Mobile DJ Business Advice

smck99

Hi all,

I bought decks a few years back and inevitably ended up DJ'ing house parties and friends birthdays. Soon after I started getting some paid gigs and now have a bit of a name in my area and DJ functions and bars semi-regularly for cash in hand.

I have been thinking about going legit and setting up a business as I want to really push myself as a DJ and as a name. Would it be worth my while to set myself up as a sole trader? Just wondering if anyone has been through this or a similar process and might have any advice for me.

I plan on buying a car and would like to claim it as a business expense and use it as a commercial vehicle. Also possibly upgrade my equipment sometime in the future, and write them off as business expenses. Also, I'm studying music production and would like to use the business to purchase any gear I buy for my career in the future. I plan on the business likely functioning as a name for multiple music related ventures in the future. Would this be allowed?

What sort of tax might I expect to pay on gigs? Are there any other pros/cons of setting this kind of business?

However, I am in my final year of college, with plans to do a postgrad next year and will most likely only be gigging the odd weekend. Will this affect me, my taxes, my company car eligibility etc etc?

Any advice/information would be much appreciated. Thanks in advance

smck99

Also, is it allowed to claim some equipment that I recently bought as a business expense? Or possibly "sell" them to my company?

lucky john

smck99 wrote: »

Also, is it allowed to claim some equipment that I recently bought as a business expense? Or possibly "sell" them to my company?

I think you might need to do a bit of business research before you set up anything. There is a big difference between setting up as a sole trader and forming a company. As a company director you will have plentIy of responsibility you need to fully understand before going down that route. The idea of selling your equipment to your company or buying a car through it is fine but the company needs funds to buy things. Either you put your own cash into it as a loan or you borrow it from a bank (assuming they will lend you it). Then there's audited accounts ect. When your up and running full time with a good steady income you could consider a company but there's no advantage doing it at the stage your at now.

A sole trader is simpler. All you really need to do is register your business name. Eg. Smck 99 productions. Straight forward and easy to do on CRO.IE. Set up a bank account to keep track of business related expences and receipts and off you go. . You can buy your equipment with a business cheque as an expence no problem (as long as there's money in the account of course.) At the end you the year if you make a profit you pay tax at the normal rates. If your good with figures you can even do your own accounts and submit them to revenue yourself without an accountant.

The 3rd option might be to just stay as you are. do the odd gig, finish your studies, do a start your own business course and take it from there.

smck99

Many thanks for the replies folks. I'm going to research further into it and arrange a meeting with an accountant in the new year.