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by: Shelly Harris / Entertainment Attorney
QUESTION: We would like to incorporate our band. What do we need to do and approximately how much is it going to cost?
ANSWER: There are several things you need to consider before I can tell you what to do or how much the various filing fees will be. To begin with, I would suggest that you first check to make sure another band is not already using your band name or one too similar to it (a good place to start is to do a search at www.uspto.gov). If there is no problem with that, I would also advise you to file your band name (and also potentially your business name) as a service mark at that office. (The filing fee for that is currently $325, and all that can be paid and filed online.) The next thing to consider is whether you want to file your business with the Secretary of State as a Limited Liability Company (LLC), a Limited Liability Partnership (LLP), or an “S” Corporation or standard Corporation. Although all these entities will provide you greater protection from personal liability, there are specific tax consequences to all of the above which you should also discuss with a qualified tax preparer. You will also have to order a new and separate tax ID number (EIN) from the IRS for future tax filing purposes. How much it will cost to file as a business with the Secretary of State, and what specific documents need to filed, will depend on which state your business will have as its home base. For instance, Indiana charges a $95 filing fee, while Illinois fees can range around $400 -- $500. (Side note: you must have a regular mailing address for delivery of legal process; no mailboxes, etc., allowed.) You can easily do an internet search using the state name and “Secretary of State” and “small businesses” to find a direct link to all the preliminary info you need. I would also suggest a detailed band agreement to coincide with your business entity of choice to further elaborate on not only who can legally sign on behalf of the band business, but also how members legally leave or join, and how their “interest” in the business can be bought out, if necessary, etc., plus other issues such as who owns what percentage of the band name or communal equipment and assets should some of the members/business partners depart. Write to Shelly Harris at: shellyharrislaw@aol.com | |||
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