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Turning your band into a legal business gives you credibility, protects your assets, and makes it easier to handle taxes, gigs, and merch sales. The most common and band-friendly choice is forming a Limited Liability Company (LLC).
In this article, we will walk through the steps to setup an LLC and how to maintain it going forward.
Author’s Note: This article focuses on registration in Colorado. The specific laws (and links) may be different but the steps are the same.
Why Choose an LLC for Your Band?
When starting a business, you can choose from several structures depending on your goals, liability concerns, and tax preferences. The sole proprietorship is the simplest—just you running the business, with no legal separation between personal and business assets. Next, a partnership involves two or more people sharing ownership, profits, and responsibilities. An LLC (Limited Liability Company) offers personal asset protection while keeping taxation simple, making it a popular choice for bands and small businesses. For larger or more complex operations, a corporation (C-Corp or S-Corp) provides stronger liability protection and easier access to investment, but requires more formal paperwork, ongoing reporting, and tax management.
An LLC (Limited Liability Company) gives your band a legal identity separate from its members.
This means:
- Personal asset protection – If the band gets sued or owes money, your personal property (car, home, savings) is generally protected.
- Flexible ownership – Easy to split income between multiple bandmates.
- Simple taxes – Income passes through to members’ personal returns (no corporate double tax).
- Professional credibility – Venues, labels, and merch vendors may take you more seriously.
LLC vs. Sole Proprietorship: Key Differences
| Feature | LLC | Sole Proprietorship |
|---|---|---|
| Liability | Protects personal assets | No protection — personal and band assets treated the same |
| Ownership | Can have multiple members | One owner only |
| Taxes | Pass-through, flexible | All income taxed to owner personally |
| Setup | File with Secretary of State, pay fees | No filing required (just start doing business) |
| Professionalism | Looks more official on contracts, invoices, banks | Informal — just you doing business under your name or a DBA |
Bottom line: A sole proprietorship is fast and cheap, but risky. An LLC gives your band protection and professionalism for relatively little extra effort.
Step-by-Step Guide to Registering Your Band as an LLC
Step 0 — Pick a Name
Local state name search
- Your LLC name must be unique in the Colorado Secretary of State business database.
- Your LLC name is your business name. Therefore, it can be synonymous with your band name or it can be different. It is recommended to have “LLC” included at the end of the name in official documents and for business: My Band Name LLC. However, when using your name for shows, etc., you do not need to have LLC included.
- If you have a different business and band name than you will need to file a trade name (DBA). The benefit of this approach is that the band name can be flexible or you can have multiple bands under the single LLC. The negative of this approach is that you have to renew registration of the tradename (or multiple names) in addition to the LLC name.
Federal trademark search and registration
- A federal trademark protects your band name nationwide and prevents other musicians from using the same or confusingly similar name.
- Start by searching the USPTO Trademark Electronic Search System (TESS) to see if your desired name is available.
- File a trademark application through the USPTO Trademark Electronic Application System (TEAS).
- Fees typically start around $250–$350 per class of goods/services. For bands, common classes include musical performances, recordings, and merchandise.
- Once approved, a federal trademark gives you legal rights to your name across the United States and strengthens your brand.
- The trademark can take 12-18 months to be approved once registration is submitted. You don’t need to wait for final approval; however, you should know with a high degree of certainty that your name is available (a thorough search can be done via a service like LegalZoom).
A trademark is separate from the LLC name — even if your LLC is registered in Colorado, a federal trademark ensures national protection.
Step 1 — File Articles of Organization
Prepare to file Articles of Organization online. This document officially creates your LLC and includes:
- Your band’s legal name
- Principal business address
- Registered agent name and address (must be a Colorado street address)
- LLC management structure (member-managed vs. manager-managed)
- Names of members or managers (optional in some cases)
Where to get a template:
- The Colorado SOS online form is guided — no separate template is required.
- For planning or review, you can use:
- Colorado Secretary of State LLC Checklist
- Legal document services like Rocket Lawyer or LegalZoom (note: these may charge fees, but the SOS filing itself is free online).
Pay the filing fee (currently $50) and submit. After submission, you’ll receive a confirmation email and your Entity ID, which you’ll need for banking, taxes, and other filings.
Step 2 — Get a Federal EIN
Apply for an Employer Identification Number (EIN) through the IRS EIN Online Application. It’s free and gives your band a tax ID number. You’ll need this for banking and tax purposes.
Step 3 — Open Band Bank Account & Create an Operating Agreement
Use your Articles of Organization and EIN to open a business checking account.
Draft a simple Operating Agreement (not required, but strongly recommended):
- Who owns what % of the band LLC
- How profits/expenses are split
- Who can sign contracts
- What happens if someone leaves the band
Step 4 — Protect Your Creative Work
Now that your band is legally formed, protect the music itself and make sure it earns revenue by doing the following:
- Submit for Copyrights – Register your songs and recordings with the U.S. Copyright Office.
- Register for Royalties – Join a performing rights organization (ASCAP, BMI, or SESAC) for songwriting royalties, and register with SoundExchange for digital performance royalties.
- Publish & Distribute – Use digital distributors to get your music on Spotify, Apple Music, Amazon, and more. Popular options include (but not limited to):
Important Note: Distribution platforms (like DistroKid and CD Baby) will put your music on Spotify, Apple Music, and other services, but they do not copyright your music for you. You must still register your copyright separately through the U.S. Copyright Office to ensure full protection.
Step 5 — Register for State (and City) Tax License
Register through MyBizColorado to get your state tax accounts.
- Apply for a Colorado sales tax license via Revenue Online if you’ll sell merch.
- Watch for home-rule cities like Denver that require their own local sales tax licenses.
- You will receive a sales tax license that you can display at any point-of-sale (like a show).
- You will need to submit an annual, quarterly, or monthly sales tax report. The application process will help you choose but it is recommended to
Step 6 — Periodic Maintenance
- File sales tax returns monthly, quarterly, or annually depending upon what was determined when obtaining a sales tax license.
- File your Periodic Report each year with the Colorado Secretary of State (around your anniversary date).
- Renew trade name(s) each year if you have them.
- Federal tax filings for members:
- For a multi-member LLC, file IRS Form 1065 (U.S. Return of Partnership Income) to report LLC income, deductions, and profits/losses.
- Provide each member with a Schedule K-1 (Form 1065) showing their share of income, deductions, and credits for the year.
- Each member reports this income on their personal tax return (Form 1040) according to the K-1.
- For a single-member LLC, income is reported directly on Schedule C of the member’s Form 1040.
Optional Steps
If You Hire People
Running payroll (for a tour manager, crew, etc.) requires registering for unemployment insurance, workers’ comp, and Colorado’s paid family leave program.
- Unemployment Insurance (UI): Register through the Colorado Department of Labor and Employment (CDLE) at the MyUI Employer website. This account is required for paying unemployment insurance premiums.
- Workers’ Compensation Insurance: In Colorado, all employers with one or more employees must carry workers’ comp. You obtain this through a private insurance company licensed in Colorado, or you can apply to become self-insured through the Colorado Division of Workers’ Compensation.
- Paid Family and Medical Leave Insurance (FAMLI): Colorado’s new paid family leave program is administered by the FAMLI Division of CDLE. Employers register and manage contributions through the FAMLI Employer portal.
Find an Online Marketplace
In order to sell your products, in addition to streaming platforms, here are some sites that you can use:
Band-Focused Platforms
- Bandcamp – Popular with independent bands. Lets you sell digital music, CDs, vinyl, and merch like shirts, patches, or tapes directly to fans. Great for metal since fans often want physical media.
- Big Cartel – Built for artists and musicians; simple store setup with creative control. Often used by DIY metal and punk bands.
- Merchbar – Connects directly to Spotify artist pages, making it easier for fans to buy while streaming.
- IndieMerchstore – Big in the metal community; many established metal bands use it for official merch.
Direct-to-Fan & Print-on-Demand Services
- Teespring (Spring) – Easy setup, no upfront costs. You design and promote; they handle fulfillment.
- Redbubble – More art-focused, but fans can order your designs on shirts, stickers, posters, etc.
Still have questions?