Every music business influencer on the internet tells independent artists they need an LLC to be a "real" publisher. It's not true, and it's costing artists money and time they don't need to spend.
The short answer
You do not need an LLC to collect a single cent of publishing income. PROs like ASCAP and BMI let you affiliate as a publisher using your own name and SSN as a sole proprietor. That is a legal business structure. It costs $0. It requires no lawyer.
You can register the master with SoundExchange, the composition with the MLC, and the publisher side with your PRO, all as an individual.
What an LLC actually gives you
An LLC is a business upgrade, not a royalty unlock. Here is what it actually does for you:
- Liability protection. If someone sues over a song, your personal assets (house, savings) are separated from the business.
- A business bank account. Keeps your music income separate from your groceries.
- A clean entity to sign deals into. Publishing admin deals, sync licenses, catalog sales. Signing them into an LLC keeps your personal name off the paper.
- An identity that reads like a label. "Chad Focus Music Publishing, LLC" reads differently than "Chad Focus" on a contract.
- Tax flexibility. Once you make real money, you can elect S-corp taxation and pay yourself a salary, which can save on self-employment tax.
When to actually form one
Wait until at least one of these is true:
- You are making enough that self-employment tax hurts (roughly $40,000+ per year in music income).
- You are about to sign a real deal (admin, sync licensing, catalog sale, sample clearance).
- You want a separate bank account and separate books for the music business.
- You need liability protection because you are doing live events, running a label, or otherwise creating exposure.
If none of these apply, keep the money in your pocket and affiliate as a sole proprietor. You can always upgrade to an LLC later.
The order that actually gets you paid
- Free: Affiliate as writer + publisher with your PRO. Register with the MLC. Register with SoundExchange. See our PRO publisher guide.
- Free: Distribute your music through DistroKid, TuneCore, CD Baby, or similar so your masters earn on DSPs.
- Optional, later: Form an LLC when the money or the deals make it worth the paperwork.
Do not let the "you need an LLC" myth stop you from collecting royalties this month. The IRS considers you a business the second you earn a dollar. The paperwork can wait.
At 200% (100% master + 100% composition) you keep every dollar from every royalty stream: SoundExchange, DSPs, AFM & SAG-AFTRA, The MLC, PRO performance, and sync.
One royalty destination per row
Register with a PRO while you own the master.
Owning the master collects one side. Registering the composition with a PRO collects the other. Right now you're set to collect 100% on the master side and 100% on the composition side, for a combined 200% claim on every play, stream, and spin.
We never touch your money. Royalty Lock registers on your own accounts.