#+title: Start a Music Production Company: Build an LLC pt3
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* Links
#+attr_html: :class links
- [[../../toc.org][TOC - Music Money Makeover]]
- [[https://www.youtube.com/watch?v=YNpqfll92Fg&list=PLL5ztIiUDdRhyY-5P84k_Vx5ODZlnEMVs&index=1][youtube video]]

* Notes
- company structure setup for the ecosystem
- you will start with one LLC and build three

** preface
- what you need to build the instrumentalist style production company
  - 3 LLCs
  - 3 EIN numbers
  - 2-3 bank accounts
  - accountant
  - corporate attorney
  - tax attorney

** ultimate company setup
this will set you up for the quarter million club

1. Operations LLC
2. Record Label / Publishing Company
3. Entertainment Company


*** operations company
- leasing beats
- beat sales
  - selling masters to record companies
- producer royalties
- extras
  - recording
  - mixing

*** record company / publishing company
- beats you sold and own
- holds ownership of master / publishing
  - record / streaming royalties
- publishing DBA (doing business as)
  - publishing royalties (all revenue is passed through to a record company)

**** Publishing DBA
- Doing Business As refers to an alternate business name under which a company operates, rather than using its legal name

- used by songwriters, composers and independent music publishers who want to register under a specific business name for publishing rights and royalty collection instead of using their personal name or their company's formal legal name

***** Key reasons for using a Publishing DBA
1. Brand identiy
   - operate under a distinct name
   - brand recognition
2. PRO Registeration (Performance Rights Organization)
   - ASCAP BMI, SESAC require publishers to register under a unique publishing entity name to collect royalties
   - many independent songwriters use a DBA to create their own publshing company under a PRO
3. Legal & Business Structure
   - allows someone to do business as teh same legal entity under a different name
   - used for sole properietorships or LLCs that need a distinct publishing identity
4. Contracts & Licensing
   - can be used to sign contracts, license music and register copyrights under a professional name

***** How to Register a Publishing DBA
1. check availability
2. file with local government
3. register with a PRO
4. open a bank account
5. copyright & licensing - use the DBA when
   - registering copyrights
   - sync licenses
     - use your music when paired with visual medium
   - sync mechanical rights
     - reproduce and distribute a song in physical or digital formats

**** Performance Rights Organization
collects and distributes performance royalties when the music is publicly performed

1. collect royalties
   - radio
   - tv
   - streaming services
   - live venues
   - bars
   - clubs
   - public spaces
2. distribute royalties
   - based on share of ownership in the song
3. issue licenses to play copyrighted music
   - radio stations
   - streaming platforms
   - restaurants
   - event venues
4. track music usage
   - radio
   - tv
   - live performances
   - digital streaming
   - background music in public places

*** entertainment company
- place to handle everything for the road up to 50k a year
  - touring
  - merchandise
  - brand endorsements
    - sponsorships