Checks written to the band's name?

Webslinger · 07-22-2009, 11:12 AM

I need some advice on this.
I have a new band project that is not ready to be run as if it were a business.
But we have an upcomming gig, where Im sure the venue will want to pay us in a check, written to the bands name. This means I'll have to go through the hassle of opening a commercial bank account in order to deposit then withdraw & pay my people. (I made this mistake once a long time ago....I did some side work and was paid in a check to "(my name) company" and couldnt cash it)
Im going to ask that they make the check out to ME and I'll just pay the others outright, but if they insist on writing a check in the band's name, what's the best way to handle this.

American Viking · 07-22-2009, 11:21 AM

hmmm... You really need to contact the venue about this ahead of time. If this gig is going to pay in check and not cash, they know what a rider is and you should make a simple one that stimulates payment.
There are some examples of riders here
http://www.thesmokinggun.com/backstagetour/index.html
We played with Clutch a week or two ago and their rider was ridiculous, but all you really need is to word it with something that describes conditions of payment. Regardless you should just call them up and ask them, I'm sure they won't give you a hard time. They should know that most bands can't cash checks written out to the band, tell them to make it out to 'management', YOU!
Good luck

MartyStrat54 · 07-22-2009, 03:34 PM

I understand that this is a new project. However, when I was playing a lot, I was in one band for nine years and we had a bank account. It kept the complaining down about utility bills, water (you flush the toilet a lot when you are drinking beer) and everyone's cut from a gig. Most of the bar's paid by check to the band's name and that was okay.

It sounds like the place you are playing at is keeping a very close eye on the accounting. These places may report to the IRS and you would need to list any band income as "OTHER" income. Not trying to scare you, but I have had to list several thousand dollars as reportable income. Besides what Viking said to do, I would find out if they report the band's earnings as income to the IRS. The days of paying the band cash out of the bar register is pretty much over, except for small rural areas.

Marty

American Viking · 07-22-2009, 03:52 PM

Another little factoid, this is off topic but pertains to the tax thing... A guy here in Richmond got some of his gear ripped off from his rehearsal space a year or two ago. He called his insurance about it and it was actually covered in his homeowners policy even though the stuff wasn't at home. (some policies extend this to traveling on the road when you itemize your gear) The insurance lady asked him if he was a professional musician or a hobbyist and he obviously wanted to say "Oh yeah I've got a ton of records out" but instead he backed off and told her that he doesn't make any money playing music. She said she had to ask because if he made money at music than the stolen gear would have been a business loss not covered in a homeowner policy. Thus being said claiming band income to the IRS classifies your band as a business and you have to get separate insurance for all your gear.
I don't know if anyone could use that I'd just throw it out there to see if it may help anyone in the future.
I wish I made enough dough doing this, every time I come back from the road I'm a little poorer and a little more worn!

Webslinger · 07-22-2009, 04:39 PM

I did think about the tax issue too, but figured I'd bring that up later.
Our other gigs actually still do pay cash out of the register. So my main issue at the moment is converting a check made out to the bands name into cash the easiest way possible. I dont even think I could deposit it in my personal account either. I suppose I must open a business-checking account? Thats a hassle though because this is probably a one-time thing.
Viking, good point about the insurance issue... thats something I hadnt considered. But I'll also bring that up in a separate thread later.

MartyStrat54 · 07-22-2009, 05:57 PM

Viking, you're right on about the insurance thing. When my 1969 Gold Top got ripped off from a bar in northern Arizona, my insurance company looked at it just as you said, I was using it for business. If it had been stolen from my home I would have gotten paid $3500, but instead, I got only 10 per cent of that amount. It really sucked. 350 bucks for a 69 Gold Top. (This was what it was worth in 1991.)

Make sure that the club can make the check payable to you. As Viking said, they work with bands and they should be able to accommodate you. Open an account only if you need to. I know it's a hassle, but it's all part of playing in a band.

Marty

American Viking · 07-22-2009, 06:55 PM

Quote:

Originally Posted by MartyStrat54

350 bucks for a 69 Gold Top.

ugh, kinda makes me want to puke...

Scrap_Iron · 07-24-2009, 01:38 AM

Sometimes the venue will cash it for you; they want the check method for their records and have piles of cash from the night's receipts. Of course, asking ahead of time is helpful.

If they write it direct to you, get receipts from anyone you pay out. It can take up to 2 years for bank and tax agency records to reconcile, so you would need to prove you didn't really make all that money if audited 2 or 3 years later.

07-22-2009, 11:12 AM	#1 (permalink)
Webslinger Senior Member Join Date: Aug 2008 Location: Sopranoland, NJ Posts: 396	Checks written to the band's name? I need some advice on this. I have a new band project that is not ready to be run as if it were a business. But we have an upcomming gig, where Im sure the venue will want to pay us in a check, written to the bands name. This means I'll have to go through the hassle of opening a commercial bank account in order to deposit then withdraw & pay my people. (I made this mistake once a long time ago....I did some side work and was paid in a check to "(my name) company" and couldnt cash it) Im going to ask that they make the check out to ME and I'll just pay the others outright, but if they insist on writing a check in the band's name, what's the best way to handle this.

07-22-2009, 11:21 AM	#2 (permalink)
American Viking Senior Member Join Date: Jan 2009 Location: RICHMOND, VIRGINIA Posts: 2,023	Re: Checks written to the band's name? hmmm... You really need to contact the venue about this ahead of time. If this gig is going to pay in check and not cash, they know what a rider is and you should make a simple one that stimulates payment. There are some examples of riders here http://www.thesmokinggun.com/backstagetour/index.html We played with Clutch a week or two ago and their rider was ridiculous, but all you really need is to word it with something that describes conditions of payment. Regardless you should just call them up and ask them, I'm sure they won't give you a hard time. They should know that most bands can't cash checks written out to the band, tell them to make it out to 'management', YOU! Good luck __________________ Transformers inside amplifiers were not originally designed to be in there, and the tube was not created for the guitar amp. ANY recommended idle current is a guideline and in no way a necessary requirement. There is no skeleton key for any tube amp.

07-22-2009, 03:52 PM	#4 (permalink)
American Viking Senior Member Join Date: Jan 2009 Location: RICHMOND, VIRGINIA Posts: 2,023	Re: Checks written to the band's name? Another little factoid, this is off topic but pertains to the tax thing... A guy here in Richmond got some of his gear ripped off from his rehearsal space a year or two ago. He called his insurance about it and it was actually covered in his homeowners policy even though the stuff wasn't at home. (some policies extend this to traveling on the road when you itemize your gear) The insurance lady asked him if he was a professional musician or a hobbyist and he obviously wanted to say "Oh yeah I've got a ton of records out" but instead he backed off and told her that he doesn't make any money playing music. She said she had to ask because if he made money at music than the stolen gear would have been a business loss not covered in a homeowner policy. Thus being said claiming band income to the IRS classifies your band as a business and you have to get separate insurance for all your gear. I don't know if anyone could use that I'd just throw it out there to see if it may help anyone in the future. I wish I made enough dough doing this, every time I come back from the road I'm a little poorer and a little more worn! __________________ Transformers inside amplifiers were not originally designed to be in there, and the tube was not created for the guitar amp. ANY recommended idle current is a guideline and in no way a necessary requirement. There is no skeleton key for any tube amp.

07-22-2009, 04:39 PM	#5 (permalink)
Webslinger Senior Member Join Date: Aug 2008 Location: Sopranoland, NJ Posts: 396	Re: Checks written to the band's name? I did think about the tax issue too, but figured I'd bring that up later. Our other gigs actually still do pay cash out of the register. So my main issue at the moment is converting a check made out to the bands name into cash the easiest way possible. I dont even think I could deposit it in my personal account either. I suppose I must open a business-checking account? Thats a hassle though because this is probably a one-time thing. Viking, good point about the insurance issue... thats something I hadnt considered. But I'll also bring that up in a separate thread later.

07-24-2009, 01:38 AM	#8 (permalink)
Scrap_Iron Senior Member Join Date: Jan 2009 Location: Austin, Texas Posts: 133	Re: Checks written to the band's name? Sometimes the venue will cash it for you; they want the check method for their records and have piles of cash from the night's receipts. Of course, asking ahead of time is helpful. If they write it direct to you, get receipts from anyone you pay out. It can take up to 2 years for bank and tax agency records to reconcile, so you would need to prove you didn't really make all that money if audited 2 or 3 years later.

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