TUT-04
Banking & Financial Rails•30 Minutes
Beginner
The Musician's Cash-Flow & Business Banking System
How to Set Up Relay Sub-Accounts & The 4-Pot 'Profit First' Framework for Independent Artists
Official Partner Portal
Zero Maintenance Fees • Zero Minimums • Up to 20 Sub-Checking Accounts
Why This Step Matters
Commingling grocery money with merch revenue leads to tax penalties and empty tour reserves. The 4-pot system guarantees taxes are always paid and the band always turns a profit.
System Architecture & Flow
[Stripe / Shopify / DistroKid / Gig Payouts]
│
▼
┌──────────────────────────────────────────────┐
│ Pot 1: Operating / Master Income │
└──────────────────────┬───────────────────────┘
│ (Bi-Weekly Sweep)
┌──────────────────────────┼──────────────────────────┐
▼ (25%) ▼ (35%) ▼ (40%)
┌─────────────────┐ ┌─────────────────┐ ┌─────────────────┐
│ Pot 2: Tax Vault│ │ Pot 3: Merch Ops│ │ Pot 4: Profit │
│ (IRS Reserves) │ │ (Printify/Gear) │ │ (Member Payouts)│
└─────────────────┘ └─────────────────┘ └─────────────────┘
Required Prerequisites Before Starting
- Dedicated Band Email
- Government Photo ID
- SSN (Sole Proprietorship) or EIN + Articles (LLC)
Step-by-Step Action Plan
1
Open Your Relay Business Account
- •Go to https://relayfi.com and click Get Started.
- •Register using your dedicated band business email.
- •Select Sole Proprietorship (fastest with SSN) or LLC (with EIN).
- •Submit ID verification online (clears within 24-48 hours).
2
Create the 4 Sub-Checking Accounts
- •In Relay, click Accounts -> Add Checking Account.
- •Create Account 01: '[Band] - Master Income' (Inflow gateway).
- •Create Account 02: '[Band] - Tax Reserve' (Allocate 25%).
- •Create Account 03: '[Band] - Merch & Tour Ops' (Allocate 35%).
- •Create Account 04: '[Band] - Profit & Member Pay' (Allocate 40%).
3
Issue Virtual Fulfillment & Tour Debit Cards
- •Go to Cards -> New Card -> Virtual Card.
- •Create Card: 'Printify Auto-Fulfillment' tied specifically to Account 03 (Merch Ops).
- •Create Physical/Virtual Card: 'Tour & Gear Gas Card' with daily spending caps.
4
Route Inflow Streams to Account 01
- •Update DistroKid payout direct deposit to Relay Account 01.
- •Update Shopify / Stripe payout settings to Relay Account 01.
- •Connect Venmo/CashApp for live gig merchandise to Relay Account 01.
5
Execute the 1st & 15th Bi-Weekly Cash Sweep
- •On the 1st and 15th of each month, review total balance in Account 01.
- •Transfer 25% to Tax Vault, 35% to Merch Ops, and 40% to Profit Pot.
- •Disburse Profit Pot directly to band members or personal checking.
Common Beginner Traps to Avoid
- ✕Spending gross revenue without allocating 25% for federal/state self-employment taxes.
- ✕Borrowing money from the Tax Vault for gear or plugins.
- ✕Waiting to form an expensive LLC before separating business banking.
Verification Checklist
- ✓Relay business account verified and active.
- ✓4 distinct sub-checking accounts configured with custom labels.
- ✓Virtual debit card issued and connected to Printify billing.
- ✓DistroKid and Shopify payouts routed to Master Income Pot.
- ✓Recurring 1st & 15th calendar sweep alert scheduled.