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By Mark Battersby

Is your DJ business designated as an S corporation, partnership or sole proprietorship — aka a “pass-through?”

If so, you might be in a losing proposition. You might’ve heard that the Trump Tax Cuts and Jobs Act (TCJA) lowered to 21-percent the tax rate for incorporated businesses — aka C corporations. But for DJs operating as a pass-through entity, they could face personal tax rates as high as 29.6-percent. Ouch.

How? With a pass-through entity, the business’ income and losses are passed on to the owner’s personal tax returns and taxed at their personal tax rate, which may be higher than the new, lower tax rate for incorporated businesses.

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