sure how this works as regarding tax liability and all that. I just got new speakers that are lighter in weight and will be adding more plus upgrading to a hard drive setup so I won't have to lug CDs everywhere I go. Any thoughts? My art income is included under the same name...Airgtar Entertainment.

[Nickerz]

As some here know, I DJ car shows and other similar type events (just did Wisconsin Hot Rod Radio 5th anniversary show), and generally make about 3 grand a year (including art) doing it. This year, my shows doubled!! Been thinking about applying for an EIN number. This would allow me to have a separate account for the business. Not sure how this works as regarding tax liability and all that. I just got new speakers that are lighter in weight and will be adding more plus upgrading to a hard drive setup so I won't have to lug CDs everywhere I go. Any thoughts? My art income is included under the same name...Airgtar Entertainment.

Keep records for the year and determine at the end of the year if you even have to file.

I don't remember the thresh hold, but I think you might be surpassing it at $6000 in revenue. I think the limit is something like $2000 in profit a year.

Your travel to the locations is an expense, your new speakers depending on cost will either be a fixed asset to be depreciated or an expense. Is Airgtar Entertainment an actual business name, or just what you call yourself? If you already have a business just put it under there. There is no reason to declare separate businesses given your size. You can still have a DBA (doing business as) and file everything under what I assume is an LLC. And if you already have another legitimate business (art sales) you probably can't run a hobby business on the side, since the IRS would consider all of your activities to be self employment income.

[LIL EVO]

Need to register with the state your business or dba name. $20 every two years I think. If you sell anything you need to apply for sales and use tax then you can get a sellers permit.

You can use your ssn. Makes everything simple. Turbotax figures it all out for you.

LLC is really only needed if theres a chance someone could get injured, or sue you for some reason at your place of business. Dont think you need that.

Youll need to pay estimated taxes also. Probably wouldnt worry about that until next yr.

Any other q pm me

[Moparjim]

I dj, just about exactly the same. Since I dont sell any actual products where o would have to collect sales tax etc I just file a schedule c under my personal ssn taxes like jason says. I ise hr block software, pretty simple. Just about anything you buy like speakers you can just take the accelerated deduction all in,the,year of purchase and,be done with,it.

[lordairgtar]

Thanks for answers, everyone. Everything I do, art, DJing, is all under what I call Airgtar Entertainment. None is really a legit biz as far as keeping records for taxes is concerned. It was something I was looking into because I doubled my work load this year and I don't wish to run afoul of the government. I guess I will keep actual books on income, expenses and purchases. I intend to go to computer based DJing instead of carting around four cases of CDs. That would free up the trucklet for more amps and speakers. I will however keep the CDs in storage to prove I actually own all my music library.