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Thread: starting a small business (music publishing), have filing questions

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    Default starting a small business (music publishing), have filing questions

    I'm based in Michigan.
    The publishing company will initially be a vehicle for my own music, but I'm hoping to expand it to other artists as a quasi-record label.
    So being a small, personal operation, the tax rate is not a major concern, as far as which state to file - but it always could be.
    I know that filing an LLC in my home state of MI is only $50, but I also know there's a reason why people choose to file in Delaware or Nevada rather than their home state. But, unfortunately, I'm *not* exactly sure what those reasons are.
    Also, I'm not sure if I should be filing as an S-corp, C-corp, or an LLC. In the present day filing as an LLC might make the most sense, but in a best-case scenario (i.e. success), there might be an impact.
    Clearly my head's above water here, so I would greatly appreciate any guidance that can be provided to me.
    Thank you very much.

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    Post Impressionist Array vangogh's Avatar
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    The reason people file in Delaware and Nevada has nothing to do with the price of incorporating. Both states offer benefits to corporations, though I think the benefits are mostly for larger corporations and not smaller ones. If you search for "why do businesses incorporate in Delaware" and the same for Nevada, you can find lots of lists of the specific benefits.

    Here's a good resource for LLCs. If you look at the links down the left you'll find articles comparing LLCs to S-Corps and C-Corps. They should be enough to help you decide.

    Hope that helps.
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    hello world Array Harold Mansfield's Avatar
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    I can say from experience that people set up in Nevada because there is no State income tax. There's property tax, gaming tax, room tax. sales tax. and DMV registration is ridiculous, but no state income tax. They also ding you on other fees depending on your business, work cards and so on. But if you make $1 million in non gaming income here, the only income tax people you have to please are the feds.
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