We don't answer individual legal questions or give lawyer referrals. Download after purchase. Every business has a legal structure, which we refer to as a business form. The business form that you choose is up to you and your band. If you don't actually choose a business form, you may be a partnership by default.
Most Bands Are Partnerships Generally, most bands are partnerships.
That's because most bands split profits among themselves rather than receive a salary from one or more owners of the band. By law, whenever people contribute towards a business and share in the profits, the business automatically classifies as a partnership. Contrast this with a sole proprietorship, in which one person runs the business, owns all profits, and pays everyone else a salary. It's possible for a band to operate this way, but not very common. If one person runs the band, keeps all the money and pays salaries, the arrangement is a sole proprietorship .