Although your band may not be a typical corporation, incorporating might give you and your bandmates with various benefits.
What you’ll discover:
Why Should You Become a Band?
What kind of organization should a band form?
How to Organize a Band
If you’re like most musicians, you don’t think of your band as a business. Bands who are serious about a career in music, on the other hand, should consider incorporating as soon as feasible. Although you are not operating a typical corporation, incorporating might give you and your bandmates with various benefits.
Table of Contents
Why Should You Become a Band?
Including your band will give you with several advantages, including:
Liability protection: Establishing your band will create it as a distinct legal organization. You and your bandmates will not be held personally accountable for the band’s obligations since the band is a distinct entity.
Record label protection: The music you make with your band might be owned as a distinct company by the band. This shields the record label from liability. If you and your band break up, there will be no question about who owns the song.
Determines member roles: While establishing your corporation, you might include musician rights and obligations to ensure that each member of the band knows their position.
Makes leasing or financing equipment much simpler: When you integrate a band, you make it much easier to lease or finance equipment. The equipment may be rented via the corporation rather than each individual band member being accountable for equipment debts and financing instruments.
Tax advantages: In many circumstances, bands may benefit from tax advantages after incorporating. Bands may be able to deduct the depreciation of instruments acquired via the company as well as debts incurred while on the road.
What kind of organization should a band form?
The entity type you choose will be determined by your requirements. Most bands, though, will incorporate an LLC. An LLC is less formal than a corporation and allows you to include musician rights and regulations as you see appropriate. The LLC you create will be governed by an agreement signed by all members of the band. This allows you and your band to establish the organization as you see suitable.
Companies and partnerships are other viable possibilities, but may not be as advantageous. Companies, in particular, are more complicated and have more duties.
Still unsure about the sort of entity you want to create? We can assist you with incorporating your band and lead you through the procedure.
How to Organize a Band
Forming a band is similar to forming a standard company. You may collect the appropriate papers to create the entity after you’ve selected what sort of entity you want to construct. Contact the secretary of state or the entity in charge of registering companies in your state. Inquire about the paperwork you’ll need, the costs you’ll have to pay, and the steps you’ll need to take.
Although you can incorporate your band on your own, it may be worth considering hiring a lawyer or using services that will handle the incorporation procedure for you.
