WordPlay T. Jay is often asked about beats — but not how to make them, how to sell them and run a business.

In response, T. Jay has created a quick guide to creating a beat-making business, the dos and the don’ts.

The first step, he said, it to assess whether or not you need a business. Do you have demand? Are people asking you for your beats? Are you good at beat-making? Consider the process it will be to turn your beats into a successful business.

If you answer yes to those questions, the next step is to choose what type of business you want to be.

You can be a sole proprietor or partnership, or you can be a corporation or LLC. Sole proprietor and partnership are where 99 percent of people land. You have to go to the IRS and get an EIN (Employee Identification Number), which is basically a social security number for your business, and you will pay taxes through the EIN and personal finances gained through the business. This option is for low-risk people that are not likely to get sued or have a lot of debt or liabilities. Cost is also low, just paying expenses and bills while collecting revenue.

Corporations and LLCs are treated as their own entity separate from the individual, so the EIN is not ties to the owner’s Social Security number. An LLC is a Limited Liability Corporation, so that is a bit lower-risk, but both options are geared more for high-risk situations where there could be lawsuits or debt, which the owners do not want to tie to their personal finances. Taxes are paid by the company, and they may also be higher than a sole proprietor or partnership. The costs are also higher because of taxes and fees.

Once established as a legal business federally, you have to register with a locality and state. That process differs based on location and must be researched for the proper steps.

Publishing can be a little complex, but the main thing is to put licenses with your beats, exclusive or non-exclusive.

Exclusive beats are sold to one person and there is only one owner of the rights. Non-exclusive beats belong to many people. Exclusive beats you can sell online or through collaborations, and they are usually more pricey. Non-exclusive beats are mostly sold online.

Once you’ve sold beats, you should collect PRO revenue. Non-exclusive beats should have the pay percent written in the contract and you have to tell the person uploading the song your name and information so you get paid.

You can also collect Content ID, especially for non-exclusive beats, but that should be written into the contract, as well. Same with mechanical royalties. Collect them, but make sure it’s in the exclusive and non-exclusive contracts.

To sell beats, you have a few options. You can create your own website and sell there, or you can use sites like BeatStars or AirBit.

Your own site will allow you more control, and maybe more profit, but it is more work for less traffic. Costs are the domain name and a site manager.

BeatStars and AirBit have no site management but probably less profit. Costs are $10 a month, or $20 a month for Pro. You can set your own prices and make up some of the revenue is you are competitive. T. Jay recommends using an established site first before investing in your own.

Finally, you have to market your music. Share your beats on social media and buy Facebook ads. Live stream your beat-making process and get out in the world and network with other artists. The more places your music is, the more likely it is to be heard.

For more on this topic, check out the video below.

WordPlay T. Jay is a hip-hop artist and producer from Little Rock, Ark., focused on making music for the underdog. He started his YouTube music advice channel because he wanted people to have information about the music business as he learns it, allowing them to apply tips and tricks for success.