Join Richard Stim for an in-depth discussion in this video Limiting the band's liability, part of Music Law: Managing a Band's Business.
- When you operate your band business…as a partnership, a creditor can collect…a partnership debt against any band partner.…The same is true for any lawsuit judgement…against the band.…Keep in mind, we're talking about…band debts and obligations.…Not non-band personal debts.…Here are a few things band members…can do to minimize your band's risk.…Form an LLC or corporation.…Unlike partnerships, limited liability companies, LLCs…and corporations, shield individual band members…from business debts and lawsuits.…
Forming one of these liability limiting businesses…usually requires the assistance of a lawyer…or a business formation service.…You can find one online.…Expect to pay several hundred dollars…to form one of these entities.…Maybe more, depending on your state law.…There are also fees and legal work involved…in dismantling these entities should the band break up.…Maintaining a LLC or corporation may also be expensive.…For example, in California there is…an annual LLC fee of $800.…
Owners of LLCs and corporations…
It starts with what it means to be the manager of a band, and what types of business structures are available for bands. Once you've decided on a business structure, you can create a band partnership agreement that covers voting rights, postbreakup scenarios, new members, and terms for resolving disputes. Richard also exposes potential sources of disputes, like ownership of the band name, songs, equipment, and recordings. He includes advice on negotiating solid band contracts and managing financial basics: taxes, income, cash flow, and bookkeeping. Finally, he'll address how to protect your work, including your copyrights, band name, and songs, and explains how to find a lawyer—and save money on attorney fees.
DISCLAIMER: This course is taught by an attorney (or other instructor) and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Putting together a band partnership agreement
- Working out ownership disputes
- Limiting band liability
- Protecting your copyrights and band name
- Hiring a lawyer