Coli music execs, managers, A&R’s etc. Get in here

[L&HH]

They wont clear that. Mgmt and agents take the biggest chunk. And they take from gross (50K). So even if you are left with 30K after the manager, road manager, and agents get their fees you still pay/owe taxes on 50K gross. So deduct another 15K for taxes and you are left with just 15K for the artist. This is how a lot of artist get into tax trouble and owing millions to uncle sam.

I ain't an accountant but there's no way they should be getting taxed on 50k if they're paying managers and whoever else off that. how do they not get a deduction from that?

 

[Excellenceofelegance]

Naw the artist is only paying taxes on the gross (50k), 15K is 30% and the rest is after taxes. His point is that they're not making out individual checks out to the manager and etc, it's made out to the artist who then takes on the tax burden. There are ways to write off some of those taxes (you're basically an employer in that scenario) but most artists are not savvy to those sort of things when they first get to that level.

But yeah to your point, managers and agents take an arbitrary 10-15% which is irrespective of the required budget for the show. The artist is basically only making enough to put on the show, not to bank off of it. That's why shyt like merch is crucial to turning a profit.

Personal manager 20% (standard percentage)
Booking agent 10%
Tour manager 5%

Thats 35% already gone from 50K= $17,500


Now Dj $500,Photog 350,security 500

Now we at net $16,150, taxes do need to get paid so 50k taxed in let’s say the show was in Texas (gotta pay $8,120 in tax) Now the artist only got $8,030


Of course this just before you write off some taxes like you said