Artists or labels who consistently make $800 a month or just above it have mounting anxiety about the risk that is about to come their way. This is why you feel this worry creeping up about what to do next—will I continue to survive? How can I protect myself? All of this is happening because you actually see that it's possible. It's natural, and it happens to all of us. But if you want to prepare yourself for growth, protect yourself, and fund yourself, tune in to today's episode of the Music Money Makeover Show.
Protect you from you and them!
The invisible problem that you don’t see coming over the hill is protection for the intellectual property—your songs—from potential issues that can arise in both the industry and your personal life. From fights, legal disputes, personal accidental problems, to fraudulent contracts, you need protection. If you're earning $800+ per month, it's the perfect time to start building your personal record label as an LLC. While setting up an LLC might seem daunting and costly at first, it's essential for protecting your music career. You need to form a company to keep your personal assets separate from business liabilities and safeguard your intellectual property. Without this protection, you risk personal liability for business debts and legal issues, and you could lose control of your music rights. But if you take this step, you'll gain legal protection, tax benefits, and a professional business structure that unlocks funding opportunities—which I'll explore shortly.
A 30% Tax bill is lurking in the dark!
The thing about meeting this $800 a month threshold is that you're already in $10,000 a year territory. If you're working a job and you have an additional $10,000 in income from a side hustle, this is getting taxed—it will be getting taxed at 30%, easy. The problem is you're not going to have the money at the end of the year to pay Uncle Sam, or what's left of him. 30% of $10,000 is $3,000, and I don't think you have that lying around. Due to the fact that all of your money was made digitally, there is no way that you can get around this, and because you don't have a company, you can't write anything off. This is why you need your personal record label, because in addition to the insurance and protection, tax liability is the first thing that you want to take care of because you’ll want to keep all the money that you can possibly keep in your pocket. $3,000 as an artist or musician is nothing to sneeze at.
Opens the doors to much needed funding.
If you made it to $800 a month, then the question is: how do you make it to $8,000 a month? Part of asking this question is getting the funding that you will need to push yourself to that level. Even though I offer this funding in the Music Money Makers Community and in my 60-day record label course, it requires an LLC to get funding for your personal record label and keep it separate from you. If your personal credit is decent, you'll be able to get a lot more for your business to get started. This will be the first level of funding that you get with your personal label. Yet you can't secure angel investment, crowdfunding, or any other private sources legally without the LLC's legal structure. Now, I'm pretty sure you can see why this is important. When you secure funding, things start moving faster when you use it properly!
What if I can't afford to set up an LLC?
The cost is the least of your worries losing money to taxes and legal issues will be a problem. This is not a good reason to avoid protecting yourself. Get around it by starting small and using the initial tax savings to cover setup costs. If you avoid it Your personal taxes will mount fast and you’ll remain personally liable for everything. If you get it done you'll save money long-term and protect your assets. Besides it’s not that expensive.
What if the paperwork is too complicated?
The LLC process is really simple. That's why I created the 60 Day Record Label to simplify things for you! Not having a personal record label of your own that is a company limits growth significantly! You can even use sites like IncFile or Registered Agents Inc. if you feel you just can't do it, and I recommend them anyway. Personal asset loss is a real problem in this game, and if you go through with it, you gain credibility in the finance and legal departments.
What if my income isn't consistent enough?
Income consistency isn't the problem for banks when it comes to funding—missing growth opportunities is. If you're seeking funding at $10,000 a year and can show it, you're already in the game. If you avoid funding your label, you'll miss out on funding and tax benefits just by having the bank's money. However, if you take advantage, you'll be positioned for growth and professionalism!
Here’s what you can do!
Start your LLC formation process today - use services like IncFile or Registered Agents Inc. to make it simple and affordable
Set up a separate business bank account as soon as your LLC is formed to keep personal and business finances separate
Begin tracking all your music income and expenses meticulously to maximize tax deductions and prepare for funding opportunities
But 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 fool proof process, Grab the 60 Day record label course and get it done today! You gain the ability to get real funding, prevent yourself from getting screwed contractually, and keep the middle man out of your pockets. Click the link below to get started right now! If you’re skeptical grab the free guide, "10 Ways to Increase Your Record Labels Profits," a free split sheet comes with the download!
Your Benefits look like this
Setting up an LLC will shield your personal assets from business liabilities so you can build your music career with confidence
Proper business structure enables tax deductions and write-offs so you can keep more of your hard-earned money
Having an LLC opens doors to business funding and investment so you can take your music business to the next level
If you say screw that label!
You could lose your personal assets and savings if your music business faces legal issues or debt collection
The emotional toll of dealing with unexpected tax bills and legal problems can crush your creative spirit and motivation
You'll have to choose between investing in your music career or paying off preventable expenses - a choice you never should have to make
At the End of the Day
The decision to protect your music business with an LLC structure isn't just about avoiding problems – it's about setting yourself up for sustainable success. By taking action now, you're investing in your future and creating a foundation that will support your growth from $800 to $8,000 monthly and beyond. Don't let fear or hesitation hold you back from taking this crucial step in your music career.
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