Excellent question! If you are serious about making a living as a musician, your band IS your business, so why not make it official? There are many benefits to registering your band as a business:
As a registered business, you are eligible for business accounts and business funding.
Although it depends on the tax laws where you live, it is almost always better for the self employed to have their income being earned by their business, even if it is a business of one.
Business laws will force band members to determine their roles in the group, how profits will be split, the responsibilities of each member and what happens if someone wants to leave the group.
Business laws offer a level of protection from financial liability should something go wrong, depending on the kind of business you set up.
Thinking of yourself as a business may just make you take your career a little more seriously.
The downside of registering your band as a business is that if things don't work out, your business will need to dissolved. If you've just started playing together, there's no need to fill out the business license form at practice two. When you're ready to get serious and try to make this your work, that is the time to start thinking about setting up as a business.
The specific process of setting up your band as a business depends on where you live and the laws of your country. Check with the business association or local council in your town for more info on the process.
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