Having a hard time finding info for starting music business.

Hello. Me and my friend are starting a record label from the ground up. Right now we have me producing and record engineer and him MCing. I am having a hard time finding what to do as far as business licenses for it.

We are going to be running the record label along with a recording studio and clothing line. I was wondering if we can have all of those under one business license or if I need to do something separate for each one?

And as far as taxes go. We were about to buy a new macbook pro and pro tools and thought about opening the business first to write it off in taxes. I was wondering how that works, like I think it deducts by a percentage of the taxes your business pays at the end of the year or something? If I am right, I was wondering what we would be paying taxes in as a business. Like, does it just write off some of the money you would be paying the government off of profits or what?

Thanks a lot. I am not real descriptive but I have no idea about any of this stuff! I hope someone understands what I said lol

MarkL wrote:We are going to be running the record label along with a recording studio and clothing line. I was wondering if we can have all of those under one business license or if I need to do something separate for each one?

Stones throw is a great example of that. So the answer is No.

MarkL wrote:. I am having a hard time finding what to do as far as business licenses for it.

If possible the find a lawyer who specializes in entertainment, to answer all your questions. From what I remember you can go to your city hall and pay a fee to have copyrights and all that stuff for your business. I seen a couple youtube vids that explain how to do it.



As far as the taxes question, I have no idea so I can't help you there. All I know that is that the IRS is a ****.

*I'm in no way an expert, but I'll share what I learned with you*

You picked a time to start a record business when most are failing or struggling to exist. It can be done, but your going to have to find artists and producers that understand the current situation of the music business and can erase the expectations they viewed from Lil Wayne throwing around money in music videos! They have to know that promotion (in your beginning steps) is more important than album sales.
I ran my own business for a few years, but the money was getting funny and the artists/producers were expecting ish like my name was P-Diddy. Start slow, and build. Learn how to promote "effectively" for cheap (learn current marketing ideas.) YOU WILL NOT BE ABLE TO DO EVERYTHING BY YOURSELF! Get your audio/graphic/web and video tech school grads together. If anyone should get paid, its these guys. If your audience has nothing to see or hear, you got nothing! Get local lists of venues that welcome your genre of music and learn how to book shows. As far as Artists go, pick them wisely. Broke talented people with big dreams and attitudes are VERY hard to work with. Do they have big heads with no online followers? You might love their music, but they probably love the idea of getting paid. If there is no money, there is problems. You have to find people that understand that nothing from nothing leaves nothing. The first dollar made can't be split. Their first few releases might not come with a check!

* There is a book called "Here Come the Regulars" by Ian Anderson. Read it.
* Check out "Krush Groove" if you've never seen it before.
* Learn some History on Motown Music. Very inspirational, especially when you learn that Berry Gordy started the label with a loan for less than $800.00

ps. I mentioned that you can't do it by yourself, but don't misinterpret that to mean that you need a business partner. If you do have a partner, he/she must share the same enthusiasm you have right now for a few years! Most new business start slow, and most people are not enthusiastic about continually not making money.
...and ohh yea, GET A REPUTABLE MUSIC ATTORNEY, because these music industry wannabees is SHADY!

Good luck!

To establish yourself as a business you have to go to city hall and register your business entity. This allows you to operate under whatever name you choose for your label. As for having a clothing company to be associated with it, if you want to be "toodope" records and have "toodope" clothing than its understood that your business will sell merchandise so you wont need a seperate business license. But if you want to name the clothing line seperate from the label, you will need two licenses. But beyond that; contracts, publishing rights and so forth, you will need to begin researching lawyers. You do not need one just to establish your business entity.