Band Ownership Issues

[::::BASSIST::::]

Yikes. You guys are WAY more organized than any group I've been associated with. Usually the leader collects the cash and hands it out to the members.

Done.

Only ONE time in a band I was in a long time ago did a venue issue a T4 slip (Canada) and we had to pay a boatload of taxes because the leader made over a $100,000 that year. I basically prefer to avoid that venue now.

In the US do most bands do things legitly in terms of taxes?

 

[Febs]

In the US do most bands do things legitly in terms of taxes?

I doubt it. But we do!

 

[fingerbun]

Great thread Jive.

I think the first question you have to ask is "Is this project a business or is it art / fun?" I would make many decisions differently if my goals were profit rather than creativity.

For me it's art / fun, so my first goal is always to set up a structure that removes financial impediments to the project. So, rather than thinking "The keyboard player owns a PA and is willing to provide it cheap, beauty, more profit for me!!!" I'm going to be thinking "Make sure he is compensated enough that he can't reasonably resent the extra work he does and have that spill over into the creative arena."

I like clear understanding of financial ownership (how gig money is split, who owns common assets and covers common expenses). But common sense is needed. Most times the money comes in and is immediately disbursed. I tend to avoid band ownership of significant assets.

Beyond that I don't really care. My experience is that band dynamics assert themselves regardless of what the individuals say, and the best thing to do is to nurse that process through to a positive outcome.

And I'm not chasing record / publishing deals, so I don't care about all that stuff, beyond making it clear to people I work with who are chasing that stuff that I am a hired gun.

 

[ChrisB2]

This probably matters less for tax purposes than for liability purposes, since the profits of partnerships are passed through to the individual partners anyway.

Good point.

Man, Febs, you guys run a tight ship!