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How to Dominate a Big City DJ Scene

I recently connected with Megan, aka DJ Ree, an Atlanta-based DJ and promoter, and she had questions about insurance coverage for the DJs she books for certain venues and how that would impact her tax-wise.

A lot of the time, DJs and promoters end up doing contract work, which can get tricky when it comes to important administrative details like insurance and taxes. DJ Ree shared one example in which a hotel she recruits DJs for needs a separate certificate of insurance for each DJ they bring on. It’s a huge hassle for the hotel and it would help her business a lot if she could take it off their shoulders. But how?

One of your best options is to get incorporated. This way, you can get your own insurance coverage that the DJs can use, so the hotel doesn’t have to handle it. Because you’re taking a huge inconvenience off of the hotel’s shoulders, I’d be willing to bet that you can ask them to pay you more too–so your margins will increase.

You can also pay the DJs you book yourself and it’s a tax write off for you, so it’s kind of almost like a wash through in a way. You’ll only pay taxes on what’s leftover after you pay the DJs, not off the top line. You can also deduct more expenses when you’re incorporated. So, there are some major tax benefits.

Plus, being incorporated protects your personal money. If someone ends up being unhappy with something you or one of your DJs does and they want to sue you, they can only get at the money that is a part of your corporation–not your personal finances.

If you want access to more business advice, check out the full episode of the Business Whisperer episode that this came from on iTunesSpotifyStitcher, or right here.

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