Open TWO dedicated business bank accounts — one for your publishing division and one for your label division — and set up your music distributor. Clean separation from day one.
📌 Learning Objectives
Explain why separate business accounts are essential (and the danger of co-mingling)
Open business accounts using your EIN, signing as Managing Member
Choose and set up a music distributor under your LLC
Distinguish what a distributor does vs. what royalty collectors do
💧 The Reservoir
Your business bank accounts are the reservoirs for your music money. Every royalty stream you set up in Weeks 9-13 (SoundExchange, PRO, MLC, etc.) is a pipe that flows into one of these two reservoirs. Build the reservoirs FIRST — otherwise the water has nowhere to go.
📄 Articles of Organization (Week 5) and DBA certificate (Week 7)
🔢 EIN confirmation letter (Week 6)
🏢 Business address & phone (Week 4)
📊 NAICS code (Week 4)
🪘 Photo ID and minimum deposit (usually $100+)
📜 Operating Agreement on hand for reference
📝 Part A: Open the Accounts
Choose your bank — regional/medium-sized banks are often more helpful for new businesses; compare fees, minimums, and ask about same-day debit cards
Open a business checking account for the LLC (publishing) and a second account under the DBA (label)
Sign as "Managing Member" — never just your name; if the signature line doesn't say Managing Member, ask them to correct it
Use your EIN (not SSN) to open the accounts
Collect your banking tools — debit cards, temporary checks, and the direct deposit authorization form (you'll need it for every royalty account!)
⚠️ If Your Account Gets Denied
Most common cause: the registered agent's address was used as the principal place of business instead of YOUR virtual address. Second cause: you're not listed as managing member on the filing — bring your Operating Agreement showing you are.
📝 Part B: Set Up Your Distributor
Choose a distributor — DistroKid, TuneCore, CD Baby, UnitedMasters, Amuse; compare yearly vs. per-release fees and percentage taken
Sign up under your LLC name and pay with your LABEL debit card
Know what a distributor does — and doesn't:
✅ Gets your music ONTO Spotify, Apple Music, etc. and collects basic streaming (master) royalties
❌ Does NOT collect performance, mechanical, or SoundExchange royalties — that's Weeks 10-12!
📝 Part C: "Cleaning House"
Switch every service you paid for personally over to the correct business account:
Virtual mailbox payment → business card
Business phone payment → business card
Business email payment → business card
Domain ownership transferred to LLC (if applicable)