Atlanta rap veteran Killer Mike recently dished out some music industry advice for hip-hop newcomers and stressed the importance of setting up an LLC (limited liability company).
According to Mike, having your financial paperwork in order will help avoid tax-related problems later down the road.
“Go ahead and set up the LLC to your company so you’re paid properly and your company is paying you. A lot of us, including myself, bumped into tax issues because we weren’t savvy about how we were diversifying our money. Everyone should get a sharp-a** accountant right off the top.” (XXL Mag)
Philadelphia rapper Beanie Sigel is currently preparing for a two-year jail bid for tax evasion.
“I was Al Capone,” the Broad Street Bully said on Wednesday’s “RapFix Live.” “You can’t get me on this, you gonna get me on that, can’t get me on that, so you know the Al Capone story — taxes.” Capone was linked to a Chicago-based crime syndicate in the 1920s. He was said to be involved in bootlegging, prostitution and murder, but it was tax evasion that the storied gangster was ultimately convicted of. Sig went on to attempt to illustrate his point. “If I fix your roof and you wanna pay me in 20 pounds of bananas, do you think Uncle Sam wants 45 percent of my bananas,” he tried to reason. “But because you paying me $400,000 in currency he wants a part of that, but my mom don’t got no brother named Sam, so I don’t have no Uncle Sam.” (MTV)
Grammy-winning singer Lauryn Hill reportedly owes over $2 million in federal and state taxes combined.
In addition to failing to pay a $1.8 million tax bill from the federal government, Lauryn Hill also failed to pay $440,000 in taxes to the State of New Jersey. A week before a judge ordered Hill to pay the $446,386 in unpaid state taxes, she was charged with failing to file federal tax returns in 2005, 2006, and 2007–a federal crime. The Fugees singer pled guilty and now faces three years in prison. (Business Insider)
She also faces time behind bars for falling behind on taxes.
Hill, 37, a hip hop singer and rapper best known as a member of the Fugees and for a Grammy-winning 1998 solo album, pleaded guilty to failing to file federal returns between 2005 and 2007, despite an income of more than $1.8 million primarily from film and recording royalties. Her sentencing date was set for sometime in late November. She was released on $150,000 bail. (Reuters)
Check out a recent Killer Mike interview below: