– the basic band partnership agreement included with this course addresses common band issues. if your band wants a more sophisticated agreement, for example, one that incorporates song writing ownership, you can add those requirements into the basic agreement or create a more detailed agreement with an attorney’s assistance. you’ll also need to create a name for your band partnership. most bands usually use the band name and add the word partnership at the end. if your band is unsure about who owns the name, i discuss those issues in the next video. next, the profits and losses clause establishes that band members who will share all profits equally. some bands agree ahead of time about the voting requirements for important issues. if a majority vote is required for some issues and it results in a tie, the band can agree ahead of time to designate one person as the tiebreaker.
if your band requires a unanimous vote for expelling a band member, the party to be expelled would not be entitled to a vote. it also states that a band member may voluntarily quit the band and that a leaving member is entitled to a share of the net worth of the partnership, as well as the share of royalties. signing the agreement doesn’t create a band partnership. now for example, if a disgruntled ex-member attempts to use the band name and doesn’t have a right to do so, the other band members can use the agreement to enforce their rights. in addition, a disgruntled ex-partner can’t drag you into court because you have now all agreed to use mediation and arbitration. if new band members will become partners in your band partnership, they should also sign the partnership agreement. keep in mind, you don’t have to make every musician who plays in your band a partner. one thing you should be aware of however is that a partnership also creates the potential for personal liability.
organizing and putting down in writing the rights of each band member is far easier and less expensive then waiting for a dispute and “lawyering up” for an expensive lawsuit. typically the first decision the band needs to make is whether to formally create a company registered with a state or whether a simple partnership agreement among the band members is sufficient. second, and most importantly, a limited liability company or a corporation provides individual liability protection for each band member. by contrast, if your band has merely formed a partnership, each band member is individually liable for all of the debts and liabilities incurred by the band. while all three entities will work equally well for limited liability protection, in the context of a band with multiple owners the best entity type is a limited liability company.
this means that if your accountant decides that a c-corp is best “tax entity” for your band, he or she can file a one page form with the irs and elect c-corp tax status for your band’s limited liability company. for example, maybe one of the band members designs most of the t-shirt and should be entitled to a higher percentage of t-shirt sales. with a limited liability company the band members are free to agree to whatever rights and rules they come up with. third, in nevada (and many other states), judgments against the owners of a limited liability company are limited to “charging orders.” with a charging order the creditor can only wait and hope that the band makes a distribution to its band members. for example, if one of the individual band members gets in trouble (e.g. there are numerous issues for the band members to consider when setting out the rules for the band and the rights of each band member.
starting a band is a lot of fun, but it is also a lot of work. make sure that you and your bandmates are protected by using this band partnership agreement signing the agreement doesn’t create a band partnership. it formalizes and establishes rules for the existing partnership arrangement. now for example, if a free band partnership agreement. create and print for free in about 5-10 minutes. complete a short questionnaire. print and download instantly., band partnership agreement template, band partnership agreement template, band contracts between members, band agreement checklist, how to file a partnership agreement.
what is a band partnership agreement? a band partnership agreement is a legal contract signed by band members that explains how the band operates and how the decisions regarding the band are to be made. a simple bpa can be written by a band member and signed and dated by all band members. alternatively, your band can use one of many “fill-in-the-blank” a band agreement is a contract between band members, much like a partnership agreement is to a partnership. it simply outlines how the band business will be what this means is that if your band breaches a contract or incurs some other liability, only the company will be liable. by contrast, if your band has merely, band llc operating agreement template, contract of partnership, general partnership form, partnership withdrawal agreement, partner agreements for business, legalzoom partnership agreement, legal zoom partnership, legalzoom limited partnership agreement, dba partnership agreement, services partnership agreement.
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