The document outlines plans for setting up a band management agency as a sole proprietorship. It discusses developing a business plan, registering the business, and the services offered such as marketing, promotion, and handling legal/financial matters for artists. It also covers the pros and cons of a sole proprietorship, necessary licenses and insurances, important contracts like artist and management agreements, and makes a request for $100k investment to expand services and roster.

1. Legal Issues in Setting Up a
Business Assignment
Hannah (Nova) Granite
Week 4 Assignment 2
Business Law /w Elizabeth Young

2. Band Management Agency
Setting up the business:
First thing i’d do is set up a proper and realistic business plan. This will be the foundation of of
the businesses structure, run, and growth. Next, I’d set up a plan to figure out how much
money is needed to start the business. Then, once settled on a location make sure I register
the business, get tax ID, create a business bank account, and get required licenses and
permits.
Services your business would offer:
Our Company offers artists a place to be signed with a manager, who will take care of all their
business needs as well assist them in day to day life. Our professional managers specialize in
marketing, management, promotion, ticket sales, social media, royalties, copyright laws, and
other legal as well as financial matters, as well as handle sales of merchandise.

3. Business Entity:
The business entity I’m
choosing for my business is
sole proprietorship.

4. Sole Proprietorship
Pros
● Easy Setup and Low Cost
● No Corporate Business Taxes
● No Annual Reports/Filings
● Not Restricted by Formal Business
Structure
● Easy Recordkeeping
● Total control over all decisions
● Get all the profits, and pay everyone
else’s salary.
Cons
● No Ongoing Business Life
● Difficult to Raise Money
● Inability to Take on Business Debt
● Can be Seen as Unprofessional
● Personally liable for all debts and legal
obligations.

5. licenses

6. licenses needed to
start conducting
business
● Through research It seems to me
that there is no professional
license required for agents and
managers. However, a business
license may be required
depending on how the business
is organized, (Such as a corp.,
LLC, Sole Proprietorship,
Partnership, etc.)

7. Insurances

8. Insurances I will need
● Property: Covers the businesses property. (such as computers, audio visual
equipment, offices, etc…)
● General Liability: Covers for compensation payments from damages to third party
property or injury.
● Workers' Compensation: Covers injury and illness to employees and artists.
● Errors & Omissions: Defends against allegations, slander, infringement of copyright,
breach of confidentiality.
● Travel & Touring: Covers trip cancellation, medical expenses, passport replacement,
loss of baggage, etc...
● Specialist Cancellation Insurance: Cover against financial loss resulting from
cancellation, abandonment, postponement or re-scheduling of an event.

9. Important Contracts
ARTIST BUSINESS
MANAGER AGREEMENT
● An Artist Business Manager Agreement is used by
a business manager when contracting with an
artist.
CONTRACT PACKAGE
FOR ARTIST MANAGER
● To contract with artists and act as the artist's personal
manager. The manager can also contract with other
parties in order to help the artist in their career.
DEMO RECORDING
SHOPPING
AGREEMENT
● Used by the manager who will pitch an artist's demo
recordings and promotional package to record labels with
the intent of getting a record deal for the artist.
Entertainment Lawyer
● Protect clients intellectual property rights, represent
them in court over disputes, negotiate contracts, etc...
PARENTAL CONSENT AND
GURANTEE (USED WITH
MINORS)
● A document that is used when a minor (under the age of 18) is
being signed to a contract. The parent or guardian has to provide
both a consent and agreement to be liable for the performance of
the contract for the minor to enter into the contract.

10. Why We need your Investment
“Our Agency is more than your typical Entertainment management company, we
strive to put our clients first. Our company's core competency is building a connection
between our artists and their consumers. We help these artists to produce and sell their
music to customers with new music releases, tours, and merchandise good. With your
investment of 100K, we can budget to build up a bigger roster and expand our services
beyond just management.”

11. Citations
● Jamie, Plowman, L., Korri, Audrey, Ajose, T., Luke, E., . . . Pastierova, H. (2020, February 21). How To Start
An Artist Management Company. Retrieved August 31, 2020, from https://smartistu.com/how-to-start-an-
artist-management-company
● Dozier, L. (2019, February 11). How to Start Your Own Artist Management Business. Retrieved August 31,
2020, from https://bizfluent.com/how-7768644-start-own-artist-management-business.html
● Legal. (n.d.). Retrieved August 31, 2020, from https://napama.org/legal
● Music: Business Entities. (n.d.). Retrieved August 31, 2020, from https://vlaa.org/business-entities/
● Insurance for Artist Managers & Literary Agents. (2020, February 07). Retrieved August 31, 2020, from
https://laplayainsurance.com/arts-entertainment/insurance-for-artist-managers-literary-agents/
● (n.d.). Retrieved August 31, 2020, from https://www.musiccontracts.com/artist-management-contracts/
● Newlands, M. (2014, August 25). 7 Ways to Impress Your Potential Investors. Retrieved August 31, 2020,
from https://www.inc.com/murray-newlands/7-ways-to-impress-your-potential-investors.html