I'm pretty sure as long as you obtain your music from a legit pool you have the right to play it. As far as the liscensing fees I think that is up to the venue to have that. The place I dj at just recently had to pay for that. Just make sure you pay your taxes.

Someone on this forum put me up on this other forum: www.djchat.com
It's full of professional DJs who DJ completely legally and who actually make a full time living DJing. They would probably be able to answer you, or at least have a topic you could look up thru the search.

I think you are supposed to license the music you play at mobile gigs, and I think all remixes are technically illegal without permission. Clubs are supposed to pay their licensing and all that.

I really don't know what the law is but it's probably ridiculous and impossible for it to ever be followed by everyone.

All bars,clubs,and venues that provide music as entertainment pay an annual fee to ASCAP or BMI which covers the licensing of the music being played. Mp3 pools obtain promotional music ,at no cost from record labels with the hopes that dj's like yourself will play them in the club or radio. You will not have to pay any fees.

If the venue hires you as an independent contractor. You will be responsible for you taxes at the end of the year. If they pay you cash aka under the table don't report it.

Thanks a lot for your input guys, and one more question, so at the end of the year whatever tax prep software I use, I just put my DJ earnings in as 'other income' ? and is my equipment tax deductible too?

yeah as they said. the venues should have a license, or if not it's up to you. SOCAN is the canadian agency and i think the american mentioned above.

you can write off your travel expenses, music, staff etc if you have a business license. just go to you local bank, set up a seperate account used for djing only, and then either city hall or your local business regitry office to obtain your business license number. you can write a percentage of your expenses but not 100%. the amount will very depending on where you live. not everything is tax deductable. for example, equipment would be, but lunches are not..unless u find a loophole to prove it was a business meeting that resulted in a contract. the lines are grey, but until you are pulling in over a certain income, you prob wont get flagged for auditing

get some dj insurance too, i have 2 mil liability and its only 350 a year... protect yourself and your gear...

the first thing i would do if your serious about being a dj full time is hiring a good lawyer and an accountant.. after you find those 2 key personal you'll need a business plan so you can receive a tax ID.. I suggest you file under an LLC (Limited Liability Company), when doing so you'll be able to write off any travel expenses, equipment purchase, and Networking purchases including dinners, conferences.. etc etc after you obtain your tax ID you'll also need to open a corp bank account which you'll need for business transactions..

As far as your music goes, you'll need to register to ascap, this step is usually taken by the club owner/bar owner but we all know how cheap those guys are so if i we're you i'd do it myself just in case...

i almost for got you also need to make receipts and contracts for all your events and make sure the club owner issues you a 1099 before tax season for taxes.. with that said you have to put some money aside for each paying gig since uncle sam always needs piece of the pie!!

THE BOTTOM LINE: if your not making over 50k a year on dj don't bother just do everything under the table..

^ Let's say you're not making 50k, isn't it still a good idea to do things legal? Maybe not report every gig if it isn't reported by the other party, but at least use contracts etc. I'm sure there's a certain amount you have to make before you owe them anyway

Technically that's not legal..

but i agree with you on the contracts..

Yep, question could be answered better over there. Although we are not all bad here - we are no angels here,we know where the line is and we like to see how close we can get - LOL

I run my DJ biz by the books and I really don't make squat but your equipment will be a write off for years to come so make sure you always have the recipts for anyhting and you can also write off your Gas to the places you DJ at as well.
For all these DJ's on here saying "Don't report it" ...the IRS might just look into you for spouting off advice on here. Always claim something..every time you work..thats my $.02 ;)

Ugh, this is slightly overwhelming. How does anyone get anything done these days?

LOL @ the IRS comming onto a DJ forum, finding a user name and trying to look into their books

BELIEVE IT! This country is desperate for money and I've seen stranger things happen. Do what you want but you've been warned.

so the IRS is going to take a forum name liek lets say jesus christ, trace it to his......ip address, THEN place a sting on him to see if hes acutualy a working DJ.....prob not

The IRS aint auditing Jesus Christ

That's because he's non-profit.

Almost started a new thread for some tax advice, but hopefully this is the right place...

I haven't filed to create an LLC, and likely won't by the end of the year. However, I have done a lot of nights this year at a Casino, and will end up getting a 1099 and having to file on at LEAST that income this year.

Most years, our tax return funds our vacation. The wife is gonna be livid if Uncle Sam eats up all of it due to DJ taxes!

To people who have done it "legit" without actually starting a company... what steps do I need to take? What can and can't I write off without risking a messy audit?

I bought a 57 and a MBP this year and traded an extra set of decks for a VCI-300. I have the receipt for the 57, but I got the MBP on Craigslist. I do have the emails stating the agreed price, but is that good enough for documentation? On the VCI, I have the Guitar Center receipt, but it's in the name of the guy who bought it. Can I still use it?

People say that you can write off gear for multiple years, how does that work? If I have gear that I have not written off in the past (1200s, PA system, etc), can I write that off as well, or does everything need a dated receipt?

For gas/mileage etc - can I just add up the miles and multiply it by the number of gigs, or do you actually have to have gas receipts, etc etc? I assume that I can also write off all of my music and video subscription services, but are there other things that I am not thinking of that I can write off as well?

I will probably be looking at between 8 and 10 grand worth of income, and want to get as many legitimate write-offs on the books as possible to bring that number down. Not trying to cheat the system or claim that I bought 10 turntables this year lol.

Any advice would be GREATLY appreciated!

All this would best be answered by a Tax professional...I know the amount basically all together that you can write off is based on your total income..not just buisness...Like mine is roughly 25% of what my expenses are writen off and that was based off of my total income on my buisness and reg income. Seriously though..talk to someone that does taxes for a living...not to DJ's who might not know what their doing right or wrong. Just sayin ;) GL to ya!

yeah i agree with above, i do know that your allowed a start up year or two to write off more then your normally can... find out from your tax guy and let us know!

think of it this way.... it's not what u know, it's what u can prove. receipts in other peoples names wont count. random milage is a gey area, u need to prove it somehow.

you prob wont get audited...but u never know and if u do, its what u can directly prove without doubt. and yes. without a business license, its a percentage.

ask a tax professional, or a financial advisor.

Unless you're a FULL TIME DJ or want your DJing income to help you buy a car/house then there's no need to claim your dj income, get an entertainment license, or register with ASCAP.

Big name artists themselves like Kanye, P Diddy, and Lil Jon give away their music for free on FB, Twitter, and their blogs. There's pools like Digiwaxx where you can also get music for free so there's no way for the RIAA to tell if the music you own is legal.

For the thread starter the bar scene usually pays you cash under the table. They just open the bar register at the end of the night and hand you your cash. No contracts, checks, or pay stubs.

I finally filed a 1099 this year. I've been dealing with the IRS as of lately, and it hasn't been fun. :(

peace

I usually just get paid in gum

Eric - i think it is difficult to write off equipment because it is a "capital investment" in your business rather than an "expense." Business expenses are things that are disposable or last less than a year (I used to put all my vinyl purchases, cell phone bill, gas, magazine subscriptions, record pool fees, etc. as expenses). I think you can deduct the depreciation of your gear on a yearly basis. Even if you don't have an LLC, you should file a Schedule C (income/loss from business) so you can deduct expenses. You don't need to file anything to be a Sole Proprietorship (a type of small business).

Bottom line: if you have 8k-10k in reportable DJ income, and have made significant purchases, HIRE AN ACCOUNTANT. you will probably spend like $100 and he/she will maximize your refund, answer all these questions, etc. It will be worth it in the long run.

mental note, only buy numark TTX turntables and mark them as busniess expenses

Thanks for the tips, everyone. I am gonna have to hire a pro. I am sure it will be well worth the $100 or so when it's all done, though.

What Does ASCAP have to do with being a DJ and paying taxes?

WATCH OUT FOR SCHEDULE C's... if you go to the average tax place (H&R block, etc) they charge a LOT more for that and they don't tell you until the end... ask how much a return with a schedule C is before you waste 30 minutes doing your return..

Thanks for the heads up. A buddy who owns a mobile company around here referred me to his tax guy (no strip mall), so I think I will try that route. May cost a bit more but will be worth it in the long run.

Because technically you may need to pay royalties for music performance if you're not in a ASCAP/BMI registered business location (I'd say "Most Bars & Clubs" but I'm sure there's a significant % that ignore it or don't know). That's "Being a legal DJ"..

And technically, sports bars with many TVs even need an ASCAP license..

www.ascap.com

A food service or drinking establishment is eligible for the exemption if it (1) has less than 3750 gross square feet of space (in measuring the space, the amount of space used for customer parking only is always excludable); or (2) has 3750 gross square feet of space or more and (a) uses no more than 6 loudspeakers of which not more than 4 loudspeakers are located in any 1 room or adjoining outdoor space; and (b) if television sets are used, there are no more than 4 televisions, of which not more than 1 is located in any 1 room and none has a diagonal screen size greater than 55 inches.

An other establishment is eligible for the exemption if it (1) has less than 2000 gross square feet of space; or (2) has 2000 or more gross square feet of space and satisfies the same loudspeaker and television set requirements as for food service or drinking establishments.

No. They would go to the bar or club to pay the dues. The DJ is not responsible for it unless he's the promoter of the event.

Douggy - in the US, venues have to pay those fees, not performers, DJs, etc. If the venue doesn't pay, they get in trouble (not you). I think it is much different in some European countries.

I was thinking of straight mobile gigs at non-performing venues (like houses, gymnasiums, etc)... Not clubs. Although reading into it, there are some exemptions. I think you're right though, everything really points to the promoter/management of the events.

If you claim deductions for tax savings you better report income from that business or the IRS will definitely audit you. My Mom was making no money from her music but she claimed deductions for expenses for recording/equipment and got audited. The IRS told her if she is not making income for more than a couple years then she is not running a business(hobbyist instead) and therefore cannot claim deductions. Be careful. Sometime your clients report what they paid you -even if it was cash and the IRS gets 1099 forms. If you claim less income than what your clients reported paying you -you will be audited almost definitely. If I were you I would always report all income(even cash) to the IRS- ALWAYS! Be legit or risk the wrath of the IRS. Just be honest. Why even mess around?

I'm pretty sure you can deduct equipment as a business "expense" -but an accountant will do an amortization/depreciation schedule so that you can make smaller deductions every year on that same equipment for 20-30 years instead of one large deduction in one year. You benefit more that way. Definitely get an accountant if you have equipment expenses. BTW - I don't think equipment is considered "capital investment" unless it already was an asset from a company you purchased? My understanding is that "Capital investments" are usually stocks, 401k, etc.. I think buying equipment for a business is just an "expense" just like your business phone bill. On my 1040 the only capital gains/losses are my husbands stocks. My $20,000.00 harp I use as a harpist is amortised/depreciated on my schedule C- which is only business profit/loss, not capital gains/losses. It looks like a $1500.00 expense every year instead of $20,000.00 for one year.

Also - you DO need to file taxes if you are a sole proprietorship!! It says "sole proprietorship" right on the top of the schedule C form. You must file taxes always no matter what type of business you run. The only time you do not file taxes is if you made no income.

You absolutely need to file taxes anytime you make any money!!! Period. -even if it's only $50.00 all year. If you don't -you are breaking the law. It's called tax evasion. You do not need the licenses though since the venues pay that.

In summary:
Get a good tax person. They will help decide the best way to use file your deductions and income.
Save all your business receipts.
Get liability & equipment insurance. Set up an LLC to further limit your personal liabilities.
Make sure your music is sourced from legal pools. Venues have to pay licensing fees to ASCAP, BMI, etc..., you do not.
In the US, your business must show a profit within 5 years or you have to convert it back to a hobby. Balance write offs with income to make sure you show a profit some years. For example, this year I have a residency that pays by check, adding $30k to my taxable income. I will purchase around $15k of gear that I will take a one time deduction for, rather than a depreciation credit over several years. This will limit how much additional tax I will have to pay next year.
Some slow years I've not taken all my deductions to make sure I showed a profit.

Either that or never give out your real name :p

Unfortunately, the more you have in life, the more you have to lose. Once you own houses, have kids and acquire some wealth, you have to fly somewhat straighter as the govt. can come down pretty hard if they decide to. The cost is much greater than when you're 22 with no assets, living in an apartment making 20k/yr.

They need to know who to come after first ;)

Just make those checks out to DJ Marshmellow from now on please.

LLCs are not that beneficial if you are a single-op company. If you are personally responsible for any injury to someone or property damage you will get sued directly. If you are a multi-op and an employee causes the injury or damage then they can only sue your company.

I realize this thread may be dead, but I found this on the ASCAP licensing site.

www.ascap.com

Aren't musicians, entertainers and DJ's responsible for obtaining permission for music they perform?

Some people mistakenly assume that musicians and entertainers must obtain licenses to perform copyrighted music or that businesses where music is performed can shift their responsibility to musicians or entertainers. The law says all who participate in, or are responsible for, performances of music are legally responsible. Since it is the business owner who obtains the ultimate benefit from the performance, it is the business owner who obtains the license. Music license fees are one of the many costs of doing business.

How do I go about getting a dj license in the united states

I've read the tax laws over and over. There's alot of incorrect answers above. First, there are benefits of registering as an LLC, but its not necessary. I have a full time job, and DJ weddings on the weekends. I do have a seperate dba account, and have listed my company with the IRS by including the income from DJing on my personal taxes. By doing so, I was able to write off all equipment purchased. I was even able to legally write off my truck and trailer. Not to mention, if you have a dedicated room in your house for conducting business or for storing your equipment, you are eligible for the home office deduction. That gives you the ability to take a portion of your mortgage, utilities (phone, internet, electric, etc.) and anything spent on upkeep of the home office. You can also claim all music subscriptions, software subscriptions and such.

Just talked to ASCAP and they wouldn't sell me a license as a mobile DJ. They said it is up to the host to obtain the music license. They also told me I did not even have to inform the host and I would not be held accountable as this is basic copyright law.

I even asked ASCAP what all this covered outside of retail establishments. I am doing a party at a sorority house next month and they said it's still on them to obtain the license. Which leads me to believe, no matter the venue, we are not responsible.

In Australia, this never ever happens, but sometimes the regulatory body does random checks and demands to see the the source of your music, essentially they’re looking for receipts of all the music you played. So you get DJs having iTunes / beatport/ record pool receipts in their bags so they can show in case of a random check. In 10 years I’ve only heard of it happening a few times, for example this poor kid got fined an obscene amount of money. He was the unlucky one who was made an example out of.

Old but worth a read:

www.smh.com.au