If I am teaching piano and voice lessons in my home in the state of virginia do I need to file as a business?

My husband and I teach private and group music lessons out of our home.
I want to make sure that we are doing everything that we need to do.
Should I file as a LLC or apply for a DBA?

Asked on March 19, 2017 under Business Law, Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You should set up an LLC. Doing so will help protect you from any business-related debts or liabilities (e.g. if a disgruntled or dissatisifed customer sues); it will also facilitate taking business expenses (e.g. instruments? recordings? books of music?) as tax deductions, since if you have a separate LLC account and/or credit card, it creates a stronger, clearer record that the expense was business related. The cost to set up the LLC is itself deductible. And if you elect "partnership" (not "corporate") tax treatment, the LLC will be a "disregarded" or "pass through"entity and there will be no double taxation. 


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