Registering with ASCAP for a band...

[Myriad_Rocker]

My band is currently recording our debut album. We're going to be registering with ASCAP and all that good stuff. But my question is, should just one of us register or should we establish a company and register as a publisher? If we do that, we have to have a taxpayer ID number...

So...which route should we go?

 

[Myriad_Rocker]

For those that care and will bring this thread up in a search, I'll answer my own question.

I did a bit of research and also asked my cousin, who is in the music business and used to work for BMI, what we should do.

Here's what we're doing.

We're establishing a publishing company with ASCAP because it's cheaper than going with BMI as a publisher. Only one person in the group is establishing the publishing company. It's easier this way because you don't have to get a taxpayer id number. Then, a couple of us are going to register at BMI as writers and the others are registering through ASCAP as writers.

There you go.

 

[TerraMortim]

Isn't BMI free to sign up with?

 

[Rusty K]

I'm not sure this relates directly to what is needed for forming a publishing company, but if you have been paid for playing any gigs your band/corporation/partnership etc. or band leader/sole proprietor should already have a tax ID number for the IRS.

Rusty K

 

[Myriad_Rocker]

Isn't BMI free to sign up with?

For a writer/composer, yes it is. Not for a publishing company, though. All the guys in the band signed up as writers on BMI and we're going with ASCAP for the publishing company because there's only a "processing fee".

I'm not sure this relates directly to what is needed for forming a publishing company, but if you have been paid for playing any gigs your band/corporation/partnership etc. or band leader/sole proprietor should already have a tax ID number for the IRS.

Unless you divide up assets as individuals and just file those as income on your individual taxes. That's what I did when I was gigging consistently and wanted to write off my music equipment.

 

[Rusty K]

Unless you divide up assets as individuals and just file those as income on your individual taxes. That's what I did when I was gigging consistently and wanted to write off my music equipment.

Sounds good to me but I'm thinking you've just been lucky. Who get's all the 1099's from clients? The IRS might want to know. Who are the checkes made out to and whose bank account do you run the checks through? Filing a DBA (band/business name here) gives you a tax id number. $16 fee in my state for a DBA. There are also liability issues....in a partnership everyone can be sued. I'm not shure how the courts would deal with your band in that situation.

It sounds like your band it trying to be serious. I'd seriously suggest that you consult a lawyer...preferably a music lawyer.

Rusty K

 

[Myriad_Rocker]

Sounds good to me but I'm thinking you've just been lucky. Who get's all the 1099's from clients? The IRS might want to know. Who are the checkes made out to and whose bank account do you run the checks through? Filing a DBA (band/business name here) gives you a tax id number. $16 fee in my state for a DBA. There are also liability issues....in a partnership everyone can be sued. I'm not shure how the courts would deal with your band in that situation.

It sounds like your band it trying to be serious. I'd seriously suggest that you consult a lawyer...preferably a music lawyer.

Rusty K

The band has since split, and not that I need to explain my taxes to you, but there was a specified area that I was told to fill it out on. I did so. I was also directed to a spot where I could deduct music gear. I did that, as well. We were always paid in cash, split five equal ways. Just as if I were to go fix someone's computer or something and I had to the tools to do it with. We're not talking big bucks here, anyway.

We will quite possibly acquire the services of a music lawyer in the future. Our short term goals do not require us to do that just yet.

This topic is outside the scope of this conversation, anyway. It's too detailed and too rich of a topic.

 

[Rusty K]

should we establish a company and register as a publisher?

Sorry I thought this was a question. But the "all cash" statement tells me a lot. I wouldn't worry with any of this at this time. Wait and see how the album does.

Rusty K

 

[Myriad_Rocker]

Sorry I thought this was a question. But the "all cash" statement tells me a lot. I wouldn't worry with any of this at this time. Wait and see how the album does.

The "all cash" thing is a band now defunct, anyway. The new band is recording an album. We're going to register because that's what we want to do. Plain and simple. Last time I checked, I didn't ask about taxes. I asked about registering with ASCAP and/or BMI. And even though it could lead to a tax id number, this will not apply because you can still register as a publishing company with an SSN.