When dreaming of and preparing for your own private practice, read everything available and talk to anyone you can about… everything! For this serial, let’s explore which business structure is right for you. Let’s say you want to keep it simple and work under your own name as a sole-proprietor, perhaps filing a “doing business as” (DBA) or fictitious name. If you’re seeking some legal protection and a sense that clients will perceive you as a “legitimate” organization, filing as an Limited Liability Company (LLC) may be a good fit. As your revenue ramps up or if you plan on hiring more employees, perhaps you will file for a C Corporation, or elect to be taxed as an S Corporation. Do you aim to run on donations and/or grants? Consider opening a tax-exempt non-profit organization (NPO).
Stay tuned! The Rhythm & Reason Blog will share basic info on those legal structures most common among Music Therapy businesses using the tag “business legal structures.” Please note that this serial is for educational purposed only, and can not substitute for independent research and consultation of a legal professional.
Internal Revenue Service. (n.d.) Starting a Business. Retrieved from https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Starting-a-Business
U.S. Small Business Administration. (n.d.). Starting & Managing. Retrieved from https://www.sba.gov/category/navigation-structure/starting-managing-business