Financial Tips for Emerging Artists: Top 10 FAQs Answered By Our Entertainment Team

Navigating the financial side of an artistic career can be overwhelming, especially for those just starting out. DMCL’s Entertainment & Business Management team—Partners Donna Branston and Christina Chi—recently sat down with us to address some of the most common questions they hear from emerging artists. Here’s what they had to say:

1. How do I start managing my finances as an artist?

Christina: “The first step is really just to start tracking your finances. It’s so easy to let things pile up, and then suddenly, you’ve got a whole year’s worth of expenses to sort through. That can be completely overwhelming—especially for artists who aren’t necessarily ‘numbers’ people.”

Donna: “Exactly. We always tell artists, don’t wait until you’re making a ton of money to start tracking things. Even if you’re just getting started, keep records. Use Excel, or if you want an actual accounting platform, Wave is a free option, while QuickBooks has a monthly fee. The key is not to let it get out of control.”

2. What are the most common financial mistakes emerging artists make?

Donna: “Waiting too long to ask for help. Hands down. New artists often put off talking to an accountant because they think they don’t need one yet. But by the time they do come to us, they’re usually in cleanup mode, which is a lot more expensive and stressful.”

Christina: “And the second big mistake? Incorporating too early. We see it all the time—artists thinking, ‘Oh, I should set up a corporation now,’ without actually knowing if it makes financial sense for them. The cost-benefit just isn’t always there. It’s important to consult an accountant before taking that step.”

3. Should I register my business, and is that the same as incorporating?

Christina: “Not exactly. Registering your business name is one thing, but incorporating is a whole other level that comes with additional costs and responsibilities. Whether or not you should incorporate depends on how much money you’re making and how you’re spending it.”

Donna: “Right. If you’re earning a lot but also spending all of it, incorporation might not make sense yet. But if you’re bringing in significant income and reinvesting in your career, there could be benefits—like liability protection and potential tax savings. The key is knowing when it’s the right time.”

4. What expenses can artists claim as tax deductions?

Christina: “Anything directly related to developing your career or generating income. That includes things like recording costs, studio time, touring expenses, and even aspects of your public image.”

Donna: “Yeah, for performing artists, things like hair, makeup, and styling can sometimes be deductible. But if you’re just a producer working behind the scenes, that wouldn’t really apply.”

Christina: “We also get asked about tattoos, piercings, gym memberships—things a traditional accountant might not expense. But in our industry? If you can justify it as part of your work, it’s often claimable.”

5. When do I need to register for GST/HST in Canada?

Donna: “Once you hit $30,000 in gross income over any four consecutive quarters, you need to register for GST/HST.”

Christina: “And that’s across all your income streams combined—so if you’re doing session work, performing live, and selling merch, it all adds up.”

6. How do I handle cross-border tax obligations if I perform in the U.S.?

Donna: “Get an accountant. No, really—don’t try to handle this on your own. The moment you start performing in the U.S., you’re creating a tax filing obligation.”

Christina: “Ideally, you should get advice before your first U.S. performance, but even if it’s after, there are still things we can do. The key thing to know is that if you’re earning money there—especially through live performances—you will have tax responsibilities.”

7. How do withholding taxes work in the U.S.?

Christina: “If you’re a non-resident earning money in the U.S., there’s typically a 30% withholding tax on your fees. But that’s something the promoter handles—it’s not something you file yourself.”

Donna: “The important thing to know is that you might be able to recover some of that tax, but you have to file a U.S. tax return to do so. It’s also a cash flow issue—if you don’t plan ahead, it can really mess up your budget while on tour.”

8. When should I hire a business manager?

Donna: “When it becomes too much to handle on your own.”

Christina: “For a lot of bands, there’s usually one person managing the finances. But as things grow, it gets overwhelming fast. That’s when we step in—when it’s too much for one person to track and manage.”

9. How can I protect myself from being taken advantage of in the industry?

Donna: “Stay involved, even at just a high level, in your finances. It’s your money after all and you deserve answers to any questions you might have—and there are NO stupid questions.”

Christina: “Work with CPAs or professionals who have accountability. We have regulatory oversight, we carry insurance—things that some independent ‘business managers’ don’t.”

10. How can DMCL help artists manage their finances?

Christina: “We help artists understand their finances, not just track them. Whether it’s budgeting for a tour, figuring out if incorporation makes sense, or handling cross-border tax issues, we make sure artists know what’s happening with their money.”

Donna: “And beyond that, we also make sure they’re set up for success long term—whether that’s with the right business structure, tax planning, or just having the right financial habits in place.”

Final Thoughts

Donna: “At the end of the day, your creative work is your business. You wouldn’t start a company and ignore the finances—you shouldn’t do it with your career either.”

Christina: “Exactly. Whether you’re just starting out or scaling up, getting the right financial advice early on can save you so much time, money, and stress down the road.”

Building a successful career in the entertainment industry isn’t just about talent—it’s also about making smart business decisions. By staying informed, tracking your finances, and working with professionals who understand the unique challenges of the music and entertainment world, you can set yourself up for long-term success. If you’re looking for tailored financial guidance, DMCL’s Entertainment & Business Management team is here to help.