are you an LLC or S-Corp?

[pounce]

for bands that are touring, studios, venues, equipment rental companies, etc. - it could be argued that there is a compelling need to have a proper business structure by way of LLC or S-Corp to protect yourself. even the name limited liability company is fairly self explanatory.

with people travelling, gear on the road with you, things breakable, people able to get hurt, a business person needs to establish a certain amount of structure for good business and for their own protection.

i suspect many folks doing this are sole proprietors. it's perhaps easiest to define yourself that way professionally. and the other forms might not have any tax benefits over a sole proprietorship. otoh, even for the smallish amount of studio sound work i do at my own space, if someone where to slip and fall or whatnot, i'd prefer to have any protection i could personally. an LLC is that kind of protection. there are probably a million very possible scenarios where a little bit of corporate structure might help.

i thought i'd ask any folks here, whether live sound companies or bands, what kind of business structure do you have set up?

[clicktrack]

We're Incorporated (essentially the same as LLC).

It costs more and there are rules you need to follow (regular accounting, submissions to the powers that be) but it provided us with some protections.

First off, in Canada, it provides you with Federal Name Recognition. Meaning that no one else can try to market their service (whether similar service or not) under the same name.

As well, from the banking perspective, some services would not have even been available to us if we were not incorporated. They, at least in some circles, seem to view sole proprietorships as larger risks. (I can't fully comment on why...these comments come from sidelong conversations on the topic with our account manager as thigns were getting set up). The same goes for some of your suppliers as well. Some suppliers may not want to extend credit to a sole proprietorship.

At the end of the day, it IS your name on the piece of paper. So, to some degree, you can't necessarily walk away from your responsibilities claiming the corporation is another entity. However, depending on your circumstances and plans for your business, it may be worth while to incorporate.