Starting a Record Label Business
Record label means a record brand name company name such as "Sony". It is important to create a brand and create rapport with customers that buy under that brand various musicians' music. The secret to success, however, is in the business part of the record label. In other words you need to know what you are doing so as not to go out of business.
There are three major types of business entities.
Which one do you want? A sole proprietorship? partnership? corporation? Get an occupational business license and tax id numbers, such as a seller's permit, and a federal tax id number. You may also need a ficititious business name and a state employer tax ID if you have employees. In addition, if yo decide to have partners, you will need to prepare and execute a partnership agreement.
LLC or corporation is a better choice than a dba because a dba does not protect your personal assets, but because the matter is legal, and tax related, an LLC and Corporation are both corporate entities that provide legal and financial protections as well as tax benefits..
In short, the LLC is better because it is more flexible to run as far as paperwork is concerned.. any more info than that will require a CPA or Attorney. Generally, forming an LLC is better than Incorporating your business. However, you cannot go wrong with either an LLC or Corporation entity because both provide a real cheap business insurance and insurance against creditors, personal civil and tax liability protections.
BUSINESS NAME
The business name for your record label must be registered either by an assumed business name, an LLC or corporation. Find a few names: 10-20 and see what name works best.
Name availability: You will need to perform a nationwide business name availablitly check and make sure you register a business domain with the record label name.
Logo: You can design your own logo by downloading a program from the internet but you can also get someone to do it for you.
Here's the answer to that question: First of all, it is recommended that you form a corporate entity such as an LLC or Corporation. Form an LLC because your use of workers makes you an employer and thus subject to federal and state unemployment and employment taxes as well as Medicare, and social security taxes. By the way, your employers may sue you for several reasons including sexual harassment and discrimination. Hence, your need to file an LLC to protect you company and yourself.
First, write a business plan: For this type of business, you definitely need a record label business plan because no one knows when you are going to start making any money to even survive. It may take months.
Second, get any equipment necessary for the record label business such as computers and sound equipment.
Third, research to see who you going to sign up with your company. Who are the prospects?
Licenses and business legal forms.
LOCATION
A business location is better than a home office studio but if money does not permit a commercial location, by all means, start from home.
Type of music: Genre.
You need to concentrate in one aspect of the market if you want to be successful. Eventually, you will be able to expand, but to make your label mark, start with a niche market. To do that hook up with DJs, journalists, record shops, local promoters, studio owners, mucic shops etc. You really need to research the music industry if you want to be successful.
Once you do that, you will need to find your bands and musicians that want to sign up with you. You will need to record a hit or use one they already have and promote it. Look for bands that the big guys don't care for or they don't understand. So then, you will need to convince them to sign up with you with a legal contract. You will need an entertainment lawyer for that. You may want a clause in the contract that will bind the band to give you all the earnings in the beginning up to the amount that you invested to get them to sell the music. The you can start splitting the money. After they sign up, set up your studio and get your music manager to create the hit. The start promoting it.
With that in mind, you are required to obtain a federal and state employment tax identification number, also called a fed EIN, and state ein because you will hire emploees. In addition, you need to get and pay business tax. Business tax is a flat tax you pay usually per year / annually and it sometimes called business occupational tax or a business license. Furthermore, your use of a trade name makes subject to trade name registration if you get the llc and the trade name is different than the llc name.
Here online is where you can get your documents. Form an LLC and you will be separated from being liable for personal civil liability as well as help you avoid business debt related lawsuit against you and your personal assets for debts you obtained for the business and have signed as an officer of the corporation or an LLC.
In short, get an LLC limited liability company, get a federal tax id and a state tax id employer number, and register your business with a business license and you will be ready to start your business.
Places to promote the music you record.
Get a catalog number and a universal product code and sell the music to distributors for half price of what the music sells and you will receive the money every 2 to 3 months..
Start by getting the business licenses and tax IDs online here now.
You need to get a dba if you trading with a different business name because that is the law. A trade name is called different other terms in the USA, but most commonly it is called a DBA, fictitious business name or assumed business name. Is short, you need to register your trade business name at the state clerk, county clerk or city clerk. Since you are getting a federal tax id number use it instead of you social security number to open a bank account. Also, note that forming an LLC or incorporating will shield your unintentional personal business related actions.
An LLC filings starts at $199 as of 12/16/09 but prices may change without notice.