For performers, musicians, and producers

Many payers, many states. One company to hold it

Performers, musicians, and production companies get paid by a dozen payers across a dozen states, with royalties and rights layered on top. A loan-out company can hold all of it, cut your tax, and put a shield between you and a claim. We form it and handle the multi-state, royalty, and merch pieces.

Loan-out protection Rights organized Multi-state handled
The setup behind performers, musicians, and producers Loan-out company Rights and royalties organized 4.9 from 8,200+ reviews Multi-state income handled
Loan-out
One company holds your fees, royalties, and rights
S-corp
Elected when income makes it cut your tax
Multi-state
Performance income and withholding, organized
Merch
Sales tax on merch handled on the road
Why performers set up a company

Your income comes from everywhere. It should land in one place

A working performer is paid by venues, promoters, labels, streaming services, and sync placements, across states, with no tax withheld and rights attached to every song. Handled personally, that is a tangle of 1099s, surprise nonresident taxes, and unclear ownership. A loan-out company holds all of it, so income routes through one entity, deductions are clean, and an S-corp election can cut your self-employment tax.

We form the loan-out, elect S-corp treatment when it pays, organize your rights and royalties, and handle multi-state performance income and merch sales tax, so the business keeps up with the career.

Paid personally
  • A dozen 1099s and no entity
  • Self-employment tax on everything
  • Surprise taxes in touring states
  • Rights and splits undocumented
  • Merch sold with no sales tax
Set up on File.Business
  • A loan-out that holds the income
  • S-corp election that cuts the tax
  • Multi-state income organized
  • Rights and royalties documented
  • Merch sales tax handled on tour
When the company starts to pay off

Slide your income, see the right structure

A loan-out and an S-corp election are powerful once you earn enough. Move the slider to see where your career sits, and what fits.

Your yearly income from performing 60,000
loan-out
S-corp
0125k250k+
Time for a loan-out
Route your income through one company and deduct cleanly
Wherever you land, income you earn performing in another state is taxable there, and many states withhold from nonresident performers. We keep the entity and paperwork organized for touring. S-corp election.

A guide, not tax advice. The exact thresholds depend on your expenses and a reasonable salary; we set the structure up and flag the election with your accountant.

How your loan-out gets set up

From gig money to a company that holds it

Five steps, in the right order. Select one to see the detail.

Step 1

Form the loan-out that holds your income

Instead of being paid personally, you set up a company that loans out your services and receives your fees and royalties. It centralizes your income and puts a shield between you and a claim. We form it in your state, with fees passed through at cost.

One company between you and every payer.
Loan-out: FORMED
Liability separated
Ready to be paid
Step 2

Get your EIN and business banking

The EIN is the company's tax ID, and a business account is where your fees, royalties, and merch income land, kept separate from your personal money so deductions and payouts are clean.

One account for fees, royalties, and merch.
EIN: ISSUED
Business banking opened
Ready to route income
Step 3

Elect S-corp and organize your rights

When your income supports it, we file the S-corp election so part of your pay is distributions rather than salary, reducing self-employment tax. We also organize your rights and can register copyrights in your songs and masters.

Tax reduced, rights registered. Copyright.
S-corp: ELECTED
Rights registered
Tax and ownership clean
Step 4

Handle multi-state income and merch tax

Performing in other states creates income and often nonresident withholding there, and merch sold at venues is taxable in the show's state. We keep the multi-state paperwork organized and register sales tax so merch on the road is handled.

Touring income and merch tax, organized. Sales tax.
Multi-state: ORGANIZED
Merch sales tax set
Tour-ready
Step 5

Scale into production and keep it clean

As you take on crew, run productions, or launch side ventures, worker classification, work-for-hire agreements, and sometimes separate project entities appear. We handle the registrations and flag when a project deserves its own company.

Crew, projects, and filings in the calendar.
Filings: TRACKED
Crew classified
Clean as you grow
How this compares for a performer

Built for a loan-out and the road, not a generic filing

Most setups skip the S-corp, the multi-state income, and the rights. Here is the difference.

CapabilityFile.BusinessDIY formsLocal bookkeeperGeneric filer
Loan-out formationForms onlyNot availableFormation only
S-corp election filedNot availableSometimesAdd-on
Multi-state income organizedNot availableVariesNot available
Copyright registrationNot availableNot availableAdd-on
Merch sales tax at venuesNot availableVariesPer filing
Transparent, published pricingHourlyPer filing

The honest version. A music or entertainment attorney is worth it for splits, sync, and label deals, and a business manager for touring finances, and nothing here is legal advice. What File.Business does is form the loan-out, file the S-corp election, organize rights and multi-state income, and set up merch tax, so your team focuses on the deals. Compare on the comparison hub.

BosAI for entertainment

An operator who knows the entertainment playbook

Ask in plain English. BosAI knows loan-outs, multi-state income, and merch tax.

BosAIOwner workspace, Nightfall Touring

Everyone says get a loan-out. What does it actually do for me?

A loan-out is your own company that gets paid instead of you, then pays you. It centralizes income from every payer, separates liability, opens up business deductions, and once you earn enough, lets you elect S-corp treatment to cut self-employment tax. I have modeled where your income sits and it is at the point where this starts to pay.

I toured five states last year. Do I owe tax in all of them?

Likely in several. Income earned performing in a state is generally taxable there, and many states withhold from nonresident performers, sometimes called a jock tax. A touring artist can file in many states. I have your show income organized by state so nothing gets missed and you get credit for what was withheld.

Do I charge tax on merch at the shows?

Usually yes. Physical merch is taxable in the state where the show is, and some venues collect it while others leave it to you. I have your sales tax set so you can collect correctly on the road, and we track which venues handle it for you. See sales tax.
From an artist

The business finally kept up with the tour

My income was a mess of 1099s from labels, venues, and streaming, and I was paying self-employment tax on all of it. File.Business set me up with a loan-out, filed the S-corp election, and organized my touring income across states so I stopped overpaying and double-paying. They registered my merch sales tax too. For the first time the business side felt as handled as the music.
Artist
Touring musician
Loan-out
holds every payer
S-corp
cut the tax bill
Touring
multi-state, organized

Representative composite based on performer outcomes. Nothing here is legal or tax advice; consult your professionals for your situation.

For the questions performers actually ask

Straight answers on loan-outs, royalties, and tax

What is a loan-out company?
A loan-out is a company, usually an LLC or corporation, that you own and that loans out your services. Instead of being paid personally, your fees and royalties are paid to the company, which then pays you. It centralizes your income, separates liability, opens up business deductions, and lets you elect S-corp treatment to reduce self-employment tax once you earn enough.
When is a loan-out worth setting up?
When your income becomes steady and meaningful. Emerging performers can often just report on Schedule C, but as your earnings grow, routing them through a loan-out and electing S-corp treatment can cut self-employment tax, subject to a reasonable salary, and cleans up how you contract and deduct. We flag the point where it starts to pay. See S-corp election.
How does performing in other states affect my taxes?
Income you earn performing in another state is generally taxable there, and many states require the payer to withhold tax from nonresident entertainers, sometimes called a jock tax. A touring artist can owe filings in many states. We help you understand the exposure and keep the entity and paperwork organized for it.
Who owns my songs and recordings?
You own the copyright in a composition or recording on creation, split between the song and the master, unless a written work-for-hire or assignment changes it. Registering with the US Copyright Office strengthens your ability to enforce it. We handle the entity and can file registrations; a music attorney is worth it for splits and label or sync deals. See copyright registration.
Do I charge sales tax on merch at shows?
Usually yes. Physical merch sold at a venue is generally taxable in the state where the show is, and some venues or promoters handle it while others leave it to you. We register your sales tax and set up collection so merch sales on the road are handled correctly. See sales tax registration.
Should each project have its own entity?
Sometimes. A one-off film, a large production, or a partnership can deserve its own entity to contain its risk and finances, while your ongoing performing income runs through your loan-out. We help you decide when a project warrants a separate company and set it up. See the multi-entity dashboard.
Do production companies need anything different?
Yes. A production company hires crew and talent, so it takes on worker classification, work-for-hire agreements that assign rights, permits for shoots, and sometimes payroll. We form the entity and handle classification and registrations; a production attorney handles the deal-specific contracts.
Does this replace my music attorney or business manager?
No, and this is not legal or tax advice. A music or entertainment attorney is worth it for splits, sync, and label deals, and a business manager for touring finances. File.Business forms the loan-out, files the S-corp election, sets up sales tax, and can register copyrights, so your team focuses on the deals. Talk to us.
Routed, protected, and organized

Put a company behind the show

Form the loan-out, elect S-corp when it pays, and let us organize your rights, multi-state income, and merch tax. Start now, or talk with our team about your career.

SOC 2 Type II · Not a law firm · State fees passed through at cost