Why Most Artist Labels Remain CASHLESS! (Even With an LLC)

You got your LLC... cool. But that doesn't make you a record label. Because right now, most artist-run labels are just empty shells — no agreements, no assets, no plan. And that's why many of you never make real money. Let's fix that!

Everyone says, "Start an LLC and become legit." So you did that — but now what? You've got a business name, maybe an EIN… but no income, no structure, and no idea how this actually turns into a profitable label. You feel like you're playing CEO but living like an intern. And worst of all? You don’t even know what you’re missing. And now you're stuck with a "label" that can't attract investment, can't build assets, and can't make you any real money. That's because an LLC is a legal wrapper, not a business strategy. And that's why it's not working for you. So, if you don't build what goes inside the LLC, you're not running a label — you're just registered.

I figured this out years ago while building my 60 Day Record Label System. While creating that system, I had to figure out what makes money, how it makes money, and how it's leveraged. However, to legitimize your LLC so you can use it for those purposes, you'll need an operating agreement, you'll need to capitalize the business, transfer or purchase copyrights to or for it, and pick a model that you will use to make money from the assets you acquire (i.e., labor and copyrights) — because at the end of the day, this is a media and information business.

Create an Operating Agreement

Most indie labels don't have any structure because for whatever reason, someone told you all you needed was the LLC and the worst distributor of all — DistroKid! That’s like putting rims on a car with no engine. I wonder where those people are now. However, if you're in business with partners or artists, you need a clear operating agreement that lays out: who owns what, who controls what, and how profits are split. This is the very first contract you will create for your label. No agreement = chaos later. This one document separates a real business from a fragile hobby because it gives your LLC shape and direction.

Capitalize Your LLC

Now, for some strange reason, everyone wants to start a record label with no money and expect a full-time livable profit at the least and $83,000 a month at best in 12 months! Listen, you can't run a label with vibes. Your business needs capital — whether it's $500 or $5,000 — to operate, fund releases, and reinvest. So, treat it like a real company because it is one. Set a launch budget, track your contributions (Funding & Labor), then plan for profit. Without capital, your LLC is just a name with no engine. If you apply these things, you’ll start eliminating the confusion that’s been holding you back — and finally have space to focus on real moves. This will ultimately set you up for better success than trying to start from zero.

Transfer Your Copyrights

Now, the label doesn't own anything until the music lives inside it. If your masters and publishing are still under your personal name or someone else's, your LLC has no value and is worthless. Transfer your copyrights (i.e., masters) to the business that you already have on contract and create a standard deal for your Record Label or producer agreements that you will use to acquire master rights. That's how labels build long-term wealth and licensing power. Once you add these master rights to the catalog and begin tracking income, you can value your label for more leverage (i.e., money) to be invested in you to continue your business. Because if your music lives in your hard drive and not your company, you’ve got a passion project — not a business. Transfer the rights, build the catalog, and watch the value of your label finally become real.

Pick a Real Business Model

"We just put out music" is not a business model — it's a slogan. You need a specific method or style of putting out music based on the services you offer. If you are artist-run, this includes you as well. However, it's important to note that not every label is full-service. You need to choose how your label is going to: Acquire or license music, Exploit masters through sync, direct sales, or content, and Generate repeatable revenue from your intellectual property. A real label knows where its income will come from before the music drops. List out everything you plan to sell and acquire as a company, and you can begin to build your revenue streams from there. Make sure you identify the IP attached to the product you're selling. This will give you a bit more clarity when you're trying to figure everything out.

Stop Doing This

If you skip this setup, your label will fall apart when the money shows up — or worse, it'll never make any. That's the reason why all record labels fail. No systems = no protection, no power, no real progress. Filing the LLC is just step one. But everything I just expressed is how you turn it into something that pays you. This misunderstanding only comes from people who tell you information but don't build labels of all sorts from the ground up. But if you continue moving like they told you, you'll stay stuck where you are. Rewatch the video if you need to get the steps right.

The Grand Scheme

Right now, the biggest change in the music industry is that a self-sustaining business model for creators is the new flex. The artists who build systems are the ones getting real money, sync deals, catalog buyers, and passive income — not just streams. If you don't build your label on a foundation of structure, ownership, and strategy — you'll always be chasing a check instead of building equity. The business world won't respect you until your business respects itself. If you wait, you'll keep pushing music out of an empty vehicle. You'll stay in the loop of releasing songs with no leverage, no value, and no real plan to scale — while others build catalog wealth right in front of you. The good news? There’s a proven step-by-step system to build your label from the inside out — and I’ll walk you through every piece. So the question now is: are you finally ready to build a business that pays you back?

Here's What You Can Do!

You can keep guessing and hoping you'll get it right yourself... or you can follow a system that's already working. You deserve more than vanity metrics and empty paperwork — you deserve ownership, leverage, and peace of mind. If you're serious about making this happen, click below and start the process with my 60 Day Record Label System. The real question isn't "should you do this?"—it's "how much longer can you afford NOT to?"

Breathe for a Second

The truth is—it's not the system itself, your ability to get it done, or even your time and money that's the real issue. It's the anxiety that maybe it won't work if you try—because you've been burned before, overloaded with info, and paralyzed by seeking perfection. But this does work, especially when you follow a proven system like the 60 Day Record Label and give yourself permission to build it step by step. You don’t need perfection — just a real plan that works.

If You Stand Still (The Cost of Doing It Alone)

Take time to do your research as you should, but consider what's at stake: wasted time, missed opportunities, and thousands lost on poorly structured releases and artist deals. Burnout, doubt, and that gut feeling that you're faking it—not really running a business. You know that impostor syndrome stuff. To get over that, either build structure and gain control, or you'll stay guessing and watch someone else live the life you imagined for yourself.

At the End of the Day

If you've been struggling to understand what makes a record label actually work, feeling like your LLC is just a name and some paperwork, and wasting time, energy, and money chasing success without systems—you now have the clarity and steps to become a real label owner. One with structure, catalog, capital, and a strategy. You’re not just an artist with a logo anymore — you’re the architect of a real, money-making label. A strategist. An executive. A builder of generational value.