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Why Incorporate a Band?

Incorporating your band will provide you with many benefits, including:

  • Liability protection: Incorporating will establish your band as a separate legal entity. Because the band is a separate entity, you and your bandmates will not be held personally liable for the band’s debts.
  • Record label protection: The music you create with your band can be owned by the band as a separate entity. This provides the record label with protection. Should you and your band part ways, there will be no dispute as to who owns the music.
  • Establishes member roles: When forming your entity, you can incorporate musician rights and responsibilities that ensure each member of the band understands what their role is.
  • Makes it easy to lease equipment: When you incorporate a band, you make it much easier to lease or finance equipment. Instead of an individual band member being liable for equipment debts and financing instruments, the equipment can be leased through the entity.
  • Tax benefits: In many cases, bands can also enjoy tax benefits after incorporating. Bands may be able to write off the deprecation of instruments purchased through the entity or debts incurred while touring.

Incorporate Musician – Choosing an Entity Type

The second question bands ask is: What type of entity should a band form?

The entity type you choose will depend on your needs. However, most bands will form an LLC. An LLC does not have as many corporate formalities and will allow you to incorporate musician rights and rules as you see fit. The LLC that you form will be overseen by an agreement that every member of the band will agree to. This gives you and your band the freedom to structure the company as you see fit.

Corporations and partnerships are also options, but may not be as beneficial. Corporations, in particular, tend to be more complex and require more responsibilities.

Still not sure what type of entity you wish to form? We can help you incorporate your band and walk you through the incorporation process.

How to Incorporate a Band

Incorporating a band is not unlike incorporating a traditional business. Once you have determined what type of entity you wish to form, you can obtain the necessary paperwork to establish the entity. Contact your secretary of state or the office responsible for registering your state’s corporations. Be sure to inquire about which forms you will need, the fees you will have to pay, and the instructions on how to proceed.

While it is possible to incorporate your band on your own, it may be worth considering a lawyer or taking advantage of services that will take care of the incorporating process for you.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.


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