Legal Terms in Plain English

In plain English: IRS terminology for a freelancer or independent contractor. You get a 1099 tax form instead of a W-2 because you're not an employee.

In plain English: A music contract where the label takes a cut of ALL your income—not just record sales, but touring, merch, sponsorships, everything.

In plain English: A tax form you file to pay taxes on your startup equity NOW at its low current value, instead of later when it might be worth much more.

In plain English: Upfront money paid before your work earns anything—like a loan against future royalties. You don't pay it back directly, but you don't earn more until it's 'recouped.'

In plain English: A percentage of sales you earn when people buy through your special link or code. You get paid based on how much you actually sell.

In plain English: The percentage your modeling agency takes from your earnings—usually 10-20% from your pay, and sometimes they charge the client too.

In plain English: Protection for early investors that adjusts their ownership if the company raises money at a lower valuation later. They don't get hurt as badly by a 'down round.'

In plain English: A private way to resolve disputes outside of court. A neutral person (arbitrator) hears both sides and makes a binding decision.

In plain English: Transferring your rights or responsibilities under a contract to someone else.

In plain English: Profit participation paid after a project makes money—your share of the profits after the investors and studio have been repaid.

In plain English: A license letting venues play any song in a catalog for a flat annual fee. This is how restaurants and bars legally play music.

In plain English: The amount you get paid for a modeling job—could be hourly, daily, or a flat rate depending on the type of work.

In plain English: A contract term that stops you from working with competing brands during (and sometimes after) your deal. The brand wants you all to themselves.

In plain English: When someone breaks their promise in a contract—they don't do what they agreed to do.

In plain English: A one-time payment for your work instead of ongoing royalties or residuals. You get paid once, and that's it—no future payments.

In plain English: A one-time payment that lets the client use your images forever, instead of paying you every time they run an ad. Usually worth 2-5x the day rate.

In plain English: A spreadsheet showing who owns what percentage of your company—all the founders, investors, and employees with equity.

In plain English: California's privacy law that gives residents the right to know what data companies collect about them and request its deletion.

In plain English: Getting legal permission to use someone else's creative work in your project—like sampling a song or showing a brand in a film.

In plain English: A waiting period before any of your equity vests. If you leave before the cliff, you get nothing. It protects the company from short-term hires.

In plain English: An agreement where you share your publishing rights with a music publisher—they take a percentage (often 50%) in exchange for pitching and managing your songs.

In plain English: A model's business card showing your best photos, measurements, and contact info. It's what you leave behind at castings and send to potential clients.

In plain English: The brand's right to review and approve your content before you post it. Too many revision rounds can become a nightmare—limit them in your contract.

In plain English: A loan that turns into company ownership later—usually when you raise your next funding round. Investors get shares instead of their money back.

In plain English: Your automatic legal right to control creative work you've made—like songs, photos, code, or written content. You don't have to register it, but registration helps if someone steals it.

In plain English: A more formal business structure, often used by companies seeking investment. It's its own legal 'person' separate from you.

In plain English: The specific content you agree to create for a brand deal—like '3 Instagram posts, 2 Stories, and 1 Reel.' This should be spelled out clearly in your contract.

In plain English: A formal request to remove stolen content from the internet. If someone posts your work without permission, you can send this to get it removed.

In plain English: Getting paid a percentage of ticket sales instead of a flat fee. Riskier, but you can earn more if the show sells well.

In plain English: A clause that lets majority shareholders force minority shareholders to sell if a buyer wants 100% of the company. Prevents small owners from blocking a sale.

In plain English: Doing your homework before making a big decision—like investigating a company before buying it or checking out a partner before signing a deal.

In plain English: The percentage of your followers who actually interact with your posts (likes, comments, shares). Brands use this to decide if you're worth partnering with.

In plain English: A contract term that stops you from working with competitors or taking similar jobs during (and sometimes after) your deal.

In plain English: A legal obligation to put someone else's interests first—not your own. Lawyers have this duty to their clients, meaning we're legally required to look out for YOU, not ourselves.

In plain English: The 'act of God' clause—events beyond anyone's control (like hurricanes, pandemics, or wars) that excuse someone from their contract duties.

In plain English: A clear statement telling your audience you're being paid to promote something. Required by law whenever you have a 'material connection' to a brand.

In plain English: European privacy law that gives people control over their personal data. If you have European customers, you need to follow these rules.

In plain English: When a brand sends you free products hoping you'll post about them. No contract, no obligation—but if you do post, you still need to disclose it.

In plain English: An in-person meeting where clients look at you to see if you're right for a job. It's like an audition but often quicker—sometimes just 30 seconds.

In plain English: The backstage area where performers wait before going on stage. Your rider might specify what should be stocked there.

In plain English: The least amount you'll be paid for a gig, no matter what. Even if ticket sales are bad, you still get this base amount.

In plain English: The main company that issues mechanical licenses for cover songs and samples in the US. They make it easier to legally release covers.

In plain English: The main act—the performer whose name goes on the marquee and who performs last. Headliners get top billing and top pay.

In plain English: A promise to cover someone's losses if something goes wrong. It's like saying 'if this causes you problems, I'll pay for it.'

In plain English: A contract that spells out you're a freelancer, not an employee—what you'll do, what you'll be paid, and who owns the work you create.

In plain English: Using someone else's protected work (copyright, trademark, or patent) without permission—basically, stealing their intellectual property.

In plain English: Which court or legal system has the authority to handle a case. Where you can sue or be sued.

In plain English: A partial payment you receive if a project is cancelled after you've started working on it. Compensation for your time even if the final work is never used.

In plain English: A partial payment you receive if a client cancels a project after you've started. Compensation for your time even if the work is never used.

In plain English: An extra charge added to invoices that aren't paid on time—usually a percentage of the invoice or a flat fee per month.

In plain English: Legal responsibility for something. If you're 'liable' for something, you could be on the hook to pay for damages or fix the problem.

In plain English: Giving someone permission to use your work under specific conditions—usually in exchange for payment—while you keep ownership.

In plain English: Your legal right to control how your image, name, or appearance is used commercially. No one can use your face to sell things without permission.

In plain English: A pre-set penalty agreed upon in advance for breaking a contract—so you know exactly what you'd owe if things go wrong.

In plain English: The order people get paid when a company is sold or shut down. Investors with liquidation preference get their money first, before founders and employees.

In plain English: Taking a dispute to court—when you sue someone or get sued. It's the formal legal process of resolving disagreements through the court system.

In plain English: A business structure that protects your personal stuff (house, car, savings) if your business gets sued. It's like putting a protective wall between your business and personal life.

In plain English: The actual recorded version of a song—the final audio file. This is different from the song itself (composition). You can have many master recordings of the same song.

In plain English: Money paid to songwriters every time their song is reproduced—whether on vinyl, CD, or streamed. It's payment for the 'mechanical' reproduction of your music.

In plain English: A professional document showcasing your audience demographics, engagement rates, past brand work, and rates. It's like a resume for influencers.

In plain English: How you and the venue divide money from merchandise sales—t-shirts, albums, etc. Venues often want 15-30% of your merch revenue.

In plain English: Getting paid in chunks as you complete phases of a project—like 25% upfront, 25% at design approval, 50% on delivery.

In plain English: A contract term that lets a brand drop you if you do something that makes them look bad—like getting arrested or posting controversial content.

In plain English: Your 'home' agency that discovered you and manages your overall career—they place you with agencies in other cities and get a cut of everything you earn.

In plain English: A promise to keep someone's secrets. If you sign one, you agree not to share their confidential information with others.

In plain English: Royalties paid to performers and labels (not songwriters) when recordings are played on radio or in public outside the US.

In plain English: Payment terms meaning the client has 30 days to pay your invoice after receiving it. Net 15 means 15 days, Net 60 means 60 days.

In plain English: A contract term that stops you from working with a client's competitors for a certain time. Can limit your ability to find work.

In plain English: A New York law protecting models from abuse and exploitation—requires written contracts, limits commission rates, and mandates safe working conditions.

In plain English: The performer who goes on first to warm up the crowd for the headliner. Less pay, less time, but great exposure.

In plain English: The rulebook for your LLC—who owns what percentage, who makes decisions, and what happens if someone wants to leave.

In plain English: A deal where someone pays you to 'hold' the rights to your work for a set time while they try to get it made. If they don't proceed, rights come back to you.

In plain English: Protection for an invention—a new product, process, or technology. Gives you the exclusive right to make and sell it for a limited time.

In plain English: Daily allowance for living expenses when working away from home—covers meals, incidentals, and sometimes lodging.

In plain English: Money paid whenever your song is played publicly—on the radio, at a concert venue, in a restaurant, or streamed online.

In plain English: Forever. If a brand wants usage rights 'in perpetuity,' they're asking to use your content indefinitely—which should cost significantly more.

In plain English: Percentage points of ownership or profit sharing—'2 points' means 2% of the profits or royalties.

In plain English: A special class of shares that investors get—they have extra rights like getting paid first if the company is sold or goes bankrupt.

In plain English: A document explaining what data you collect from users, how you use it, and how you protect it. Most websites are legally required to have one.

In plain English: Companies like ASCAP, BMI, and SESAC that collect royalties on behalf of songwriters when their music is played publicly.

In plain English: An investor's right to invest more money in future rounds to maintain their ownership percentage. They can 'follow on' to avoid being diluted.

In plain English: A contract between an artist and music producer covering payment, credits, and whether the producer gets ongoing royalties or a flat fee.

In plain English: The ownership rights to a song's composition (the lyrics and melody). Whoever owns publishing rights controls how the song is used and collects royalties.

In plain English: A contract term that stops you from performing at nearby venues around the same time as your booked show. Protects ticket sales.

In plain English: A document listing your standard prices for different types of content—like $500 for an Instagram post, $1,000 for a TikTok video, etc.

In plain English: When a label or studio 'recovers' the money they spent on you before you start getting paid. They're paying themselves back from your earnings.

In plain English: Ongoing payments actors, writers, and directors receive when their work is rerun, streamed, or sold to new markets. It's like getting paid every time someone watches your show.

In plain English: A prepaid arrangement where you pay upfront for a certain amount of legal time each month. It's like a subscription for legal services.

In plain English: A monthly fee a client pays to reserve your time—like a subscription to your services. You commit hours, they commit payment.

In plain English: The number of times a client can ask for changes included in your price. After that, you charge extra for additional revisions.

In plain English: A list of requirements attached to your performance contract—things like travel arrangements, hotel preferences, food backstage, and technical needs.

In plain English: A simpler alternative to convertible notes—an investor gives you money now in exchange for shares later, without the complexity of a loan.

In plain English: The main union for actors, voice performers, and broadcast journalists in the US. Being a member gives you minimum pay rates and benefits.

In plain English: Using a piece of an existing recording in your new song. You need permission from both the song owner AND the recording owner.

In plain English: When a project keeps growing beyond what you originally agreed to—more revisions, more features, more work—usually without more pay.

In plain English: How long you're contracted to perform—like a '45-minute set' or '2 one-hour shows.' Going over can cause problems.

In plain English: A promise about how reliable your service will be—like guaranteeing 99.9% uptime or responding to support tickets within 24 hours.

In plain English: The simplest business structure—it's just you doing business. Easy to start, but your personal assets aren't protected if things go wrong.

In plain English: The actual recorded performance of a song—the audio file itself. This is separate from the song composition (the lyrics and melody).

In plain English: A written agreement among songwriters documenting who wrote what percentage of a song. Sign this before you leave the studio.

In plain English: A detailed document describing exactly what you'll deliver, by when, and for how much. It's the roadmap for your project.

In plain English: The deadline for taking legal action. If you wait too long, you lose your right to sue—even if you were wronged.

In plain English: The right to buy company shares at a set price in the future. If the company grows, you can buy shares cheap and sell them at the higher market price.

In plain English: A contract term that continues taking money from you even after the contract ends—the manager keeps earning from deals made during the relationship.

In plain English: Permission to use a song in video content—like movies, TV shows, commercials, or video games. 'Sync' means syncing the music to visuals.

In plain English: Protection for minority shareholders—if founders sell their shares, small investors can sell too on the same terms. You don't get left behind.

In plain English: A summary of the key terms of an investment deal—not a final contract, but an outline of what both sides are agreeing to before lawyers draft the real documents.

In plain English: The rules users agree to follow when using your website or app. It's the agreement between you and your users.

In plain English: A photo shoot where everyone works for free to build their portfolios. You get photos, the photographer gets content—no money changes hands.

In plain English: Valuable business information you keep confidential—like the Coca-Cola recipe. Not registered anywhere, just protected by keeping it secret.

In plain English: Protection for your brand identity—your business name, logo, slogan, or anything that helps customers recognize you.

In plain English: Extra payment for how your work is used—like additional money if a commercial airs nationally instead of locally.

In plain English: Permission for a brand to use your content beyond your own social media—in their ads, website, emails, or even billboards. This should cost extra.

In plain English: Earning your equity over time instead of getting it all at once. It's the company's way of making sure you stick around before you own your full share.

In plain English: Giving a brand permission to run paid ads from your social media account. They can boost your posts or create 'dark posts' that look like they're from you.

In plain English: A rough recording of a song—usually just vocals and basic instruments—used to pitch songs to other artists or remember ideas.

In plain English: When you create something for someone else and they own it—not you. The person paying owns the work from the start.