I want to use my Tennessee LLC for both music production and merchandise

You can use the same LLC. Just make sure your operating agreement or charter allows for both activities. Tennessee is pretty flexible.

One LLC is fine. But keep separate bookkeeping for the merch vs production income. Commingling funds is what gets people in trouble.

I've seen people run multiple revenue streams under one LLC. The key is that the LLC is the legal entity—both activities are just parts of the business. No need to overcomplicate unless you're bringing in partners or investors for one side.

Yes, separate bank accounts or at least separate ledgers. Also check your business license—some cities require a separate permit for retail sales even if you have a production license.

I run a similar setup. One LLC, two income streams. My accountant files it all under one Schedule C. Works fine.

From a liability standpoint, if someone sues over a t-shirt design, they'd sue the LLC. Same as if a client sued over a beat. The LLC protects you personally either way. But if you have a lot of merch revenue, an umbrella policy might be wise.

Umbrella policy is overkill for small merch sales. Just don't put anything dumb on a shirt.

Also, sales tax. Tennessee has sales tax on tangible goods. You'll need to register for a sales tax permit if you haven't already. That's separate from the LLC formation.

One more thing: if you ever want to bring in a partner just for the meRch side, you'd probably need a separate LLC or a partnership agreement. But for now, solo, you're fine.

Don't Forget annual report. Tennessee requires it. Easy to miss when you're busy.