As soon as the band gets paid for shows, sells merch or applies for grants, the money needs a home – not one member's personal account.
Give the band its own finances
The most common step is to make the band its own legal entity with its own bank account. Which form suits you depends on your country and how big things are:
- An association or non-profit – common for bands in many countries. In Sweden, for example, it takes at least three people, statutes and an organisation number from the Tax Agency (form SKV 8400) to open a bank account or apply for grants – and it's free.
- A partnership – when you run the music as a business together.
- A company (such as an LLC in the US or a limited company in the UK) – when income and risks grow.
Ask your country's tax authority or an adviser what fits you. What matters is keeping the money separate from the start.
A simple budget
- Income: fees, merch, streaming, grants.
- Costs: rehearsal space, recording, travel, marketing.
- Buffer: set aside part of every fee before anything is shared out.
Fees
Agree on the fee in writing before the show: the amount, currency, when it's paid and what's included (travel, food, sound). An email both sides confirm goes a long way – also when you play abroad.
Do it now: Decide who's responsible for the finances and make a budget for the next release.
General advice, not tax advice – rules differ between countries. Source for Sweden: Swedish Tax Agency, "Starting a non-profit association".