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LLC Essentials: Mastering the Business Side of Music

If you’re just starting to put your music out or starting a record label, you may be wondering why you need an LLC. The problem is most music creators are fearful of this process because social media influencers have made it seem intimidating. But you shouldn’t be intimidated by LLCs because it’s the most beautiful thing you will ever create, even more than your first hit record.

The LLC is Its Own Corporate Entity

An LLC does business on its own. It has its own name, address, EIN (SSN), phone number, bank account, email, and birth certificate (Articles of Organization). It is its own person. It’s designed to take operations and liabilities out of your personal name. Why would we want this?

LLCs and Intellectual Property

In the music industry, intellectual property includes copyrights and trademarks for the most part. The LLC is designed to hold those intellectual property rights as assets. This means the LLC can own copyrights and trademarks.

LLC and Real Property

In the music industry, real property includes buildings for recording studios, video studios, apartments for artists to stay while recording, and much more. Yes, that’s right—the LLC can own these as well.

LLCs Can Earn Money

Because the LLC can own intellectual and real property, it can rent, lease, license, or lend these properties to potential buyers and lessees for a profit, right? Exactly!

LLCs Pay Taxes

Because the LLC earns money and owns property (real and intellectual), it has to pay taxes on its money. However, it can deduct expenses incurred to operate and make its money. These expenses are known as tax write-offs, and the income tax for every dollar earned that would otherwise be paid to the federal and state government is dismissed or written off for every dollar spent on write-off expenses.

LLCs Remove Liability From You Personally

Because the LLC is the one doing all the work and you are essentially the manager of this baby, everything that happens while doing business with the LLC is solely the responsibility of the LLC. How sweet is that! This is called the corporate veil (more on this in the 60-Day Record Label Course).

Ultimate Goal of the LLC

The ultimate goal of the LLC in the music industry is to build value for the property it owns and its operations to a status of maximum automation so that it becomes a money-printing machine with little effort.

How Quickly Can You Build One?

The registration can be done in as little as three days. However, everything I talked about in the very first slide will take you about two weeks.

Should I Start a Record Label LLC Before I Put Out Music?

If you are serious about creating a music career to help you advance in life and business, yes!

How Much Does It Cost?

It depends on how fast you want it done, what state you’re in, and how much you’re going to fortify your LLC to truly become its own entity.

Check This Out!

If you're a music creative or executive looking to build your label or publishing company in 60 days or less, with a step-by-step foolproof process, 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.

If You Build the LLC for Your Music Career

You’ll overcome one of the major roadblocks to actually growing in this business or any business, period. It will allow you to enter more doors than you think for a long time because it just keeps on giving!

If You Do Not Build the LLC

Then continue your hobby in the basement because you’re not serious, and that’s okay. LLCs are for music creators who are serious about their catalogs and business.


If you were struggling with understanding why you would need an LLC in this business, you now have the means to understand it a little better than before. Building an LLC is an essential step for any serious music creator. It provides a foundation for growth, offers protection, and sets you up for long-term success in the music industry. Take the leap, and you'll find that the process is not as intimidating as it seems.


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