How to Start a Live Band

Live bands are paid to perform music professionally before audiences in bars, nightclubs, concerts, private parties, corporate events, and other public venues. Peripheral revenue can be generated through the sale of recordings and merchandise. In addition to the group’s musicians, ownership in the business can include its manager and anyone else with a financial stake.

Learn how to start your own Live Band and whether it is the right fit for you.

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Start a live band by following these 10 steps:

  1. Plan your Live Band
  2. Form your Live Band into a Legal Entity
  3. Register your Live Band for Taxes
  4. Open a Business Bank Account & Credit Card
  5. Set up Accounting for your Live Band
  6. Get the Necessary Permits & Licenses for your Live Band
  7. Get Live Band Insurance
  8. Define your Live Band Brand
  9. Create your Live Band Website
  10. Set up your Business Phone System

We have put together this simple guide to starting your live band. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Live Band Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability.

It's very important to secure your domain name before someone else does.

Want some help naming your live band?

Business Name Generator

What are the costs involved in opening a live band?

At a minimum level of involvement, your costs can be very low. It can be just you and your acoustic guitar. At a mid-level, you might have to spend a few thousand dollars for equipment if you don’t already have it. Also, depending on the number of performers and the amount of gear involved, you might have to rent or buy a van or other vehicle to transport. A used van can be bought for as little as $7,000 and rented as needed for $100 or so.

Managers and agents usually take a percentage of your billings, so their participation detracts from your performance fees but doesn’t add out-of-pocket costs.

What are the ongoing expenses for a live band?

Startup bands might have virtually no out-of-pocket expenses except gas if they already have their own equipment and band members book shows and drive themselves to nearby gigs. But keep in mind that you’ll be paid a gross rather than net amount for your performance fee. That means that you’ll be responsible for paying your own taxes and other withholdings, so having the services of an accountant or tax preparer is a worthwhile investment.

As your band grows, your financial commitment will too. You’ll take on additional expenses for travel, meals, lighting, sound, roadies to help you set up and break down your gear, and such additional employee expenses as taxes, healthcare and other benefits.

Digital Music News lists the expenses and revenue generated by the nationally known indie band Pamplamoose. It shows that a 28-day tour generated about $136,000 in ticket, merch and associated revenue, but ran up about $147,000 in expenses. And yet it was considered a financially successful tour because it triggered additional iTune sales. Study the article for an excellent breakdown in touring expenses on a national level.

Who is the target market?

The immediate clients of a live band are the payers for the services. This includes managers, owners and booking agents at bars, concert halls, outdoor events and other public and commercial spaces. But, depending on your business plan, it can also include those who hire talent for weddings, corporate events, birthday and anniversary parties, bar and bat mitzvahs and other celebrations.

Your ultimate customers, however, are the fans who will watch and hear you perform. If your band can generate excitement from this crowd, and build it in numbers, that will go far toward encouraging hirers to continue booking your group—at perhaps higher fees.

How does a live band make money?

Bands most often generate revenue by charging management of the event location. Larger and more successful bands might, in addition, have their tours partially or fully underwritten by music labels (although this is less prevalent today) or by corporate sponsors/advertisers.

An accompanying or alternative source of income is directly through those who watch their performances, such as through cash tips. This is most likely in the case of street performers.

Another revenue stream can be through the sale of merchandise (often called “merch” in the trade) associated with the band. This can include recorded music, t-shirts, caps, posters, buttons and other paraphernalia that can be sold at the performance venue before, after or during the show, or online at such ecommerce sites as iTunes or Amazon.

How much can you charge customers?

Performance fees are based on the band’s popularity, which translates, for your clients, into the ability to draw customers into the establishment who’ll either pay for the performance and/or consume alcohol and food or otherwise spend while watching and listening. Therefore, your pay can range from tips only to hundreds of thousands of dollars.

You must also know what your competition is charging. Gigmasters is a valuable tool in this regard. Although the website’s purpose it to help venues book talent, the breakdown of fees charged by talent and in various cities across America, by genre/format, can serve as a useful guide. For instance, it’s easy to see that the Gatsby Gang Jazz Band in Phoenix charges a range of $1,000 to $4,500 per performance. And that the Stringtown Trio, an acoustic pop band in the Fort Wayne, Indiana area, bills in the $650 to $3,600 range.

As for your merchandise, price it according to competitive prices found at other performances or online. Or simply give your merch away to enhance visibility and reward fans.

How much profit can a live band make?

Your talent, time, energy and visibility are your only limitations. As you learned earlier, the top bands in the world can launch tours that make hundreds of millions of dollars. For others, the band business can be a lucrative side job on nights and weekends.

How can you make your business more profitable?

Talented band members can generate additional income in the following ways:

  • Record your music and sell it, along with other band-related merch, at venues or online, through music services such as iTunes.
  • Initiate relationships with music labels, producers and other talent to hire on as session musicians on the recordings of other artists.
  • Compose, produce and/or play on soundtracks ]for commercials, film and television shows, corporate audio/visual presentations, sound for events and other media.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your live band is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history, which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to legally charge money as a live band. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Music Licensing

In order to play music in a business setting, permission must be acquired from the composer or license holder. Typically, it is possible to obtain a “blanket” license allowing a businesses to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from Performance Rights Organizations, such as ASCAP or BMI.

Services Contract (e.g. MSA)

Bands should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, and service level expectations. Here is an example of one such services agreement.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Live Band needs and how much it will cost you by reading our guide Business Insurance for Live Band.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a live band

It’s critical that you know and understand your audience—those who can book or influence the booking of your performances and the fans of your music. Where do they hang out? Your initial marketing strategies might be as modest as posting flyers at coffee houses, bars or on telephone poles in neighborhoods where you’re likely to find prospective fans.

Have a band page on Facebook, post performance photos on Instagram and audio recordings on SoundCloud and have a dynamic presence on other social media where the band will come to the attention of fans and decision makers. Also, be on the lookout for and make yourself available for interviews on Internet, satellite and terrestrial radio stations and podcasts and for blogs, magazines, newspapers and other media where you can come to the attention of your audiences.

How to keep customers coming back

Your sound and image should be everywhere. Get a graphic designer to create your band’s logo and associated art and use it to design t-shirts and other apparel. Record and distribute your music online or at your events. This is easier and less expensive than it’s ever been. Most musicians know at least one individual has audio engineering capabilities and can capture your sound in a home office, on locations or in a rented performance space. You can either sell this music or give it away free to build a fan base.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Ownership of a live band usually includes the actual musicians. Owners generally have a passion and instinct for music, a great deal of energy and motivation, and a talent for crafting a group style and sound that appeals to audiences. In addition to their performance skills, live band owners must be able to sell their services to booking managers at venues and to the audiences who watch them perform.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a live band?

Band success involves a great deal of energy, creativity and persistence. Here are some of the multiple activities involved.

  • Scheduling performances. Some bands have managers or talent agencies to take on this critical responsibility, but many groups starting out must interact themselves with venue and booking managers or individuals who want to hire a band for private or corporate events. Often, this duty will and should fall on the band member with the most confidence, sales ability or outgoing manner.
  • Composing and practicing. This can involve finding (and often paying for) space where the band members and their gear can spread out and they can perform without disrupting neighbors. The musicians must regularly update their sound with new material, whether by covering other artists or writing and learning original compositions.
  • Auditioning talent. Band members frequently leave groups for other bands or to make other use of their time. That means there’s a frequent need to find and groom new talent.
  • Upgrading instruments and gear. As your business grows you’ll need to make additional investments in musical instruments, soundboards, lighting, sound effects and other gear.
  • Marketing and media. You must constantly maintain your social media presence, upgrade your visual look, buy and design group-associated merchandise and strategize new ways to attract fans and bookings.
  • Networking. This means going where your audience is likely to be—at shows and other performances. Here you’ll scope out your competition and potential new members, find out about new sounds and stylings and meeting and greeting managers, booking agents, venue owners, music label representatives and others who can influence your success.

What are some skills and experiences that will help you build a successful live band?

Talent is critical, but that’s subjective. If your sound or means of expression can find its own audience—one that will generate positive word of mouth—this can boost bookings and increase performance fees. Your band’s success is ultimately driven by your ability to book as many profitable performances as possible while spending as little as possible on travel, meals, lodging and other out-of-pocket expenses in support of your bookings or tours.

What is the growth potential for a live band?

Live bands range from groups that stay together for an underpaid local performance to two to national tours. According to this article by the Los Angeles Times, the highest grossing band tours of 2016 included Bruce Springsteen ($268.3 million), Beyonce ($256.4 million), Coldplay ($241 million), Guns N’ Roses ($188.4) and Adele ($167.7 million).

Keep in mind that large tours involve the payment of astronomical outlays for staff, travel, stage shows, costuming, dancers and side performers, advertising, management and other expenses, so profits are much smaller.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a live band?

Turn into an avid salesperson, or have at least one playing or non-playing member of your group with the confidence and perseverance necessary to contact venue managers, promote your band and book performances. This skill can seem counterintuitive to musicians, who often see themselves as artists or creative types rather than marketers, but it’s critical. You probably won’t start out with a booking agent in your entourage, so most of this work—at least in the early days—must be self-derived.

You’ll need professional-quality audio recordings, and possibly videography if your physical presence is a strong selling point. Your portfolio can be posted to such free sites as YouTube and SoundCloud to promote your group to bookers and fans alike.

One final tip…while it can be both easy and comforting to continue returning to the same venue on a regularly booked schedule, you’re better off fanning out and finding new locations. That’s because fans can grow tired of you if they keep seeing you at the same space, so try to develop new fan relationships even if it’s difficult.

How and when to build a team

Your team will most likely start with a pretty sparse staff—band members and volunteer help, including mates, friends and family to drive, sell merchandise and help transport and set up gear.

On the talent side, you might have to constantly add musicians to craft an improving sound or replace those who quit your band. You might also need to recruit players as side performers while recording or performing live.

At some point, you might have the financial ability (and the need) to add to your management team. A manager can better organize your group and maintain responsibility for travel arrangements and expenses and other day-to-day issues. An agentt will help book and schedule performances. The largest and most successful bands also have working relationships with lawyers, accounting firms and licensers. And all employ roadies and other help to transport the band and gear to performances, set up and break down shows, run lights and audio and perform other duties before, during and after shows.

These additional staffers will only be added as revenue and job demands increase. Build your team slowly, splitting as many duties as possible between band members and other insiders for as long as possible.

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