Legal Issues - Home Studio

dhughes · 27th January 2004

Does anyone know what legal issues are involved in operating a studio out of your home? I'm not talking about "if someone slips on a banana in your backyard." I was wondering if there are zoning issues (assuming you live in a non-comercially zoned area) and stuff related to state licensing.

My band is incorportated in the state of Florida and we'd like to earn some cash by helping a few bands make some demos, but want to make sure we do it right.

Any advice is appreciated.

toledo3 · 27th January 2004

Quote:

Originally posted by dhughes
Does anyone know what legal issues are involved in operating a studio out of your home? I'm not talking about "if someone slips on a banana in your backyard." I was wondering if there are zoning issues (assuming you live in a non-comercially zoned area) and stuff related to state licensing.

My band is incorportated in the state of Florida and we'd like to earn some cash by helping a few bands make some demos, but want to make sure we do it right.

Any advice is appreciated.

Yeah- basically, if you are in a non-commercial zone, and you aren't liscensed, you can have your ass shut down any minute... BUT...

...all that really amounts to is that you are told to stop. The whole process of getting somebody to stop operating a commercial enterprise in a residential neighborhood is pretty hard, and it will not likely be a problem unless a neighbor gets a hard on against you. I think the worse that could happen is that you could get some fines, but you could probably get out of them easily.

That being said, it is people like you that are ruining the studio business. You probably don't have a half a clue what you are doing, you will underbid real studios with real engineers that have to actually PAY for a liscence and a commercial space. In the end, these bands will end up with an amateur product, while you guys get to pay off your gear tab with their money.

crispy · 27th January 2004

Quote:

Originally posted by toledo3

....That being said, it is people like you that are ruining the studio business. You probably don't have a half a clue what you are doing, you will underbid real studios with real engineers that have to actually PAY for a liscence and a commercial space. In the end, these bands will end up with an amateur product, while you guys get to pay off your gear tab with their money.

OUCH!

dhughes · 27th January 2004

Ha! Funny. Too bad.

Yeah, we have crappy equipment and terrible recording space. But I have worked professionally in the audio field for the last five years doing sound design and surround mixing and at least have a clue.

But how is wannabe like myself ever to have the nice stuff you have and make the wonderful recordings that you do if I don't start small and underbid you guys for the little stuff?

toledo3 · 27th January 2004

Quote:

Originally posted by dhughes
Ha! Funny. Too bad.

Yeah, we have crappy equipment and terrible recording space. But I have worked professionally in the audio field for the last five years doing sound design and surround mixing and at least have a clue.

But how is wannabe like myself ever to have the nice stuff you have and make the wonderful recordings that you do if I don't start small and underbid you guys for the little stuff?

I'm not getting TOO down on you man

"That's just the way it is..."-

Actually, there are some guys in town doing what you are doing, and they just got their studio and house robbed. If you are doing this out of your house, you have to be careful- and you are going to have a hell of a time actually getting insurance.

dhughes · 27th January 2004

Alright, now you're just trying to scare me out of the business. Tampa is a good 1.5 to 2 hours away. You'll be fine. And, I'll be sure to send the metal band your way. He he.

Actually, I've got renters insurance that does cover the stuff and a good security system. But, still it is something to consider if you are going to bring people over that you don't know very well.

Anyway, thanks for the input. If anyone has any other advise about legal issues and home studios please post.

toledo3 · 27th January 2004

Quote:

Originally posted by dhughes
Alright, now you're just trying to scare me out of the business. Tampa is a good 1.5 to 2 hours away. You'll be fine. And, I'll be sure to send the metal band your way. He he.

Actually, I've got renters insurance that does cover the stuff and a good security system. But, still it is something to consider if you are going to bring people over that you don't know very well.

Anyway, thanks for the input. If anyone has any other advise about legal issues and home studios please post.

Actually, if you are bringing others into your house, especially if anybody actually comes into contact with the equipment, your insurance is very likely to be null and void. You should check it out first.

bassmac · 27th January 2004

In Los Angeles... a two car garage that was built to be a two car garage, must remain a two car garage. This is what the building inspector told me when the neighbors turned me in. (long haired rock dudes pushing Marshall stacks down the street tends to draw attention in a residential hood)

Parking is another big issue - having customers come to your house is not allowed in home business.

The rules of home business pretty much narrow it down to things you can do yourself with a phone, computer & fax.

Obviously people do whatever they want, but keep in mind - any money spent on construction will be wasted if you get shut down.

toledo3 · 27th January 2004

You know, another thing you should consider, is that recording people can really take up a lot of your and your band's creative time. In some ways it can kill it. This can be a cool thing for you guys to do, but keep perspective, b/c if creating is your main love, you are just going to get bitter by recording other people's lame ideas. Spend time recording your own lame ideas

This is kind of where I am at right now....

dhughes · 27th January 2004

I think you make a very good point about the band's creative time. It is certainly more fun to record your own lame crap then someone else's.

There are probably others out there like myself who have been working in the audio industry for a bit yet lust to go out on our own on some level. When you start to get serious about it - you end up looking at outragous loans to get the equipment, space, and liscencing. So you end up either limited to a home studio that can only service your band or you end up in terrible credit debt with a very very uncertain future.

At the end of the day, it is certainly good enough to work in the audio field and have the security of knowing that if the ship sinks, it is not your ass that is on the line. Yeah, I think I'll keep my day job and record my band at night.

Thanks for the input.

prmntwaves · 27th January 2004

Quote:

Originally posted by dhughes
Actually, I've got renters insurance that does cover the stuff and a good security system. But, still it is something to consider if you are going to bring people over that you don't know very well.

If you're running a business out of your home (using it for tax write offs, charging people to come over and record, etc.) your renters insurance may not cover that loss. Also, if someone slips and breaks their neck in your kitchen, trips over a cord and breaks their arm, or burns the place to the ground (with someone it) because of a circuit overload, your homeowners/renters policy won't cover that. You'd be leaving yourself wide open for a financially devestating lawsuit.

dhughes · 27th January 2004

Yeah, renter's insurance is only going to cover your personal belongings. If your equipment belongs to a business then you'll need other coverage. And liability, is obviously a whole other issue.

If you are doing business "underneath the table" and the assets are all personal belongings, you will be covered if someone breaks into your house and steals your stuff with renter's insurance. Beyond that, I don't know...

A note about renter's insurance: you have to have all your equipment appraised and submitted to your insurance company if you want it covered beforehand. Otherwise, they may screw you over. Know this much from experience.

drmad69 · 27th January 2004

You know, my solution was simple..

I don't charge for the service, I therefor am not operating a business. I did write things off but I didn't connect it with
my basement per say.

You just take a nth member of the band share and then you aren't actually getting paid directly, you are collabirating.

drmad69 · 27th January 2004

Oh and I've been over this with the insurance agent about 20 times, I pay a little extra to boost the celing on "electronics" and a little to boost the ceiling on "musical equipment" an dI'm covered. Because it's in my house. Period.

Bob Olhsson · 27th January 2004

Liability issues can be huge when working with entertainers because promoters and managers frequently take out an insurance policy to cover their losses if a performer can't make it to a gig. To the best of my knowledge home owner's or renter's insurance won't cover this.

staticinsect · 27th January 2004

FWIW:

when I took out my renters insurance on the place I'm in (just a few weeks back, actually), I of course mentioned my gear. for my part, I'm not running a business with it at the moment, and I rarely have anyone aside from myself and the odd relative in there. BUT, they still asked me all kinds of questions about it, trying to catch me out in a lie...

things like:

"do you ever have friends over for recording sessions?" (honest answer: no)

"do you make and release albums with the equipment?" (honest answer: yes, but I don't have a recording contract, and I only give CD-Rs away to friends and put it up for free on the internet)

"isn't that a high value of equipment for something that's just a hooby?" (answer: perhaps. I *used* to use it to make a living, but I changed careers a couple of years ago and still use the gear for fun. I already had it, why not keep using it?)...

after a bunch of similar questions and a long deliberation on their part, they finally conceded that I probably wasn't running a business or making money with the gear (which I'm not)... but it was clearly obvious that if I WAS running a business, they wouldn't have insured me. so you may want to double check that policy if you're going to have people in your place using the gear on a regular basis...

27th January 2004	#1
dhughes Gear addict Join Date: Dec 2003 Location: Orlando Posts: 345 Thread Starter	Legal Issues - Home Studio Does anyone know what legal issues are involved in operating a studio out of your home? I'm not talking about "if someone slips on a banana in your backyard." I was wondering if there are zoning issues (assuming you live in a non-comercially zoned area) and stuff related to state licensing. My band is incorportated in the state of Florida and we'd like to earn some cash by helping a few bands make some demos, but want to make sure we do it right. Any advice is appreciated. __________________ Thanks! Darin My work: http://www.mcl.ucf.edu/people/dhughes.html My crappy band: http://www.myspace.com/happyvalleyband My crappy myspace: http://www.myspace.com/darinhughes

27th January 2004	#15
Bob Olhsson Motown legend Join Date: Jun 2002 Location: Songwriter Gulch, Nashville TN Posts: 10,638	Liability issues can be huge when working with entertainers because promoters and managers frequently take out an insurance policy to cover their losses if a performer can't make it to a gig. To the best of my knowledge home owner's or renter's insurance won't cover this. __________________ Bob's room 615 562-4346 Georgetown Masters 615 254-3233 Music Industry 2.0 Interview

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27th January 2004	#8
bassmac Lives for gear Join Date: Jun 2002 Location: Los Angeles Posts: 683	In Los Angeles... a two car garage that was built to be a two car garage, must remain a two car garage. This is what the building inspector told me when the neighbors turned me in. (long haired rock dudes pushing Marshall stacks down the street tends to draw attention in a residential hood) Parking is another big issue - having customers come to your house is not allowed in home business. The rules of home business pretty much narrow it down to things you can do yourself with a phone, computer & fax. Obviously people do whatever they want, but keep in mind - any money spent on construction will be wasted if you get shut down.

27th January 2004	#9
toledo3 Lives for gear Join Date: Jun 2002 Location: Funky Town FL Posts: 1,304	You know, another thing you should consider, is that recording people can really take up a lot of your and your band's creative time. In some ways it can kill it. This can be a cool thing for you guys to do, but keep perspective, b/c if creating is your main love, you are just going to get bitter by recording other people's lame ideas. Spend time recording your own lame ideas This is kind of where I am at right now....

27th January 2004	#13
drmad69 Gear maniac Join Date: Oct 2003 Posts: 261	You know, my solution was simple.. I don't charge for the service, I therefor am not operating a business. I did write things off but I didn't connect it with my basement per say. You just take a nth member of the band share and then you aren't actually getting paid directly, you are collabirating.

27th January 2004	#16
staticinsect Gear interested Join Date: Dec 2003 Location: eastern canada Posts: 20	FWIW: when I took out my renters insurance on the place I'm in (just a few weeks back, actually), I of course mentioned my gear. for my part, I'm not running a business with it at the moment, and I rarely have anyone aside from myself and the odd relative in there. BUT, they still asked me all kinds of questions about it, trying to catch me out in a lie... things like: "do you ever have friends over for recording sessions?" (honest answer: no) "do you make and release albums with the equipment?" (honest answer: yes, but I don't have a recording contract, and I only give CD-Rs away to friends and put it up for free on the internet) "isn't that a high value of equipment for something that's just a hooby?" (answer: perhaps. I used to use it to make a living, but I changed careers a couple of years ago and still use the gear for fun. I already had it, why not keep using it?)... after a bunch of similar questions and a long deliberation on their part, they finally conceded that I probably wasn't running a business or making money with the gear (which I'm not)... but it was clearly obvious that if I WAS running a business, they wouldn't have insured me. so you may want to double check that policy if you're going to have people in your place using the gear on a regular basis...