Do You Need Both BMI and ASCAP?

You may be familiar with BMI and ASCAP if you work as a music publisher, composer, or songwriter. Two of the biggest performing rights organizations (PROs) in the world are these groups. For the public performance of its members’ music, they are in charge of collecting royalties. But do you require both ASCAP and BMI?

The PROs that collect royalties for the public performance of music are BMI (Broadcast Music Inc.) and ASCAP (American Society of Composers, Authors, and Publishers). Over 1.1 million songwriters, composers, and music publishers are represented by the non-profit BMI, which was established in 1939. Over 790,000 songwriters, composers, and music publishers are represented by ASCAP, a company that was created in 1914.

The choice between ASCAP and BMI is a personal one. Both businesses provide comparable services and charge comparable prices. Both BMI and ASCAP collect performance royalties on behalf of its members, but neither organization collects royalties on mechanical works. For the replication and dissemination of their musical works, such as CD sales and digital downloads, composers and publishers are compensated with mechanical royalties.

Although BMI does not administer publications, they do provide a publishing administration service to their members. On behalf of its users, this service collects mechanical royalties. In addition, BMI provides a wide range of other services, such as workshops for songwriters, foreign royalty collecting, and song registration.

A writer does not require an EIN (Employer Identification Number) unless they are a corporation or have workers. Your Social Security number may be used for tax purposes if you operate as a lone proprietor. To create a company bank account or file taxes, you might need an EIN if you run a publishing or music business.

Taxes are paid by authors on all income, including those from book sales. Their income level and tax bracket determine how much they must pay in taxes. Authors can also write off costs associated with writing, such travel for research or office expenses for their home.

An author can act as their own publisher, but it takes a lot of effort and publishing industry expertise. In order to self-publish, the author must take care of every part of publishing, including editing, formatting, cover design, and distribution. For writers who desire more control over their work and a better royalty income, self-publishing can be a fantastic alternative.

Finally, your tastes and needs will determine if you require both BMI and ASCAP. Both businesses provide comparable services and charge comparable prices. Unless they are operating as a corporation or have staff, authors do not require an EIN. Authors can write off writing-related expenses when calculating their taxable income from book sales. An author can act as their own publisher, but it takes a lot of effort and publishing industry expertise.