When Bone was just in their teens, Steve Howse (Layzie Bone), was sent out of Texas to Cleveland, Ohio. Steve and his brother Stan (Flesh-N-Bone), formed the group Band-Aid Boys. Bryon McCane (Bizzy Bone) hooked up with Steve by someone telling him that Bryon was a rapper. Soon after Anthony Henderson (Krayzie Bone) and Charles Scruggs (Wish Bone, Steve's cousin) got acquainted with the brothers and formed the group B.O.N.E. Enterpri$e.
Looking for a record deal, Stan Howse worked at KFC to buy bus tickets for him and his group to go to meet with rap legend Eazy E at a concert in LA. They got backstage, rapped for him, and impressed him. Bone was signed on the spot for a 6 album record deal. Krayzie previously rapped for Eazy over the phone but he never got back with them. It is rumoured that while with Eazy, Bone made a song called Thugs-N-Harmony, and that's what gave them the idea for their current name.