How And Why to make a Band an LLC
We’re reaching back to 2017 for this week’s Flashback Friday post to share some basic but critical info on why you may want to make a band a limited liability corporation (LLC) and how to do it.
by Peter Vaughan Shaving from the nonprofit CASH Music
WHAT IS A LIMITED LIABILITY COMPANY?
A Limited Liability Company (“LLC”) is the most simple kind of business entity. Your band may want to consider registering as a formal business entity (or “incorporating”) in the state where you live to use certain tax advantages and to avoid personal liabilities, should your band ever be sued.
WHY SET UP AN LLC?
1) Protection
One of the primary benefits of forming an LLC is that band members’ personal assets (home, car, etc.) would not be placed at risk in the event that your band finds itself in some legal trouble. In most cases, if an LLC gets sued and loses, the financial responsibility does not lie on your life outside of the band. Having corporate protection prevents you having to take individual responsibility—which could potentially affect other people in your life who are not your bandmates.
