“IF YOU’RE GONNA DO IT, DO IT RIGHT”

Whenever I hear a musician say, “We’re all great friends and we’re gonna blow up big time.” I know they’ll be calling me for legal help and it will be way more expensive than if they had done things right from the beginning.

Do We Need a Band Agreement?

From pages long corporate partnership agreements to simple handshakes; Band Agreements can be as varied the artists themselves. In whatever form they take, a band agreement is a contractual manifestation of band members’ commitment to each other and to the band itself. Simply put, it’s a way for band mates to tell each other and the world, “We are professional.”  It is an all too common myth that a band has to become successful before they start thinking about the business side of music. Band agreements aren’t just for the successful; they are a tool OF the successful.  They are for the committed.

A good rule to keep in mind is that a formal agreement should be made anytime another person is given decision making power on your behalf. That can be other band members in their clearly defined roles, or outside members of the team like booking agents or managers. If there is a situation where someone else has the power to commit you to performing, endorsing, etc., a band can benefit from having some kind of more formal agreement in place. 

When your band is thinking of recording an album or making a video, it’s a good time to think about a band agreement and talk to an entertainment attorney.

When Should My Band be a Business?

It already is.  But it’s not the kind you want your band to be. When 2 or more people do business together and take no formal steps to organize, most states will treat them like a partnership. This can mean that ALL partners (including the keytar player) can be liable for the debts of the partnership. So if said Keytar player rocks out too hard during a solo and falls onto the sound board causing damage, every single member of the band may be personally liable for the costs.

Each state has a website to register and look up businesses. In Florida that site is www.SunBiz.org. Most bands register as either an S-Corp. (small business) or an LLC (a limited liability company).  There is a small cost to register and renew each year but it’s a whole lot cheaper than personal liability. And if you want people to take you serious, act serious and register your band.

When you have any money coming in and you put it in a bank account (either saving to record or for a kick starter campaign) then that’s the time a band should think about going legit in the eyes of the law. Rock ‘n roll may be about being rebellious but it’s hard to sing about being a bad ass when you’re broke and have to hawk your instruments to pay fines and taxes.

When Should a Band Hire an Attorney?

It’s never too early to make contact and talk to an entertainment attorney. You can get some great (often free) advice on what to do and how much it will cost. That way you will know in advance how much to save, what for, and what the consequences will be if you ignore that advice.

To start, expect to hire an attorney for specific jobs, such as drafting a band agreement, and performance contracts, registering your business, and registering copyrights.  When you start to play out frequently and get a good buzz around town (from fans and others in the industry not from the Jim Beam) it’s probably time to have an attorney on retainer.

A retainer to an attorney is monies paid in advance for legal work. It allows the attorney to begin work right away and proactively work on your behalf. It also allows the band to effectively budget their legal fees in advance.

If you have to sign ANYTHING – it never hurts to ask.

The music business can be one of the most rewarding careers to pursue.  If you want to make it last, take the time to do it right.

~ Quinton J. Sheer, Esq. practices in the Entertainment, Contract, and Criminal fields of law and is a certified county mediator. He is an A&R Scout for Majorlabelscout.com (powered by Atlantic Records). Quinton is a member of the Florida Bar, American Bar Association, Orange County Bar Association, Osceola County Bar Association, National Lawyers Guild, NORML, and the ACLU.

** This article is intended for general information only. The information presented in this article should not be construed to be formal legal advice or the formation of a lawyer/client relationship.  Your art is your life, It’s worth protecting. **