Ask Maxi · Entities
Should a working musician form an LLC?
It's one of the most common questions we get. The short answer: an LLC is mostly about legal protection, not taxes.
What an LLC does:
- Separates your business from your personal assets if something goes wrong at a gig or a contract dispute.
- Looks professional on contracts and invoices.
What it doesn't do on its own:
- Lower your taxes. A one-person LLC is taxed exactly like a sole proprietor unless you elect to be taxed as an S corporation.
What it costs in Florida:
- A filing fee to start, plus an annual report every year ($138.75, due by May 1). Miss it and the state adds a steep late fee.
When it's worth it:
- You sign contracts with venues, schools or organizations.
- You hire other musicians.
- You own expensive gear or rent spaces.
When the S-corp question comes up:
- Once your music profit is steady and meaningful, the S-corp election can reduce self-employment tax, but it adds payroll and costs. That's a numbers conversation, not a default.
Not sure? Book your 2026 return with us and we'll look at your numbers together.
Want us to handle this for you? Tax planning →