Should you or your band form an LLC (limited liability corporation)? Good question.
First off, disclaimer, I am not an attorney and this information is for entertainment purposes only. Use it as you will but I’m not advising anything. For legal counsel find a good music attorney.
So, knowing I’m not a lawyer, I wanted to share some information that may help you determine if you need to form an LLC or not.
First off, if you’re just getting started then it’s probably not necessary.
You can spare the expense and use your money for more important things.
What is an LLC (Limited Liability Company)?
LLC is an abbreviation for limited liability company.
It’s a business structure that provides a business with limited liability (similar to a corporation), but the structure is easier to establish and simpler to maintain.
It also provides the business with pass-through treatment of income for tax purposes, similar to that of a sole proprietorship or a partnership.
Is it a Mistake to Setup an LLC too Early?
A lot of people spend too much time “setting things up” and never actually get to work and make money.
If you’re serious about forming an LLC then you need to be 100% dedicated to making money with your music.
That means spending every waking hour practicing, finding gigs, writing music and promoting your music.
Once you start making money that’s when you may consider forming an LLC.
Benefits of Setting Up an LLC for Your Band
If your band is working hard and making money you may benefit by forming a Limited Liability Company.
Here are some benefits to forming an LLC for your band.
- Protects your “personal” assets – limits the liability to the LLC.
- Saves on taxes – Income passes through to you individually – saves you on corporate taxes.
- Easier to set up accounts – bank, credit cards, etc
- Clarifies member ownership – No question about ownership of band – name of band, etc.
This is just the tip of the iceberg when it comes to considering setting up an LLC for you or your band.
Before you jump into it be sure you read, read, read and contact a reputable music attorney and accountant.
How GigFaster Can Help
You work hard at your craft. You write, you practice, you record and you push it to the limit.
Getting recognition for your music is hard but GigFaster can help.
We have a built-in network of over 6,000 venues, music promoters, and record labels. We can help you distribute your press kit and book gigs in cities all around the country.
We also have low monthly pricing, and even offer a free trial to help you get started.
Remember, if you want to succeed, never quit!
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