Writing A Partnership Agreement: The Basics

Who Needs It?
When you and a few friends get together to make music, you may not know it, but you have begun a partnership in the eyes of the law. Depending on circumstances, this could be a bad thing if you don't do the next step of writing out some kind of partnership agreement. Music business attorney, Michael J. McCready, explains it on his site (www.music-law.com):
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In fact, the band is a partnership without even doing anything at all. The general law of partnerships presumes when a group of people act together, they are a partnership. Without a written agreement to the contrary, the law will assume various things about your band. First, everyone will be liable for everyone else. This means that if one of your bandmates signs a contract obligating the band to rent rehearsal space for $10,000, each band member is responsible even though they had no part in the transaction. The law presumes that each partner will be bound by the actions of all the other partners. Also, if you break up, the law will presume that all the band members own the band name and any of them can use it in the future, since no one has exclusive possession. This means that if the band breaks up, all four members could start their own version of The Band and use the name. That certainly would lead to confusion!
Michael M McCready from the article, What Form Of Business Should My Band Be?

Who needs it, most likely you do.

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