This seems like an obvious question before to start which simply means that it has to be owned by the person who either or not has any experience, talent and resources to own one’s own record label. Even though we avoid the initial headache of administration tasks required to start your own company. The record label business includes activities like composing, selling records either you have past experience or just a newbie in this business area. As we know that any thing we do, has some typical pros & cons. Hopefully the pros of “how to start your own record label” will melt the severity of the cons.
It helps you to establish yourself & express your identity, creativity. Also it makes you look a professional in the area, projects you like the inside man of the music industry.
If you as an owner decide that to make records or sell records of other music composers, those help to boost your brand label of your record label. This in turn helps you to sustain when in the market if there is no business growth happening.
As a record label is separate business entity, equipment like recorders, boosters, amplifiers, computers can be hired, also have a company account in the banks, thereby enabling you to accept payments through credit cards for your records.
When you sell your recordings, you accept the payments professionally instead of accepting them as silly billy(musician).It also proves that your income is through recording activities, thus allowing you to pay less taxes.
The task of “How to start your own record label ?” was confronted by many musicians, artists who had the only purpose of releasing their own music. Small beginnings can be made by only putting your own music on your own record label, later you can expand it by putting others music on your record label.
It will be in your interest eventually as not to allow money be the criteria for starting your own record label.
Selecting a name for your record label can be a fun process, even it can be time consuming. It can take time because the name must reflect your personality, or the kind of music you will compose. One should avoid used names, but look out for rather creative names like Morning Star Records, Corroded Studios, Decade Music etc. You will not be allowed to float a company with a name that has already taken by another one. It is the most enjoyable process in the journey in the task : How to start your own record label.
Choose a form of the business for your label : there are three basic forms of business for your record label.
1. form a corporation, which makes it a separate legal entity.
2. Partnership, which means that two or more partners share the risks, profits.
3. Sole ownership, by which all the funding, administration,profits, losses are all yours.
Obtain a business license for your record label : Usually the business license for the record label has to be obtained in person. There is a small fee for obtaining the same, the most critical of all the license issuers will ask you from where you wish to operate your business. Make sure where you want to operate & you are in control of your business.
Obtain a Tax identification number is not necessary if you are the sole owner, or not unless you hire employees. Record labels in partnerships require this. This can be used when filing forms for the local & central governments when required.
If you wish to sell your records directly to the general public, you will need a retail license, a small fee is also required for this. Then you can file sales tax each month.