| When releasing your own music Online or on CD | | | | There are three forms of business you need to |
| means that, you pretty much become your own | | | | worry about right now. |
| record label, although you did not set up a | | | | 1.Sole proprietorship - single owner situation - profits, |
| company yet officially. The business of a record label | | | | losses, risks and liabilities are all the |
| is to sell music whatever genre it may be. If you | | | | responsibility of you, the owner. |
| released music on your own or plan to then you | | | | 2.Partnership - two or more partners share the risks |
| already are performing some of the duties of a record | | | | and rewards. |
| label . There are a few simple steps you need to take | | | | 3.corporation - A separate legal entity, which limits |
| to make your record label an official business. Here is | | | | the owners' (known as stockholders) liability and risk to |
| the advantages: | | | | the property and assets of the corporation. |
| - It looks more professional when you have a | | | | A sole proprietorship is the most simplest and straight |
| company name you can create a brand and identity | | | | forward option you have to choose from. Your profits |
| with. | | | | or losses are reported on IRS Schedule C,it gets |
| - When you sell your music,checks | | | | attached to your personal income tax return at the |
| made out to the label, instead of your regular name, | | | | end of each year. |
| you would be able to show your income is coming | | | | Partnerships are started by two or more people. make |
| from your music. | | | | sure you write up an agreement, that states each |
| - You can sign artist and make money off of there | | | | partner's contributions and responsibilities, how all the |
| projects | | | | profits and losses are to be divided, also |
| - You can lease computers, recording equipment, open | | | | how the partnership can be dissolved. |
| a commercial bank account, and accept credit | | | | To set up a corporation, most people seek the advise |
| cards for your music. | | | | of an accountant or lawyer.That is one bill you don't |
| Start small and put out your own records on your | | | | need starting out so you can do it your self with the |
| label. As you gain experience with the business,you | | | | help of a site called They handle all legal matters for a |
| may want to expand and sign other artist. | | | | way lower price than a lawyer.Easiest thing to do is |
| There are great perks for doing this; a label with | | | | start out as a sole proprietorship or |
| multiple artist has a good chance at getting distribution | | | | partnership and incorporate later on down the line. |
| deals because when one artist is not selling well, | | | | GET A BUSINESS LICENSE |
| income from other artists will keep the label alive and | | | | You can get a business license in person by going to |
| well..It does not take a whole lot of money to get you | | | | the city or county business license office, There is a |
| record label started on the business side.The hard part | | | | fee to pay for obtaining a business license.They will |
| is making people believe in your music and loving it | | | | ask you is where you plan to conduct business. If |
| enough to buy it.so heeeeeeeere we go. | | | | you put your home address down as the business |
| CHOOSE A CATCHY NAME | | | | address they will have you speak with someone in the |
| Choosing a name can be the fun part.You need to | | | | zoning office. |
| choose something that represents the label.You need | | | | GET A TAX ID NUMBER |
| something that you can turn into a brand,something | | | | If you are going to hire employees you will need to |
| that people can identify when they first hear or see | | | | get a tax id number. This can be done online by going |
| the name of your label. | | | | to the IRS website.It's free too. |
| FILE FOR A FICTITIOUS NAME | | | | NOW YOU OWN A RECORD LABEL! |
| All businesses have to file for a fictitious name | | | | Nothing to it!!! |
| (known as a D.B.A., Doing Business As) license with | | | | These days you can get most if not all this whole |
| the secretary of state or registrar of deeds in your | | | | process online.Now you focus on making great music |
| home state, giving you the right to do | | | | to sell.The work is not done here.You will need to learn |
| business under that name. A search must be | | | | how to market,promote, and sell your music to the |
| performed to make sure that the name is not in use | | | | masses.you will need a Record Label Music Business |
| by another business in the state.You don't need a | | | | Plan! |
| lawyer to do this. | | | | Draw up the plan and get to it.You don't move your |
| CHOOSE A FORM OF BUSINESS FOR YOUR | | | | feet,then you don't eat. |
| LABEL | | | | |