Money
Is your act a business? Sole prop, LLC, or S-corp.
At some point every working performer wonders whether they should "make it official" — form an LLC, become an S-corp, something. Here's the plain-English version of what those choices actually mean.
Sole proprietor: where almost everyone starts
If you're performing for money and haven't set anything up, you're already a sole proprietor. There's nothing to file to begin; your business income flows onto your personal tax return. It's simple and free. The tradeoff: there's no legal separation between you and the business, so business liabilities are personal ones.
LLC: a liability wrapper
Forming an LLC creates a legal entity separate from you, which can help shield your personal assets if the business is ever sued — meaningful for an act performing around the public. By default an LLC is taxed the same as a sole proprietor (no automatic tax savings), but it adds a layer of protection and a more professional footing. Many performers form one once they're booking steadily.
S-corp: a tax election, later
An S-corporation isn't a different kind of company so much as a tax election an LLC (or corporation) can make. Once your profit is high enough, it can reduce self-employment tax by splitting your income into a reasonable salary plus distributions. It also brings payroll, more paperwork, and accountant fees — so it only pays off above a certain income, and the exact threshold depends on your numbers.
The honest guidance
Roughly: start as a sole proprietor, consider an LLC when you're booking regularly and want the liability separation, and look at an S-corp election only once your profit is high enough that the tax savings clearly beat the extra cost. This is one area where an hour with an accountant pays for itself — the right structure depends on your income, your state, and your risk. Don't over-engineer it early; don't ignore it once the money is real.
US general information for working performers — not financial, tax, or legal advice. The rules change and everyone’s situation is different; talk to a professional about yours.
Practical gig-business notes, occasionally.
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