Massage Business StructureThe most common forms of business for a massage therapist is sole proprietor and the limited liability company (LLC). Other business structures are a partnership or an S Corporation. The sole proprietor is usually the easiest to set up for massage therapists. As a sole proprietor, you are responsible for the income and expenses of the business and also any liabilities such as a lawsuit by a client. Your personal assets are at risk. You are the business basically. When you withdraw money from your business account is not considered a wage so it isn't a business expense. You pay self employment tax on any income that you make. The self employment tax is much higher than regular taxes and includes social security payments. A sole proprietor files a Schedule C form along with your 1040 form and a self employment form. Limited Liability Companies is a combination of a partnership and a corporation. LLC's have some of the benefit of a corporation offering some protection from liability. Being an LLC also separates your identity from your business which can also be psychologically advantageous as many massage therapists have a tendency of 'becoming their business' compared with someone who is working 'on' their business. You will need to work with an accountant and attorney to determine the best massage business structure for you. See also the IRS section on small business IRS Self employed business center IRS Self Employment Tax information Share your information on this topicVoice your information, opinion, comments or story on this topic.
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