Prerequisites for Earning Revenue from Your Music

In today’s music industry, talent is only half the equation. To consistently earn revenue from your music, you need the right business and administrative infrastructure in place. Below is a breakdown of essential prerequisites every serious artist, producer, or label should have locked in.

Form an LLC

Establishing a Limited Liability Company (LLC) is foundational. It separates your personal assets from your business operations and positions you to handle contracts, receive payments, and structure your taxes professionally. Many distributors, sync agents, and partners will expect you to have a legal entity—an LLC is often the most flexible and accessible option for artists.

Get an EIN

An Employer Identification Number (EIN) is the IRS’s business ID for your LLC. It’s required to open a business bank account, issue 1099s, or hire others. It also helps ensure you aren’t operating under your SSN, which minimizes identity risk and solidifies your professional standing when working with distributors, PROs, or licensing agencies.

A Performance Rights Organization (PRO)—like ASCAP, BMI, or SOCAN—collects performance royalties on your behalf when your music is played on radio, TV, in venues, or streamed digitally. Without PRO registration, you’re missing out on a core revenue stream. If you’re a songwriter and a publisher, you’ll need to set up both accounts (writer and publisher) to collect 100% of the royalties due.

Obtain an IPI Number

Your IPI (Interested Parties Information) Number is issued by your PRO and uniquely identifies you in the global music publishing system. It’s required when registering works and ensures your royalties are properly routed. If you’re collaborating internationally or registering with additional societies (like MLC or CISAC members), your IPI is the connective tissue.

The Mechanical Licensing Collective (MLC) administers mechanical royalties for U.S. digital streaming services like Spotify, Apple Music, and Amazon. If you’re a self-published songwriter or independent publisher, you must register directly with the MLC to collect your share of digital mechanicals—PROs don’t handle this. It’s free, but critical.

Set Up with HFA

Harry Fox Agency (HFA) manages mechanical licensing for physical and digital formats, and is a key administrator for platforms like TikTok and Peloton via its Slingshot portal. Even though MLC now covers a portion of digital mechanicals, HFA is still relevant for licensing, royalty collection, and ensuring your songs are cleared for use across emerging platforms.

File with the eCO

To protect your work, you should formally register your compositions with the U.S. Copyright Office using the eCO (Electronic Copyright Office) system. While a work is automatically protected upon creation, official registration is what gives you legal leverage—especially in court, or when negotiating sync and licensing deals.

Final Thought

If you’re serious about monetizing your music, think like a business. These seven steps aren’t just red tape—they’re the infrastructure behind every professional artist earning consistent revenue. Don’t leave money on the table. Build your foundation.

Download the Prerequisites Checklist to ensure you'll be earning everything from your music!