Do you create an LLC if you want to teach?

[farasharaks]

Hello, please forgive me if this question has already been answered. Do you need to create an LLC in order to get paid for teaching in a studio? I'm doing some research and looking into teaching very soon, but a lot of the information I find is a bit overwhelming! Could you just approach a studio and offer your classes, or do you have to have an entity or business that exists in order for you to collect payment? I just want to do the right thing, I understand the basics of starting a business, I have a bachelor's in business but in regards to starting a bellydance business, if you are just starting and you have limited funds; What is the bare minimum you would need to teach, perform, etc. Thank you! Please let me know if you feel this question has been answered before sorry!

 

[Amulya]

It depends on the country you're in. Where are you?

 

[Shanazel]

Do you need to create an LLC in order to get paid for teaching in a studio?

Where I live the answer is a resounding "NO!" I've taught in studios, private athletic clubs, parks and rec, and university programs and never needed any such thing.

 

[farasharaks]

Ok, thank you, I wasn't sure if this was necessary in order to collect payment. I'm in the USA in Florida.

 

[Samira_dncr]

It kind of depends on if you are an employee or an independent contractor. And even so, an LLC is not a firm requirement, there are other approaches you could take (ex: sole proprietor). I'll bet there is a local business resource center.

You'll want to find out whether or not the studio you are working at carries insurance and music rights or whether that is something you have to take care of yourself.

 

[Lara]

switching to an LLC instead of sole proprietor is more about protecting your finances and filing taxes than anything else. My accountant advised me on when it was a good idea to convert my store, it still doesn't make sense for my dance business yet. Small business center or accountant- either one should be able to help you figure it out.

(Caveat- I appreciate the local small business center, but they tend to be kind of stuck in particular ideas of what businesses should look like, which doesn't always apply to the arts, or new, innovative business models. Listen to them, see if they make sense with what you are trying to do, take what works and leave what doesn't. They helped me immensely get along with government agencies & basic book keeping, totally didn't get what I was trying to do and their promotional advice was out of date and not in line with the business model I developed. Every office is different, but take it all with a grain of salt!)