[quote name='BottomEndian' post='761672' date='Mar 2 2010, 11:39 AM']IIRC from lectures on music business/management and all that, if you're playing and earning money together from gigs, you're assumed to be in a [i]de facto[/i] business partnership. That means (among many, many other things) that you're jointly and severally liable for each other's debts until you draw up a partnership agreement that dictates otherwise. If you're talking significant investments -- and it looks like you are -- you should draw up a partnership agreement ASAP.
And of course, the partnership and all its members should be submitting an annual tax return.[/quote]
Exactly! A lot of the rules for partnerships are really counter-productive for bands. It's worth knocking one out just to counteract the unfavourable rules for partnerships.
These things can split bands up though!