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Originally Posted by ahimel  Agreeing with dgorila1 -- incorporate NOW. Right now you are in a general partnership. That's the default business structure if there's more than one person and nothing else is specified. It's also the riskiest business structure known to mankind.
If one of the other band members does something stupid -- or does nothing at all -- and gets sued, the lawsuit can come after your bank account, your instruments, and your house. That's the joy of an unlimited (general) partnership.
I'd probably start with an LLC. It'll take about 30 minutes at the Secretary of State's office -- in Colorado you can do it over the web, from the comfort of your home. Set it up, and set up a seperate bank account for the company (band). Money from gigs goes there, and is then paid out to the band members according to your agreements.
Save some of that money up, and use it to pay a lawyer. Get them to write up articles of incorporation that cover all that stuff dgorila1 mentioned -- who gets paid, when, what happens if someone leaves, or you hit it big, how much money stays with the company, who pays for new guitar strings ... all that stuff.
Then if the drummer explodes, you won't lose all of your money on top of losing a friend and having to find a new band memebr. |
Ok, I will look into that now. If I incorporate now, can I fill in the details as it goes, as in, who is part of it, the articles and the like?
I am seriously starting from 0, and want to get this rolling as smoothly as possible, as well as quickly.