June 13, 2022 at 12:36 pm #23570
I recently read an informative article in the July/August issue of Escapees magazine “Legal Advice for Aspiring Entrepreneurs”, but it did not address the specific situation my wife and I will find ourselves in when we start working full-time in the spring of 2019. I’m looking for someone who can shed some light on our situation and answer some vital questions.
I currently have an S-Corporation license in Maryland, but I will close this business as of December 31, 2018 in anticipation of our moving to Texas to establish our residence with an address through Escapees. Through this current company, I manage all income and expenses related to my Native American flute live performances, the sale of my Native American flute CDs, three self-published books, and photographs of my wife. Every month, the company also receives royalties from the sale of books and CDs through distributors and online sales, as well as royalties for downloading and streaming my music over the Internet; all of them are credited directly to the company’s bank account. As soon as the current company is closed, I will transfer all these revenue streams to an account with a new bank that has branches all over the country.
I plan to continue to perform periodically as we travel around the country in our van, and we will continue to sell our books, CDs and photos online and at performances. We will also continue to receive royalties from CD and book sales. Since we will not be permanently living in Texas and will not have an “office” there, we are not sure which category our business will belong to, based on an article in Escapees magazine. What we are going to do does not fit into any of the business categories mentioned in the article.
I read that our type of business, due to its projected minimum income and expenses, may fall under the category of “hobby business”. However, I have not been able to find information about this category of business that outlines specific legal criteria in Texas for such a business.
Can anyone shed some light on our predicament?June 13, 2022 at 5:57 pm #23571
Nice thread. Thanks for the answers! I was struggling with the same questions, too, and now I can tell that what I need now is good legal advice.
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