(US Based) Registering as a writer through an s-corp

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  • #34410
    MrD NY
    Participant

    Hey guys,
    Searched around in the forums for this but couldn’t find anything (apart from a post on how to transfer writing royalties from an individual to a corporation).
    Does any of you have an entity, such as s-corp or LLC, that you use to register your writing royalties?
    I’ve been doing music and sound design/mixing work for a few years and I use an s-corp to get paid because it is financially VERY advantageous. Last year I started making royalties money from BMI which goes on a 1099 under my SSN, so it’s personal income.
    Since royalties are subject to self-employment taxes I’d rather have them come to my s-corp so I can split the income up between salary and distributions, on top of being able to do more writeoffs in comparison to a self-employed individual. When the income goes above $50K/year the difference between getting paid in your name and through an s-corp are very apparent.

    It seems to me like it would be best and I was wondering if any of you is doing this and if you can share your experience? I’m not looking for legal/accounting advice, just personal experiences.

    Some questions/thoughts:
    – Are libraries going to have issues signing a contract between them and a company VS an individual?
    – Can you even do this with BMI? (register a writer account under an entity rather than an actual person)
    – Are there obvious disadvantages?
    – Anything you’d like to share?

    Thank you!

    #34411
    Mark_Petrie
    Participant

    – Are libraries going to have issues signing a contract between them and a company VS an individual?
    No, most big ones are used to it because most US composers that have been writing library music for a while usually have an LLC or S corp.

    – Can you even do this with BMI? (register a writer account under an entity rather than an actual person)
    Yes. Just call them for the form specifically designed for you to assign your writer’s royalties to your company name.

    – Are there obvious disadvantages?
    no, aside from the payroll, minutes keeping etc costs of running an S corp, and the PITA of having to pay yourself from the corporate account anytime you need money, but you’re already familiar with all that.

    #34412
    MrD NY
    Participant

    Thank you for the quick answer Mark… I’m going to get on the phone with BMI this Monday!

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