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8 Must-Do LLC Steps to Supercharge a Record Label



If you already have an LLC, I bet it’s not fully finished. One common mistake is the address, but we could go deeper into setting up for funding and protecting some assets. Many of you got ahead of yourselves and want to start a parent company. Don’t feel bad; this YouTube jargon can be overwhelming. I’m here to help you tighten things up so you can feel the power of your LLC.


Business Plan

Nothing transforms a business or LLC like a plan of action. Many of my followers who are starting a record label for themselves or others never seem to get this step down. However, if you can set your sights on a trajectory, define the help you will need, and outline who you will bring along or need to get the job done, you will be much better off than 90% of newcomers to this industry.


Virtual Address / Office

A virtual office adds a layer of protection between your personal residence and the general public. I recommend getting this type of address for professionalism, security, and financial mobility.


Certified Public Accountant

If there is one person I cherish the most, it’s my CPA! They help you with tax strategies that will help you grow as a business. Trust me, I’ve tried implementing tax strategies myself via YouTubers, but I can’t tell you how many meetings I had with my CPA last year to set myself up for this year. CPAs will save the day when it comes to getting your finances in order.


Dun’s Number

A Dun’s number is a credit score for your business credit to be reported on. You’ll need this for your next step. However, if you used an online registered agent, they more than likely already created this number on your behalf. Go to Dun & Bradstreet’s website (www.dnb.com) to register your business or claim your business there.


Business Credit Card

In the beginning, a business credit card is useful for monthly recurring charges made to the business, not for funding your recording process. Why? Because you’re not making enough income yet to cover the bill every month. This card will be used to protect the money you have in the bank. This is a security measure first. All cash flow must be protected.


3 Contracts

  1. Recording Contract

  2. Producer Agreement

  3. One Stop Agreement


Accounting Software

QuickBooks Online will save you at the end of each tax year and each quarter. Your profit and loss statements will read almost identically to your schedule C, and you can keep track of the cash flow of your business to know how much you have on hand and how much you need to borrow.


Age the LLC

This step doesn’t require much on your part, but if your LLC is built out properly with all the information that truly makes it an entity on its own, you’ll be fine. Let the LLC age and watch what funding opportunities open up to you in six months to a year.


If I Get Credit, How Should I Spend It?

You should never use credit unless you have a plan that involves breaking even or making a profit. There must be some type of gain from the play, whether monetary or asset-wise, and it shouldn’t leave you in the red for long.


When Should I Get a CPA?

You can actually get one when you start. You may not be able to afford them all year, but you can afford a yearly or semiannual check-in and strategy session.


Should I Get My Contracts from the Internet or an Attorney?

You should get your contracts from an attorney if possible. They can draft contracts for you based on your business plan and how you want to sign artists or purchase beats from producers. However, you can always use my contracts inside the 60-Day Record Label Course.


Check This Out!

If you're a music creative or executive looking to build your label or publishing company in 60 days or less, grab the 60-Day Record Label Course and get it done today! You’ll gain the ability to get real funding, avoid contractual pitfalls, and keep the middleman out of your pockets. Click the link below to get started now! If you’re skeptical, grab the free guide, "10 Ways to Increase Your Record Label Profits," which comes with a free split sheet download.


Adding These Elements

Adding these elements will not only make you appear professional but will also motivate you to take action with your LLC.


Not Adding These Elements

Not adding these elements will put you at risk in more ways than one and limit your growth.


Conclusion

If you were struggling with building an LLC that contains a few more elements to make it grow faster, you now have the means to get it done. Implement these steps, and you'll be on your way to creating a solid foundation for your record label, ensuring its growth and success.


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