TAXI.com

Hi guys, I'm a new member and have a question about collaborations. A friend of mine are going to be working together on writing for some of the listings. He's not a taxi member, as he won't be co-writing with me on every song, maybe 25 to 30 percent. He's an extremely talented guitar player that understands music theory much better than I and can pretty much play any genre, so working with him opens up a lot of opportunities for me. Should we be fortunate enough to get a placement, how does the payout situation work?

Would they (the client) issue a check to both of us for the licensing, or just me as the Taxi member?

If only me, I assume I would need to do something to ensure I don't get hit with all the taxes, correct?

I'm just looking for some guidance on this. If my friend was only "performing" and not writing, I would work out a fee with him, but since we'll be doing some writing together, I realize it's a different story.

Thanks,

Jay

In doing a co-write always figure on equal splits between you and your co-writer(s). In this case 50/50. When your track is signed with a library, publisher, music supervisor, etc, each of you will sign a contract and also part of what you'll fill out for them is a little schedule that says (among other things) who the writers are and what percentage they get for each song that you're submitting. Then when there's a placement, any upfront licensing fee will be split and sent to each of you. The royalties will be paid out separately as well, each of you having your own account with ASCAP, BMI, whoever.

Let's say that you get a placement with a $500 licensing fee. Typically $250 would go to the publisher and the other $250 would be split between you and your co-writer. The publisher would take care of that, each of you getting a separate check for $125. Whatever writers royalties are earned, that would be split then between you and your co-writer, each receiving 50% of the writer's royalty from your PRO (BMI, ASCAP, etc). The publisher receives a publishing royalty which doesn't affect your writers royalty, completely separate.

Awesome, thanks for all the info Dave, I really appreciate it!

Jay

davewalton wrote:In doing a co-write always figure on equal splits between you and your co-writer(s). In this case 50/50. When your track is signed with a library, publisher, music supervisor, etc, each of you will sign a contract and also part of what you'll fill out for them is a little schedule that says (among other things) who the writers are and what percentage they get for each song that you're submitting. Then when there's a placement, any upfront licensing fee will be split and sent to each of you. The royalties will be paid out separately as well, each of you having your own account with ASCAP, BMI, whoever.

Let's say that you get a placement with a $500 licensing fee. Typically $250 would go to the publisher and the other $250 would be split between you and your co-writer. The publisher would take care of that, each of you getting a separate check for $125. Whatever writers royalties are earned, that would be split then between you and your co-writer, each receiving 50% of the writer's royalty from your PRO (BMI, ASCAP, etc). The publisher receives a publishing royalty which doesn't affect your writers royalty, completely separate.

However, some libraries will only pay the Writer's share of upfront licensing fees to only one writer (the 'primary' person who made the submission) who then would have to pay the shares out to co-writers. It varies.

As Dave said, equal shares between co-writers (e.g. 50/50) is always the best way to go.

Casey

Thanks. Yes, 50/50 is what we agreed on anyways, so that's a non-issue for us.

Thanks again.

no need to worry about the taxes either.

and by that I mean.....

you will likely only get a 1099 if you are paid over $600 in one calendar year. Even if you get a 1099, since you are a "contractor" and not an employee, the withholding for taxes will likely be $0.00.

So whatever happens, if you get the entire sync / master use fee (assuming there is one) then you would send half on to your co-writer. If the client cuts you each a check, then you are done right there.

And at tax time, you and your co-writer will each have to correctly report your income and pay the appropriate tax - withholding or not.

Thanks for the info!