If one person runs the band, keeps all the money and pays salaries, the arrangement is a sole proprietorship . Each salaried band member is either an employee or an independent contractor. Salaried musicians who are paid to practice and perform are probably classified as employees. Musicians who are added just to play an occasional gig are probably classified as independent contractors. If your band is starting out or just trying to keep things simple, the partnership is the best business form for you.
Some bands are partnerships that employ side musicians.
For example, the three core members of a band may be a partnership and the hired drummer and bass player may be employees of the partnership. If your band is touring regularly and has serious concerns about taxes and liability you should consider forming a C corporation or limited liability company . Corporations and LLCs shield the band members from personal liability. A lawyer can guide you in establishing the business forms. Send us feedback .