I had a partnership through an LLC a couple years ago. The problem we ran into is that you have to dispense distributions according to ownership of the LLC. That is, if everyone is equal members of the LLC, the profits must be distributed equally as well. If that's how yours is supposed to work, that's fine; but suppose one member really bails on the band, misses gigs etc. When profits are distributed, they are legally entitled to their full percentage, based on the operating agreement. Just something to consider.Each member needing to be a separate entity seems a little extreme. Can't he set up a sole proprietorship and 1099 everybody at the end of the year? That's what my band has done the past couple years. That way each member is responsible for his share of the taxes.
Or set up a single LLC with all members included...which is what we just moved to this year.
I'm no tax or business expert though. It just seems unnecessarily complicated (and expensive) for EACH member do an LLC.