Band Bank Account

[glad_star]

Anyone have advice for starting a band bank account?
It's already decided that I will be the "Treasurer" and no one else will be able to go into the account without another person there to witness. We have our rules for putting into and taking out money and what the purpose of the account is. But does anyone know of the kind of account we should get. The best for getting the money to work for us. The best for tax purposes. Should we get a Savings, Checking or some other kind of account?
Any advice would be appreciated. I'm sure a lot of you have had some great, if not always good, experiences.
Geoff

[BlueStrat]

Originally posted by glad_star
Anyone have advice for starting a band bank account?
It's already decided that I will be the "Treasurer" and no one else will be able to go into the account without another person there to witness. We have our rules for putting into and taking out money and what the purpose of the account is. But does anyone know of the kind of account we should get. The best for getting the money to work for us. The best for tax purposes. Should we get a Savings, Checking or some other kind of account?
Any advice would be appreciated. I'm sure a lot of you have had some great, if not always good, experiences.
Geoff


Set up a checking account under a DBA (doing business as) using the band name. Make sure you have one other person in the band you can trust that has check signing power and account information access. This is as much for your protection as anything, plus it's easier to pay bills, etc if you're out of town or you need to make an emergency purchase and you don't have your checkbook or bank card.

[Kingnome]

People can get funny around money, so....
Always keep "the books" with you at every rehearsal, gig, whatever. You never know when somebody is going to get a wild hair about where the money is going. If you can show them in black and white, on the spot, it can quickly resolve the issue without things getting out of control.

Here's another cool tip.....
Get one of those aluminum briefcases with the handcuff attached.
Have a large friend escort you to the bank in dark sunglasses. It's so much fun to see the looks on peoples faces. ;)

[Scheming Demon]

Our band just did this. You want a business checking account in the band's name. If you set it up under your personal name then you are responsible for filing and paying taxes on the money.

You will have to file paperwork with the county clerk's office for your county where your band is located. It has to be notarized. The bank requires this paperwork.

You can then open a "business" checking account. Many banks have a $2000 or $1000 minimum balance requirement for business accounts. We waited until banks advertised $100 minimum balance which is more like it.

In our band's case, anyone can deposit but there must be 3 signatures to withdraw.

[Kingnome]

Originally posted by Scheming Demon

In our band's case, anyone can deposit but there must be 3 signatures to withdraw.

Wow-- It's hard enough to get three guys to the gig, let alone during banking hours !!

[Scheming Demon]

Originally posted by Kingnome


Wow-- It's hard enough to get three guys to the gig, let alone during banking hours !!

Yeah, pretty funny. In our band there are 3 of us which pretty much handle most of the work anyway. 1 is completely disinterested (which blows our minds) and the other has such messed up hours at his day job it's hard for him. So far we've managed alright.

(fingers crossed, knocking on wood)

[agt5]

We keep all of our money burried in a jar in the drummers yard. It seems to be working.

[firmgripDOTcoDOTuk]

we stash all our cash in a jar in Henks kitchen! most the things the band does comes from here! but we only have £30 now! thats the equivilant of $50 i think lol! so as u can see we dont have much money!

[drummerjoe]

we just have a band "wallet"... its one of those zipper pouches from the bank. We keep it in the practice space shoved in my kick drum of my practice kit.

[firmgripDOTcoDOTuk]

Originally posted by drummerjoe
we just have a band "wallet"... its one of those zipper pouches from the bank. We keep it in the practice space shoved in my kick drum of my practice kit. hehe now we know where it is hahahaha!

[drummerjoe]

Well if you come to OKC and find our practice space, get past the blind and deaf mutt shop dog that bites any and everything it stumbles into.... then climb over the drywall and car parts to get in the hole that is our practice space... then you are more than welcome to the 55$ dollars thats in the band wallet. ;)

[Kingnome]

Sell the dog, then you'd have maybe $75. ;)

[StratKat]

This may not be as good an idea as alot of you think. Having a formal account for a band that isnt into MAJOR money can cause alot of other headaches.

Here is one for instance that im personally aware of...

A band i was in had such an account. It took at least two members to make a withdrawl in person from the bank and two person of the group to sign a check. One of the guys who was one of the two signers quit the band and refused to goto the band to verify his removal from the account. It took three months to straighten it out at the bank and a threat of a lawsuit. Then this jerk decided he wasnt going to pay taxes on money he had signed for when making deposits into the account. The band account was audited for some reason (most likely because he didnt pay taxes on his musical earnings.) Because of all of this everyone in the band was audited. It broke the band up because of the cost involved and hassels.

Dont go getting yourslf into legal situations you have no knowledge about until you are big enough and profitable enough for a record deal. It may sound impressive to your peers to talk about band accounts, band funds, being incorporated, hiring managers, and other crap. But until you need it for real its a waiste of time and money and opens the doors to pther problems.

When you do get big enough for all these things then definitely get them. But do so after you have talked to a lawyer and understand all the negative things associated.

Ive seen bands busted because of band funds, equipment ownership, musical rights infringed on and most were nowhere near the point of needeing any of them. The onlything a young or amatuer band needs is copywriting material. The other legal stuff and monetary stuff can wait for when the band is making over 50,000 a year as an entity.

[Kingnome]

Originally posted by StratKat
It took at least two members to make a withdrawl in person from the bank and two person of the group to sign a check. One of the guys who was one of the two signers quit the band and refused to goto the band to verify his removal from the account.

Good point. I personally feel that only one person should handle the money. It the "One car, one driver" thing.

[justcrash]

When my most successeful band had a band bank account, I Was in charge of it. I gave them all the account info, and made copies of every deposit amnd withdrawl, enough for each of them.

[blindfolded]

cool

[Terry Allan Hall]

Hmmmm...never had a band account, per se...See, my rhythm section are employees, and get paid by the week, out of MY account...

Makes things a LOT simpler...I own the PA & related gear outright, and the bass amp that my bassist uses, and sometimes the percussionist uses my rig...as a business owner, it behooves me to own the means of production!

Also makes hiring and firing MUCH simpler!

Do I pay my rhythm section the same as I pay myself? Of course not, but I pay 'em better than they ever made in a "democratic" band...LOL

;)

[Zeromus-X]

Woah, wait a minute. You can make money doing this shit?

Ok, seriously... we keep it all in the possession of the lead guitarist. Not enough to justify an account, and we all agree on where it goes.

[kannibul]

Originally posted by drummerjoe
Well if you come to OKC and find our practice space, get past the blind and deaf mutt shop dog that bites any and everything it stumbles into.... then climb over the drywall and car parts to get in the hole that is our practice space... then you are more than welcome to the 55$ dollars thats in the band wallet. ;)

Hey, I'm not far, - Tulsa...
HAHA!!!