For many musicians, signing a record deal is a dream come true. However, there’s a hidden reality that many artists don’t realize until it’s too late—record labels do not provide healthcare or other essential benefits. Musicians are often classified as independent contractors, meaning they are responsible for securing their own health insurance, retirement plans, and other protections.

This lack of support can leave musicians vulnerable, especially given the health risks associated with the industry, from physical strain on tours to mental health challenges. But there’s a solution: setting up a loan-out company. By forming a business entity, musicians can gain access to healthcare coverage, tax deductions, asset protection, and retirement planning—essentially creating their own safety net.

In this article, we’ll explore how loan-out companies work, why they’re a game-changer for artists, and how you can take control of your financial future before signing that record deal. Take charge of your career—because no one else will do it for you.