PLEK DIY Playbook: Layer 0 - Business Foundation

What You'll Accomplish

By the end of this playbook, you'll have:

- A properly structured business entity (C-Corp or LLC)

- A dedicated business bank account

- Stripe payment processing set up

- Clean accounting structure for future growth

- A foundation that makes you attractive to labels, brands, and investors

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Why Business Structure Matters

The Problem with Operating as an Individual

- No Legal Protection: Your personal assets are at risk

- Tax Inefficiency: You pay higher personal tax rates

- Unprofessional Image: Labels and brands prefer working with businesses

- Messy Finances: Personal and business expenses get mixed

- Limited Growth: Harder to bring in partners or sell your catalog

The PLEK Business Foundation Advantage

- Professional Structure: Operate like a real business from day one

- Tax Benefits: Write off business expenses, equipment, travel

- Asset Protection: Separate your personal finances from business

- Scalability: Easy to add revenue streams and partners

- Exit Strategy: Structured for catalog sales or label partnerships

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Step 1: Choosing Your Business Structure

For New Artists (Under $50K Annual Revenue)

Single Member LLC

- Best For: Solo artists just starting out

- Benefits:

- Simple setup and maintenance

- Pass-through taxation (no double taxation)

- Personal liability protection

- Professional credibility

- Cost: $50-$500 depending on state

- Timeline: 1-2 weeks to set up

What You Need:

- Choose business name (your artist name + "Music LLC")

- Register with your state

- Get EIN (Employer Identification Number) from IRS

- Create operating agreement (even as single member)

For Growing Artists ($50K+ Annual Revenue)

Delaware C-Corporation

- Best For: Artists planning rapid growth or multiple revenue streams

- Benefits:

- Most attractive to investors and labels

- Ability to issue stock to partners/investors

- Better tax advantages at higher income levels

- Easier to create subsidiary LLCs

- Enhanced credibility with industry professionals

- Cost: $500-$2,000 to set up

- Timeline: 2-4 weeks to set up

What You Need:

- Delaware incorporation (even if you live elsewhere)

- Registered agent in Delaware

- Corporate bylaws and stock certificates

- EIN from IRS

- Corporate resolutions

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Step 2: Business Banking Setup

Choosing the Right Bank

Recommended Options:

- Mercury - Built for startups, excellent online banking

- Chase Business - Wide network, good for touring

- Bank of America - Strong business services

- Local Credit Union - Lower fees, personal service

Required Documents

- Articles of Incorporation/Organization

- EIN Letter from IRS

- Operating Agreement or Corporate Bylaws

- Government-issued ID

- Initial deposit ($100-$1,000 minimum)

Banking Best Practices

- Separate Everything: Never mix personal and business finances

- Get a Business Credit Card: Build business credit separate from personal

- Set Up Auto-Transfers: Move money from personal to business monthly

- Track Everything: Use accounting software from day one

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Step 3: Stripe Payment Processing

Why Stripe for Artists

- Industry Standard: What PLEK and most platforms use

- Global Reach: Accept payments worldwide

- Multiple Payment Types: Cards, Apple Pay, bank transfers

- Detailed Analytics: See exactly where money comes from

- Easy Integration: Works seamlessly with PLEK

Stripe Setup Process

1. Go to stripe.com/connect

2. Business Information:

- Use your business name and EIN

- Business type: "Entertainment/Arts"

- Estimated annual volume: Be realistic

3. Bank Account: Connect your business bank account

4. Verification: Upload business documents

5. Test Mode: Practice before going live

Stripe Account Optimization

- Complete Your Profile: Add logo, business description

- Enable All Payment Methods: Cards, digital wallets, bank payments

- Set Up Webhooks: For real-time PLEK integration

- Configure Payouts: Daily or weekly automatic transfers

--Step 4: Advanced Business Structure (For Growth)

The Multi-LLC Strategy

As your revenue grows past $100K annually, consider this structure:

Main C-Corp (Holding Company)

- Owns all other entities

- Manages overall business strategy

- Handles major contracts and partnerships

Music Publishing LLC

- Handles songwriting royalties

- Publishing deals and sync licensing

- ASCAP/BMI/SESAC registrations

Touring LLC

- Live performance income

- Merchandise sales at shows

- Touring expenses and equipment

Merchandise LLC

- Online merch sales

- Brand partnerships

- Physical product inventory

Why This Structure Works

- Clean Accounting: Each revenue stream is separate

- Tax Optimization: Different treatment for different income types

- Risk Management: Lawsuit in one area doesn't affect others

- Attractive to Labels: Shows you understand business

- Exit Flexibility: Can sell individual pieces (publishing, catalog, etc.)

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Step 5: Accounting & Financial Management

Accounting Software Setup

Recommended: QuickBooks Online

- Why: Industry standard, integrates with banks and Stripe

- Cost: $30/month for Simple Start plan

- Features: Invoicing, expense tracking, tax prep integration

Setup Steps:

1. Connect business bank account

2. Connect Stripe account

3. Set up chart of accounts for music business

4. Create expense categories (equipment, travel, marketing, etc.)

5. Set up automatic bank feeds

Financial Best Practices

- Monthly Reviews: Check all financials monthly

- Quarterly Tax Prep: Set aside 25-30% for taxes

- Annual Audit: Review structure and optimize

- Professional Help: Get a music industry accountant

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Step 6: Making Yourself Attractive to Industry

What Labels Look For

- Clean Business Structure: Proper entities and accounting

- Revenue Streams: Multiple income sources

- Professional Operations: Business bank accounts, proper contracts

- Growth Trajectory: Clear financial progression

- Asset Organization: Publishing, masters, brand properly structured

What Brands Look For

- Professional Entity: Can issue W-9s and handle 1099s

- Liability Insurance: Protects both parties

- Clear Ownership: No confusion about who owns what

- Scalable Structure: Ability to handle larger deals

Documentation to Maintain

- Corporate Records: Keep all formation documents

- Financial Statements: Monthly P&L and balance sheets

- Tax Returns: Business returns separate from personal

- Contracts: Master agreements for all business relationships

- IP Documentation: Copyright registrations, trademark filings

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Step 7: Implementation Checklist

Week 1: Business Formation

- Choose business structure (LLC or C-Corp)

- File formation documents with state

- Apply for EIN from IRS

- Draft operating agreement/bylaws

- Order corporate kit/seal (if C-Corp)

Week 2: Banking & Payments

- Open business bank account

- Apply for business credit card

- Set up Stripe account

- Test payment processing

- Configure automatic payouts

Week 3: Accounting & Systems

- Set up QuickBooks Online

- Connect bank accounts to QuickBooks

- Create expense categories

- Set up automatic transaction importing

- Create monthly review schedule

Week 4: Compliance & Protection

- Register for state sales tax (if selling merch)

- Get business license (if required)

- Purchase liability insurance

- Set up business address/registered agent

- Create document filing system

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Common Mistakes to Avoid

Don't Do This:

- Operating without structure: Staying as individual too long

- Mixing personal/business: Using personal accounts for business

- Ignoring taxes: Not setting aside money for quarterly payments

- DIY legal work: Using generic online forms for complex structures

- No insurance: Operating without liability protection

Do This Instead:

- Set up structure early: Even before significant revenue

- Keep everything separate: Different accounts, cards, everything

- Plan for taxes: Set aside 30% of all income

- Get professional help: Lawyer and accountant from the start

- Protect yourself: Insurance is cheaper than lawsuits

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Next Steps: Preparing for Layer 1

PLEK Integration Ready

With your business foundation complete, you're ready to:

- Connect your Stripe account to PLEK

- Set up business bank account for PLEK payouts

- Track all fan data and revenue through business entity

- Build your community knowing you have proper structure

Moving to Layer 1: Community Building

- Your business can now officially operate on PLEK

- All fan data belongs to your business entity

- Revenue streams will flow through proper channels

- You're positioned as a professional artist from day one