Obtain your EIN from the IRS (free, 15 minutes, immediate) and create a comprehensive Operating Agreement that protects your LLC structure — including the officer provision that protects your ownership.
📌 Learning Objectives
Apply for and receive an EIN from the IRS
Recognize when to use EIN vs. SSN
Create an Operating Agreement customized for a music business
Explain the difference between Members, Managers, and Officers
🔢 What's an EIN?
Your EIN is your business's Social Security Number. Free. Takes about 15 minutes at IRS.gov, and it's issued immediately.
📝 Part A: Get Your EIN
Go to IRS.gov → "Apply for an Employer ID Number (EIN)" → Begin Application (free — never pay a third-party site)
Select entity type: Limited Liability Company, your state; single-member LLCs are identified automatically
Enter LLC information — legal name exactly as on your Certificate of Organization; physical AND mailing address = your virtual business address (important for the bank account!)
Responsible party = YOU (managing member); SSN required — this is not public information
Business questions — activity: music publishing / record production; start date: LLC formation date; employees: 0; reason: "Banking purposes"
Submit — EIN issued immediately. Save the confirmation letter (CP 575) as PDF in multiple places
You need your EIN to: open business bank accounts · register with PROs as a PUBLISHER · register with mechanical agencies · receive royalty payments properly · issue and receive W-9s.
📝 Part B: Create Your Operating Agreement
Choose a tool — Rocket Lawyer ($40-50 or $10/mo), LawDepot ($20-40), or free with Northwest Registered Agent. Do NOT use a registered agent's generic boilerplate — customize for music
Include the essential components:
LLC basics — name, formation date, state, address, purpose: "Music publishing, record production, and distribution"
Members — you, 100% ownership (single-member)
Management — Manager-Managed, you named as manager with full authority
Profit distribution schedule and retained earnings policy
OFFICERS provision (critical for music!) — allows the LLC to appoint officers (President, VP, Secretary, Treasurer)
Dissolution terms — specify copyrights return to members
Sign as "Managing Member" and date; store the original safely with digital copies
👥 Members vs. Managers vs. Officers — The Critical Distinction
Position
Rights
Who Should Be This?
Member
Owns a percentage · receives profit distributions · voting rights · shares assets on dissolution
You (the owner) · true business partners · investors
Manager
Runs daily operations · signs contracts · makes business decisions
You, in most cases
Officer
Specific duties · NO ownership · NO profit share · can be hired/fired
Artist manager · business manager · A&R director — anyone you pay to work
💡 Pro Tip
By making your artist manager an OFFICER instead of a MEMBER, you keep 100% ownership of your label while giving them authority to work. They get paid for their services — but they don't own part of your business.