I am planning on filming an online show about punk rock music with my two best friends here in Los Angeles. We have been doing business as Karma Productions but have not made it official. If I register us as DBA (doing business as) Karma Productions I believe it will be one name on the DBA and that means taxes will be unfairly put upon just one of us and just one of us can enjoy any future success with the show legally and put the others in the dark. We don't have the resources to incorporate yet and we really need to start filming with this record company. Can we just do business under Karma Productions and state that it is three individuals and list each of our names in the deal memo we have with the record company? Any insight into the law or this situation?
2007-09-18 09:47:48 · 7 answers · asked by Anonymous in Business & Finance ➔ Corporations
Sure you can divide the income/expenses/profit/loss between the 3 of you. Just as long as you all agree on the split. If it's 1/3 to each, than that's what each of you gets. The one thing though that you should do is get an EIN number through the IRS for the business. You can go on-line with the IRS and fill out an SS-4 form and you will get an EIN for the business. Then you can each report 1/3 of the business income on a Schedule C on your 1040 tax returns using the EIN number on the Schedule C. That way if you do incorporate you've already got the EIN number.
2007-09-18 09:52:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Technically, you have a Partnership. Partnerships can be formal or very informal.
While Partnerships need to file a tax return (Form 1065), they don't pay taxes. The income flows through to each partner's return and each partner would pay his share of the taxes.
You can apply for a Federal ID online and have any 1099s issued to that Federal ID instead of you (or someone else) directly.
You probably should contact an EA or CPA in your area for advice.
2007-09-18 09:55:41 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋
you should organize as a partnership and just use the KP name - you wouldn't use DBA - that's usually only for one person companies that want a business name - you may still have to go thru formal fictitious name regulations - partnership is a lot cheaper for tax prep and organization than a corporation - still need to write up a partnership agreement - how much each person owns and shares in revenue - 1/3 each or whatever and duties and responsibilities of each person
2007-09-18 09:53:44 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Sounds like the first thing you need is a free consult with an atty. Even if you have to pay for an hour.
2007-09-18 09:52:48 · answer #4 · answered by wizjp 7 · 1⤊ 0⤋
Joint bank account and all three sign the Business license
so yes you can
2007-09-18 09:52:09 · answer #5 · answered by Scratchy_Joe 4 · 0⤊ 1⤋
yes
2007-09-18 09:50:34 · answer #6 · answered by Anonymous · 0⤊ 1⤋
so whats the face for then?
2007-09-18 09:50:42 · answer #7 · answered by Anonymous · 0⤊ 0⤋