When you are setting up your music teaching studio, forming an LLC (Limited Liability Company), is advised. This way, you can ensure you're protected from personal liability if you run into financial difficulties with your business. Once you start to make a profit, your venture may also be eligible for some tax advantages too. Forming an LLC shows your students and clients that you are a serious teacher who is operating transparently when it comes to taxes and finances.
Promoting Your Services
For your teaching studio to gain business, you will need to promote your services. Promoting your music online is one of the quickest and easiest ways to gain customers. Make the most of social media by setting up a Facebook and Twitter account for your business and posting relevant information regularly. You should also have your own website showing the type of music you teach and your prices. Highlighting the fact that you are an LLC in your advertising gives the message to your customers that you are running a professional business.
Make Your Payment and Cancellation Policies
Are you going to bill in advance? How many lessons do students have to pay for? How are you collecting payment? Make sure to be clear on your payment terms, and present them in writing to students (or their parents). You also need to make your cancellation policy clear. You are running a business in order to make a profit — students should give adequate notice so you can organize new lessons to replace your lost income. All business policies should be made in writing, so you have clear guidelines should there be any dispute.
Record Keeping for Music Teachers
If you have your teaching studio in your home, you may be able to claim some of your household expenses when calculating your annual taxes. Make sure to keep records of all income received. You should also keep copies of your relevant bank statements and all receipts related to business expenses. This can be anything from internet bills to the cost of sheet music. If you are using an accounting service to submit your taxes to the IRS, then you can give them this information.
When you're setting up your music teaching studio, make sure to keep on top of all the records from the start. This will help you run a professional and organized business.
Jess Walter is a professional freelance writer with many years experience across a variety of sectors. She made the move to freelancing from a stressful corporate job and loves the work-life balance it offers her.