To LLC or not to LLC?

NY

I'm starting a gigging musical ensemble with about 6 other people. I didn't think I would ever have to incorporate or become an LLC but people have been telling me that if I'm going to start bringing in that much money I have to become an LLC. Just a few other details about myself: I would like to be a sole owner. I'm 20 and my parents still claim me on their taxes.

I'm leaning towards the LLC thing. Is that the right thing to do? I also don't fully understand what that would entail in terms of cost.

Thanks

How much money you're bringing in is NOT a consideration in having an LLC or not. What makes you think you need a corporation or LLC?


You should be paying taxes on your band income regardless of whether your parents claim you. How much is "that much money?" Unless you are a full time student, at 20, making close to $4000 disqualifies you form being a dependent on your parents return.

For either an LLC or a corporation, you'll need to draft the articles of incorporation (you can by these or have someone prepare them for you, it will run $$$), the state filing fees total about $200 in NY. You also have to advertise formation in the newspaper, that will run additional money.