We hold Song Circles in people's homes but don't collect money. Refreshments are donations to a buffet table. House Concerts have a fee which goes to the artist. Many are willing to appear in an intimate setting for a night's bed and board and a small take to cover expenses. Sales of CDs also offsets expenses plus gets their music out there.

If you have to have a bank account, open one in your own name. It doesn't sound as if there will be enough money to cause serious tax problems or even tempt.

I agree with Susan - start off informal and small and see where it goes.