[Bobby Burrows]

So I've gotten my CAE/IPI from PRSforMusic...
I've gotten this band I've founded a LTD (LLC)...
I've yet to use it for that and probably should use my company/band to pay for EVERYTHING GUITAR/music related...

My one day hope is to add up all the receipts I have, and pay myself back; like, put it into my company account, then the company/band pays it into my current account and with a reference most probably like 'artist expenses from 1999 - 2018' or however long and can afford, just so that I can make up for NOT being bright enough to do it yet..
Call it 'the band' bank account, make it pay for my guitars with my money, from strings to whatever.


Any other paper work worth doing, knowing, having?


All I had to do to join PRS was pay the admin fee (which back in early 2012 was £30.00/it's now gone up in price but it's a lifetime + 50 years after your death kind of thing in the UK/US I believe).. I had to prove I was eligible to work in the UK; had to send them copies of my UK Passport I remember, and give them my NI number, and my bank account details).. And wait 30 days to generate my CAE/IPI.

[Boydie]

I am not understanding why you are using a ltd company rather than just becoming a sole trader and doing a self assessment tax return?

[Ramshackles]

There are some advantages to having a private ltd company over sole trader.
Tax wise, if it makes enough money you can pay yourself dividends on which you will pay far less tax. Legally wise, if the company were to go under, non of your personal assets (e.g house) can be taken off you, which I believe isn't true for sole trader.

However, I don't really see the point of setting up a company at all in this scenario.... Where is your income coming from?

In my case I have a private ltd company for Ramshackle Recording. I strive to make no profit by putting all music-related purchases as expenses. Looks like I will fail this year, but I can either keep the profit 'in the company' or pay it to myself as a dividend to reduce tax

[Bobby Burrows]

I am not understanding why you are using a ltd company rather than just becoming a sole trader and doing a self assessment tax return?

Correct.
It's about corporate tax returns and my company having its own number.

[Bobby Burrows]

There are some advantages to having a private ltd company over sole trader.
Tax wise, if it makes enough money you can pay yourself dividends on which you will pay far less tax. Legally wise, if the company were to go under, non of your personal assets (e.g house) can be taken off you, which I believe isn't true for sole trader.

However, I don't really see the point of setting up a company at all in this scenario.... Where is your income coming from?

In my case I have a private ltd company for Ramshackle Recording. I strive to make no profit by putting all music-related purchases as expenses. Looks like I will fail this year, but I can either keep the profit 'in the company' or pay it to myself as a dividend to reduce tax

I agree, I'd never like go to sole trader.
My income's coming from my job, agency worker in Construction.

Had to become a contractor too and get my UTR number for one company who hired me from my agency for a job, and now I have a UTR (Unique Tax Reference) number too.

[Boydie]

I know the advantages of a ltd company - and it makes sense for something with assets or to protect personal assets but I didn't understand the advantage for a songwriter/musician in this scenario

[Bobby Burrows]

I know the advantages of a ltd company - and it makes sense for something with assets or to protect personal assets but I didn't understand the advantage for a songwriter/musician in this scenario

Call it the band's bank account, and use it to make my guitar purchases instead of my current account, making my LTD my band's account since they both have the same name.
It's one thing I can think of to utilise my LTD at least.

Every string change, polish, part and instrument is a business expense if I'm to get serious about becoming a musician/composer.

[CaliaMoko]

I've been following this thread and, like Boydie, I wonder why you need the LTD over the "sole trader" (which I'm assuming is a closely held corporation versus a sole proprietorship). And @Bobby Burrows ... it sounds like you might be saying you already had the LTD for another reason before? And that reason no longer exists, so you're using it for your music, simply because you have it. To keep it active. Is that right? Because it sounds like the "sole trader" approach would work for what you're describing. There's no reason you can't open a second personal bank account just for your music business, is there? That's what I do.

Incidentally, in the United States, it isn't legal to take dividends instead of a wage (from a corp), although you can certainly take dividends in addition to a wage, as long as the wage is a reasonable amount. The government doesn't want to get "cheated" out of taxes, you see.