Is your band incorporated or have you formed an LLC?

[mrpackerguy]

If so, why? If not, why not?

[realdeal]

In my case...
I'm the Contractor for a full rhythm section that backs a Female Lead Vocalist / 2 back-up Singers.
We perform Fridays-Saturdays in an upscale lounge and have been doing so for the last Year and 1/2.
The engagement is contracted in 3-month increments; renewable.
For this, I did not incorporate, but instead operate as a DBA-

The money from the engagement is paid out to me (as the Contractor), then deposited into an account, which was opened under the DBA.

I pay the other musicians as Independent Contractors, the income is reported on a 1099, they must deal with the tax liability, as do I.

I'm responsible for Income tax on the funds deposited into the DBA, but of course they are offset by all expenses incurred, including payroll. And so on...

To be truthful I HATE the "business aspect" of playing R&B in most respects, but someone's gotta do it, and I was the one who went and booked the engagement...so-

[Bergerdude]

So our guitarist buys a portable stripper pole.
The other guys think it is hilarious, well...it kind of is.

However, I am concerned over the potential liability of this thing.
We are not an LLC, but I wonder if we NEED to be an LLC pronto to protect our individual savings from this liability.

Drunk people swinging around on a pole...has disaster written all over it, doesn't it?

Thoughts?

[fenderhutz]

Originally Posted by Bergerdude

So our guitarist buys a portable stripper pole.
The other guys think it is hilarious, well...it kind of is.

However, I am concerned over the potential liability of this thing.
We are not an LLC, but I wonder if we NEED to be an LLC pronto to protect our individual savings from this liability.

Drunk people swinging around on a pole...has disaster written all over it, doesn't it?

Thoughts?

When is your next gig?

[NorCal Dog]

Originally Posted by Bergerdude

So our guitarist buys a portable stripper pole.
The other guys think it is hilarious, well...it kind of is.

However, I am concerned over the potential liability of this thing.
We are not an LLC, but I wonder if we NEED to be an LLC pronto to protect our individual savings from this liability.

Drunk people swinging around on a pole...has disaster written all over it, doesn't it?

Thoughts?

photos ?

[Bergerdude]

Ha! I see I am getting all the lawyers to respond!

[DW1969]

One of the bands I'm working with will be inc. Several reasons i'm told so far is when we sell stuff, shirts, CD's ect., we will have a tax ID# and we will have the corporate shield in case of law suits ect.
Operating as a DBA is a risky thing as someone could come after your assets as small as they may be.
Realdeal, are all your backup players DBA's as well?

[MistaMarko]

I'm in a band, and we're to that point where we're starting to profit in the hundreds. Our last show, our merch table earned $350 dollars. Outside of the show, we've sold merch out the wazoo. You know, is it time to earn a business license or a tax ID? I'm not too sure about the policies, but I scheduled an appt. with a CPA to work it all out. I opened a band bank acct, but couldn't open as a DBA because my lack of a tax ID. Anyone know what I should do? Just advice.

[realdeal]

Realdeal, are all your backup players DBA's as well?

No- they are paid by me and the income is reported on a 1099- They need to either pay income tax on their earnings (which are pretty good btw!) or find a method to make it go away, doing itemized deuctions of their expenses as relatedto their music. As do I.

BTW, I see little risk of operating this way- It's all very out front. I'm paid BY a Corporation too, fwiw....

The reason in this case for operating as a DBA rather than a corporation: This is not a "Band"- it's more of an "act" if you get the picture. We do R&B covers, a few originals, and the feature is the Vocalist and her back-ups, entertaining the crowd, keeping them drinking, dancing, and HAPPY!
Not looking for a record deal, not looking to drop the next big video, not wanting to tour (been there,done that) just a working rhythm section. That's a good thing.
I ONLY work this Friday/Saturday date in this lounge-it's in a Casino, so there's a built-in crowd; once we did play in one of the holding company's other properties for a few weeks, but this is just how I like it now- a weekend warrior and I get to kick it at home during the week, and explore other projects if I want.

As far as business- It's a necessary evil once you get your head and "band" or act... out of the garage or rehearsal studio and into the real world. A few lucky knuckleheads get signed, then have a management team do all the paperwork,etc then they can "CREATE", play, snag groupies, trash hotel rooms, whatever...

But for the rest of us "poor working players" it behooves us to get our business chops up to speed as well as our playing chops. I chose to make my own opportunity to secure paying gigs rather than depend on someone else's business plan- This way I get to play the pocket music I dig, instead of ...something else!
Nathan East and Ray Brown btw, are and were two of the GREAT Bassist/Businessmen around-Check 'em out- Their business chops, I mean; hopefully you've heard them play.....