Band bank account?

basshero1107 · #1 08-08-2009, 10:59 AM

So my band just made a bunch of money from a show we put together. About $300. Well...that's a lot for US...because we're all teenagers.

My guitarist's dad is our sound guy and mentor because he has lots of experience. He said that we could open a bank account for the band so we could keep track of our money easier. I'm the band 'treasurer' so I would be dealing with the money.

First of all, is this a good idea?
I don't know if this kind of money is going to be rolling too often.

Second, I was thinking it'd be better to make it a savings account because if it's a checking, then we might get too comfortable spending the band's money, which isn't good.

So, have at it. Any advice is warmly welcomed.

CapnSev · #2 08-08-2009, 11:01 AM

Not sure about a bacnk account

, but this might help:

Band Bank Account

basshero1107 · #3 08-08-2009, 11:16 AM

you replied AS i edited the title. haha.

thank you very much for your input. that helps a ton.
BUT, do you know if there is a way to send statements/notifications to multiple people? or is that totally dependent on the bank's rules?

steveksux · #4 08-08-2009, 11:52 AM

Quote:

Originally Posted by CapnSev

Not sure about a bacnk account

, but this might help:

Band Bank Account

At least he tried the search feature and didn't find any prior threads on band bacnk accounts before posting this one...

Randy

bertbassplayer · #5 08-08-2009, 11:57 AM

The best thing is whomever is to make it so whomever is mainly dealing with the money can't write the checks as well. In my band we have an account, but our "Treasurer" so to speak (the guy who makes the deposits and keeps the books) isn't a signer for the checks. It's basically an extra security measure so the Treasurer isn't tempted to go spend the money. It's also good to setup two signatures as well.

As for the need for a bank account? I don't know. It depends on how much money is coming in. If your only making $50 every once in a while, it might be best to just distribute the money among everyone when you get it and not mess with a bank account.

JohnMCA72 · #6 08-08-2009, 12:18 PM

A bank is going to require a tax ID number to open an account, which means you're going to have to create a legal "entity" for the band. That, or open the account as somebody's personal account & use their SSN.

Consider how you're going to deal with the disbursement of funds if/when the band breaks up. What do you want to happen if somebody decides they want to "cash out" & leave the band? What should happen if the guy who has the band bank account in his name leaves?

Once you start handling money in any way other than just distributing cash to the band immediately after it's paid, there are a lot of things that need to be dealt with. Be careful - too much "business" can take a lot of the fun out of music!

JM

steveksux · #7 08-08-2009, 12:21 PM

Just make sure you're the one to steal the money.

Seriously, bad idea. If you need to buy something together, get everyone to pitch in when you buy it.

You had one paid gig, now you need a band bank account? See if you can get a couple of gigs in a row first.

If you run the money through a band bank account, especially if its in someone's name, be prepared to do 1099s to everybody so the guy who's name the account is in doesn't get nailed for all of it at tax time.

Randy

PBassTX · #8 08-08-2009, 12:23 PM

John.... my thoughts exactly. You should always distribute the money immediately after it's paid.

phatbass · #9 08-08-2009, 12:23 PM

Just split the money. Unless the band is earning and spending serious amounts of green, it's honestly not worth the hassle.

Ric5 · #10 08-08-2009, 12:29 PM

quite a few bands that I quit still owe me money ... so for me joint owning something as a band is just another way to lose money.

hbarcat · #11 08-08-2009, 06:16 PM

Opening up a band bank account is a major hassle for a just starting out band that isn't taking in lots of regular money.

Best choice is to just split the money after the gig.

But if you are all in agreement that you must have a band fund then get a "lock box" and deposit band money into it and store it somewhere safe. Always keep an up to date log of exactly how much money is in it to discourage clandestine "borrowing" from the till.

Don't be surprised if the band fund becomes a major point of argument some time in the future no matter how good friends you are right now.

standupright · #12 08-08-2009, 06:33 PM

split 300 evenly and let it be that. band accounts, unless you are a working legal entity / professional band is more times than not, a bad idea.

xgator4u · #13 08-08-2009, 07:22 PM

Quote:

Originally Posted by JohnMCA72

Be careful - too much "business" can take a lot of the fun out of music!

JM

Issues over money have broken up many a band, business partnership, and marriage. BE CAREFUL. IME if everyone gets their appropriate cut immediately after getting the money, there are a LOT less arguments.

Stumbo · #14 08-09-2009, 12:39 PM

You might want to check out: Band "funds"?

IME, just divide the money and distribute it. Then there is nothing to "keep track of" for the band. If you have money in the bank, how will you decided to spend it? By vote? What if you don't agree with spending the money? Does it have to be unanimous vote?

From many threads posted on TB, band funds usually turn into problems.

Another thing to think about is that since everyone has spent money purchasing their equipment, earning money from gigs/shows helps pay for your stuff. Beyond that, I suggest that whoever hauled the equipment to the gig get some gas money and the rest be split.

Do you guys have a P.A.? If you do, who owns it? If everyone uses the P.A. and one guy owns it, sometimes money is set aside (for the owner) from each gig to pay for its usage/maintenance.

As an alternative, I've also read where each band member owns a specific part of the P.A. so when the band breaks up or anybody leaves, there's no argument about the equipment.