DBA? Tax ID#?

[mikehamm123]

I may be close to making a sale, it occurred to me, do I need to get a DBA? A tax ID# so they pay to that, instead of my SS#?

I have a day job so it hasn't been an issue.

Its possible a production company *can't* pay an individual (in CA, anyway) unless they have a tax ID#.

Is this correct?

Thanks!

[hummingbird]

Not sure what a DBA is.

If you're in Canada it's an ITIN that you might look into getting. It's a bit of a process but a good idea for this career.

Most libraries will just ask you to file out a particular form for the IRS. W8BEN, I believe.

For royalty income that's collected by SOCAN and they will send you an income earned statement at the end of each year to include in your tax return.

[mikehamm123]

Thanks. In the USA, a DBA is a 'doing business as' license, where you form--I believe its a sole propriertorship?--so you can receive payments as a business, not an individual.

So your payments aren't tracked/taxed according to your social security# but to a business version of that, which is created when you register with the gov't.

I know in Hollywood there was a big crackdown on how they paid 'independent contractors' in the 90's.

[hummingbird]

Ah, I read 'CA' as 'Canada'

I can't comment on US needs but I believe there was a thread on this topic not too long ago.

[waveheavy]

I'm new at this, but if I recall when I joined ASCAP, I checked an option where they handle my tax liability. I didn't sign up to be a publisher, so ASCAP should handle that for me as they will be the one to issue me checks. You don't have to create a business to license your music. You can, which I would think that would be if you want to become your own publisher/label and sign other individuals up and be their publisher and get their publisher share (which is what the music libraries do). Some here might be doing that and could chime in.

[mikehamm123]

if I recall when I joined ASCAP, I checked an option where they handle my tax liability. I didn't sign up to be a publisher, so ASCAP should handle that for me as they will be the one to issue me checks.

OK, thanks. I'm realizing I don't know a thing about this. I'd better do my homework!

[waveheavy]

ASCAP or BMI is going to be one your best sources for that. Here's a link to some Newbie info about the music library industry:

https://musiclibraryreport.com/blog/newbie-info/

if I recall when I joined ASCAP, I checked an option where they handle my tax liability. I didn't sign up to be a publisher, so ASCAP should handle that for me as they will be the one to issue me checks.

OK, thanks. I'm realizing I don't know a thing about this. I'd better do my homework!

[mikehamm123]

ASCAP or BMI is going to be one your best sources for that. Here's a link to some Newbie info about the music library industry

I can't tell you how much I appreciate this!

[VanderBoegh]

Hey Mike, you can certainly get paid directly by whichever Performing Rights Organization you're with. Whether it be ASCAP or BMI, they'll write you a check and give you the appropriate tax paperwork at the end of the year, as they don't withhold any money from the check (so you'll have to pay your own taxes out of it). All that is tied to your SSN. If you're getting upfront money from libraries, or any types of synch payments, the library will operate in this same fashion.

If you want to get all business-like, you can start an S-Corp and get an EIN number that will collect the money for you, and then you could pay yourself a salary from the company. I wouldn't recommend this though until you're at the point where you're making enough money to justify the expense and time that starting a company entails.

If you're just getting started and don't plan on racking in multiple thousands of dollars per year, I'd just collect the money directly.

~~Matt

[mikehamm123]

[quote="VanderBoegh"]Hey Mike, you can certainly get paid directly by whichever Performing Rights Organization you're with. Whether it be ASCAP or BMI/quote]

Even better!

Thanks, much appreciated. Will go straight SS# for now, and I'm probably under the radar as far as estimated taxes go.