The music business is a two-part endeavor. The artistic side focuses on songwriting, recording and performing. The business side deals with the marketing, profits and legal issues. In order to thrive in the music industry, you must handle your business as well as your creative pursuits. Part of doing that is branding yourself as a company instead of just as an artist.
Make an Operating Agreement for your LLC that clearly spells out the responsibilities and rights of each member of your LLC. Rights and responsibilities include how the company's business will be conducted, how much voting power a member has, how company profits and losses will be allocated and what happens if the company is closed down or a member sells their share in the LLC. You must also choose how much stake or percentage of ownership each person has in the company.
Fill out and file the Articles of Organization, which is the formal paperwork. You must also pay a filing fee that is specific to the state that you file in. You must choose one member, called the registered agent, to represent the LLC in tax and legal matters. Once the paperwork is filed and accepted, your LLC is registered. In some states, you must also publish a notification in the paper on your intent to create an LLC. This is called a publication requirement.
Purchase and acquire any permits and licenses the LLC needs to operate. In some states you need a business license, depending on the work you do. This applies to buying property like a music studio. You will need a tax identification number for your company as well.
Choose a name for the LLC that currently is unused by an already established LLC and complies with your state's regulations and rules. The Secretary of State office can assist you in finding out if your LLC name is available. Your LLC name cannot infringe on another company's name. The name must end with either an abbreviated form of the word Limited Liability Company (LLC, Ltd. Liability Co.) or the whole phrase to signify that it is an LLC. Certain words cannot be used in the name of your LLC and are prohibited. This varies from state to state.
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