Artist Investment Agreement Template
This article deals with the points of agreement of an investment contract. This includes the point of view of both the artist and the investor. Setting up a furniture business can also benefit from tax advantages while proving that the artist operates in a legitimate business and not in a hobby. As a result, expenses can be legitimately deducted as operating expenses. Whether a contract is a pro-artist or a pro investor, the agreement should deal with decision-making and authorization. An investor agreement would indicate either the specific purpose for which the investment can be used. For example, production costs for a set number of masters. Or the contract can at least give the investor the right to authorize the expenses of his investment. A pro-artist agreement would stipulate that the artist can use the money at his discretion. This would give the artist the greatest leeway to decide how best to use the money if the circumstances of his career change. The following comes from the famous music industry lawyer Steve Gordon. Gordon is the author of 11 contracts that every artist, songwriter and producer should know. The last chapter of the book deals with investment agreements.
Liability claims should not affect personal assets such as bank accounts, stocks, homes and cars. However, an investor may be able to „penetrate the corporate veil“ if they are able to prove fraud on the part of the artist. For example, if the artist pays the fortune of the furniture company into his personal account, the investor can look for these funds to get his money back. Repayments can be made monthly, quarterly or semi-annually. An investor normally has the right to check the artist`s books. Third-party funds can be a welcome boost to an artist`s career. But the agreement between an investor and an artist must be well elaborated. Both the artist and the investor are well advised to seek competent advice in order to protect their interests and structure a fair agreement for both parties.
In addition, it is in the interest of an artist to conclude the contract not as an individual, but through a „furnishing company“. To do this, the artist must create an entity such as a corporation or LLC. This unit then conducts business on behalf of the artist. This protects the artist`s personal fortune by creating a „limited liability“. An upset investor who sues the artist for breach of contract can only try to obtain the reimbursement of the property of the artist`s furnishing company. Basically, an artist investment agreement involves someone who believes an artist will succeed. This person is willing to make a „bet“ by giving money to the artist to advance his career.