LLC
I bet you've heard this before...
'Get yourself an LLC with that stimmy and start making money!'
If not that then something like it. And if not anything at all, you've heard it now.
But let's break it down. Because honestly, that advice lacks one important thing: substance.
It's a lot easier to tell someone they need an LLC to make money and to start their own business than it is to actually put that into practice. By itself, this advice is misleading and incomplete.
Let's say you do know how to establish a separate entity with your local government and have the budget necessary to cover relevant expenses. How do you use it? Why should you have one?
Well, "LLC" itself stands for Limited Liability Company. It's a way to act under a separate entity to yourself; in other words, when you do business, you'll be doing it as your company and not as an individual. This has several benefits as an artist.
You'll have limited liability: this protects you and your personal assets from any damages your actions may incur. Without this entity, if you end up making a mistake and someone sues you, you could lose your personal property in the resolution. With an LLC, you'll be better protected.
You can collect publishing royalties: many PROs expect you to have a separate entity to collect publishing royalties. These are different from the writer royalties you can collect as yourself, and could double the amount of money you make from your music.
You'll seem more legitimate: having this in place will impress your collaborators and clients by demonstrating your professionalism and dedication to your craft. And, you'll be ready for any opportunity that calls for this level of formality.
Still, establishing an LLC can be a bit complicated. It depends on the requirements and laws of your state or local government. A good idea for this process is either hiring an attorney or using an online service to submit your paperwork. You'll need to maintain and update your credentials every year as well!
Also, if you're ever thinking about working for yourself, you'll definitely want an LLC. In this case we're talking about working as an artist, but this applies to everything!
If you want or need greater insight and resources, we cover this and much more in the Label Release Checklist. If you haven't already heard, we put together this workbook to help you turn your passion into a viable career. Learn how to make money from your craft with the LRC and start building your music business!
Let us know you want one! http://www.labelreleasechecklist.com
And of course, don't forget that Forever Current is here with you. Let us know if you have any questions.
Have a wonderful week!