umm that's exactly my pointDal-Tech wrote: This is true to a point. With the IRS *you have* to be trying to make a profit which is hard today releasing vinyl. So getting a business liscense just to release wax if it isn't producing profit will not be a viable business.
The only way around this is if you are a sole propieter or LLC that makes money doing business with something else. So if you make money in the Art and Design field you can have a vinyl label and treat the loss as a write off. It could be viewed as promotion part of your art business.
that's why you can show a loss.... yes. a non viable business may show a loss. which is why it isn't "viable" or profitable......
sure. but that doesn't mean you can't try.This is true to a point. With the IRS *you have* to be trying to make a profit which is hard today releasing vinyl
p.s. also you dont need a sole proprietor or LLC to file a D.B.A. at the county and claim your expenses as write off's.. new business are encourage here in the states. so to say the "only way" isn't truth what-so-ever. if your showing profits into the 1000's, then sure go ahead and get an LLC perhaps. and even then, based on variables you should talk to an accountant. There may be variations based on number of employee's ect... as well as the type of product or service...but there may never be a need to do a llc with just one person releasing/pressing vinyl.