Many new entrants into the business world of music want to build a conglomerate before the start-up. This often stems from fear, impatience, and lack of information. Your problem is you want to start at the finish line. You're too anxious, which means you have imposed too many challenges on your mind and not enough in the physical. Don’t let analysis paralysis screw your career up. Too many of you come to me with this problem, and though I thought I addressed it, I still get this question every week!
You Only Need 1 LLC!
At the base level of LLC management, you have to build a financial profile, accumulate assets, and learn how to flow cash in and out of the business. This can be very difficult, especially learning how to flow cash in this business.
Why Do You Need 1 LLC?
You don’t have enough risk mounted on your assets (copyrights) yet, and you don’t have enough cash flow to be managed under multiple LLCs. The recurring cost of the LLC every year, plus bookkeeping and operational expenses, will run your record label or multimedia company in the red every year.
LLCs Are the Beginning of Asset Protection
Many want several LLCs for asset protection, but the LLC is just the beginning of asset protection. You can move things to more complex structures to remove yourself from the assets, but in the beginning, it doesn’t really matter unless you’re going to scale the business fast and you know how to scale it fast.
When Can I Get Two LLCs?
When the copyright assets are at risk because you’re doing too much business with one LLC, like shows and everything that comes with it.
When the operations of the business are getting risky.
I Want to Make a Parent Company and a Holding Company Now So I Won't Have to Do It Later!?
The average person is not at any risk right now unless they live a dangerous lifestyle, and again, your assets aren’t valuable yet!
How Do I Make My Assets Valuable?
Raise the awareness of your music through promotion; then the masters, compositions, paraphernalia, and logos will become valuable.
Start with 1 LLC
If you start with one LLC, you’ll be able to grow easier with less headache. Once the next obstacle comes along, you will be ready to tackle it head-on bit by bit instead of having a tangled mess on your plate.
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.
Starting with One LLC Gets You This…
You avoid unnecessary costs and complexities.
A more focused and manageable approach to growing your business and assets.
Preparation for future challenges and complexities as your business expands.
Enhanced value of your assets, laying the groundwork for future success.
Streamlined operations, making the business more efficient and adaptable.
Understanding when and how to scale.
Starting with Several LLCs Gets You This…
Financial strain due to increased operational costs and complexities.
Operational chaos, hindering the growth and reputation of your record label.
Asset devaluation: Without proper focus and promotion, the assets under multiple LLCs may not gain value, affecting the overall worth and success of your label.
Conclusion
Remember, the journey of building a successful record label is a marathon, not a sprint. Start with a solid foundation, learn the ropes, and gradually build your empire. Your patience, prudence, and perseverance will be the keys to unlocking the doors of success in the music industry. So, take a deep breath, start with one LLC, and let the music play!
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