PLEASE NOTE: The numbers in this example are simple and are for demonstration purpose only. We are not taking into account progressive tax brackets, write-offs, etc. The purpose of keeping the math simple is to show the potential financial benefits of having a personal publishing company.
If you’re a songwriter, you are most likely registered with a Performing Rights Organization such as ASCAP or BMI.
But are you also registered as a publisher? You should be...
Here are just 3 reasons why setting up your own Publishing Company - both through your PRO as well as a recognized business entity (LLC, Corporation, etc) - is extremely beneficial to every serious musician.
- Tax Benefits
- Liability Protection
- Potential to Leverage Future Earnings
The publishing entity you register with your PRO does not need to be a recognized business entity. It could be as simple as a DBA or Sole Proprietorship, however, it's important to understand that neither of those offer any liability protection.
As with anything finance and business related, you should always speak with your accountant or financial consultant to run the numbers and see what type of business entity they would recommend that will work best for you.
Since everyone's situation is different, you should also consult with your Representative at your PRO. PROs exist to serve & guide you, and it's important to develop an ongoing relationship with your Rep as they will have first hand experience with this as well.
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