Why Incorporate Your Band?


should i incorporate my bandYou've been in a band for five years. Your band has been gigging regularly, both locally and statewide. That is fantastic! New musicians are discovered every day, and there is always a need for exciting new music.

Why incorporate your band?

First we should clarify why musicians—typically the last people to consider themselves business people—should actually be very keen to incorporate their bands. It's the smart thing to do, on many levels.

The reason a band should incorporate is because most musicians’ dreams are to become the next Rolling Stones, Mumford & Sons or Maroon 5. However, in order to do that, you have to attract the notice of an A&R representative and then get signed to a record label.

Say your dream comes true and a record label likes your band and wants to help you create music for the masses—amazing! However, that record label wants to sign your band, not a group of individuals. The label is not investing in you solely, it is investing in your band, and the label wants to see that your band is in an LLC or corporation. Incorporating your band accomplishes several things for you. It:

  • clearly establishes your band is an entity on its own, so you cannot be held personally responsible for your band’s debts
  • permits you to own your original music through an entity. This protects the record label against breakups and/or disputes over who owns the music, now and in the future.
  • makes owning band equipment easier on all members. Each band member owns his/her own instruments but the band can also own communal gear, such as sound equipment, mixing boards, stage props, etc.
  • facilitates the hiring of assistants/roadies to transport, set up and break down the band's stage equipment.

For more in-depth information, visit our asset protection for musicians page.

The second question musicians should consider is: "What type of company should a band form?"

Typically, a band chooses to form an LLC. The LLC is by far the most popular type of company formation, as it has fewer corporate formalities and allows you to operate your business as you see fit.

The LLC is governed by a contract, called an Operating Agreement, which all members agree upon; by utilizing your LLC's Operating Agreement, you can shape the company structure to fit your specific situation.

The final question your band should be pondering is: "How do we incorporate?" Incorporating a band is as easy as calling us at 800-345-2677. If you have any questions about incorporating your band or questions about forming a Delaware LLC, you can also email or live chat with us.


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