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Week 7: Build Your Record Label (DBA) & Master the W-9

⏱️ Block 2 · Entities · ~2 hours + state processing

🎯 Week Goal

Add your record label as a DBA under your Publishing LLC, then master the IRS Form W-9 — the tax form every royalty account for the rest of this course will ask for.

📌 Learning Objectives

  • Explain why a DBA (not a second LLC) is the right starting label structure
  • File a Fictitious Name / DBA registration with your state
  • Explain "disregarded entity" status and complete a W-9 correctly box-by-box
  • Avoid the common W-9 mistakes that trigger IRS red flags

🏢 Alphabet & Google

Your LLC is the parent company. Your DBA is a division of that company — like how Alphabet Inc. owns Google. Same company, different operating names.

⚖️ Part A: Why a DBA — Not a Second LLC — Right Now

LLC + DBA (Start Here)Two Separate LLCs (Upgrade Later)
One annual feeTwo annual fees
Same EINTwo EINs
Separate bank account (still!)Full legal separation
Legally operate as a labelRequired when signing other artists
Upgrade when revenue justifiesDo this when ready to scale
  1. Confirm your label name from Week 3 — it must be DIFFERENT from your publishing company name
  2. Go to your Secretary of State website → "Fictitious Name Registration" or "DBA Registration"
  3. File under your existing Publishing LLC — you'll need your LLC name and document number (Week 5), the label name, your virtual address, and the filing fee ($10-50 most states)
  4. Save the DBA certificate and record it in your Master Business Document

🧠 Part B: Understanding "Disregarded Entity"

For LIABILITY purposes, your LLC is a separate entity — it protects your personal assets. For TAX purposes, the IRS "disregards" the LLC and treats the income as yours personally. Best of both worlds: liability protection WITHOUT corporate tax complexity. LLC earns money → flows to you → reported on Schedule C of your 1040. No separate business tax return.

📝 How to Complete Form W-9 (Single-Member LLC)

BoxWhat to EnterWhy
Box 1: NameYOUR PERSONAL NAME (not the LLC)Must match the name on your tax return
Box 2: Business nameYOUR LLC NAMEShows payments should be made to your LLC
Box 3: Tax classification✅ "Individual/sole proprietor or single-member LLC"
❌ NOT the "LLC" box (that's multi-member)
Indicates disregarded entity status
Boxes 5-6: AddressYour VIRTUAL business addressKeeps home address private
Part I: TINYour SSN · ❌ leave EIN blankFor taxes, you and the LLC are one person
Part IISign and dateUnsigned W-9s are rejected

You'll need a W-9 for: distributors (DistroKid, TuneCore, CD Baby) · SoundExchange (both sides) · PROs · The MLC & Harry Fox · bank accounts · any payment over $600.

❌ Common W-9 Mistakes to Avoid

  • Using EIN instead of SSN — causes 1099 mismatches; can trigger 24% backup withholding
  • Only the LLC name in Box 1 — the IRS won't know whose tax return to match
  • Checking the "LLC" box in Box 3 — that's only for multi-member LLCs taxed as partnerships
  • Omitting the LLC from Box 2 — payments should come to the LLC name for corporate veil protection
  • Not signing Part II — invalid form

💡 W-9 Management Pro Tips

  • Create a master template — the blank IRS W-9 is attached to your Master Business Document (Attachment A) and included with this workbook; complete one copy correctly, save as PDF, reuse for every account this semester
  • Security: never email a W-9 unencrypted (it contains your SSN); keep a log of who has it
  • Name files clearly: "W9_2026_SoundExchange.pdf"

✍️ DBA & W-9 Worksheet

✅ Week 7 Checklist

Check off each item as you complete it.

  • Label DBA filed under my Publishing LLC (different name than publishing)
  • DBA certificate saved and recorded in Master Business Document
  • I can explain the LLC-parent / DBA-division structure and the upgrade trigger
  • Master W-9 template completed correctly (personal name Box 1, LLC Box 2, SSN)
  • W-9 saved securely for reuse all semester
  • I can explain disregarded entity status in one sentence
📎 Submit: DBA certificate + W-9 template with SSN redacted to XXX-XX-1234.

🖨️ Print My Week 7 Report (for Canvas upload)

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