Professional actors, athletes, authors, and musicians have one thing in common: they are all typically high-net-worth individuals with complex financial needs. As a person in high demand with a busy schedule, there is less time to manage the many financial aspects of income and investments. With the help and advisory services a business manager offers, entertainers can all but eliminate complicated financial affairs from the proverbial to do list.
There are several benefits to hiring a competent business manager. A trusted business manager will maintain financial records throughout the year making tax season less stressful and provide tax planning and strategic advice based on the individual’s specific situation or tax law changes. In addition, they can also assess and, if applicable, set up a loan out corporation, which is a commonly used tax strategy that offers benefits to entertainers, and comes with additional record keeping requirements and tax compliance responsibilities.
While there are innumerable benefits to hiring a business manager, there are also potential risks due to the nature of the situation. Financial records must only be given to a trusted professional that understands the unique tax, accounting, and financial planning needs of the entertainment and sports industry…Continue here »
KROST Quarterly is a digital publication that highlights some of the hot topics in the accounting and finance industry. Volume 2, Issue 4 highlights some of the hot topics in sports & entertainment including tax issues for athletes, Loan-Out Corporations, Qualified Business Income Deduction, and more.