where would i start registering my record label as a legit

business?

im also curious about this.

good question....i think its entrapreneur related..kinda like starting a small business. you have to gather all the documents, lawyers, contracts, etc etc that you need just like if you were opening a restarant or something. if you want a loan that is. i do know that soundscan is the 'official' document for all record labels, so if youre not on soundscan, youre not really official yet. soundscan costs something like 10 grand to apply for. or so my man Chris Craft of shamanwork records has said...i cant remember the exact details but it was something like that. but if you are trying to do some shit like that, youre gonna need lawyers, the whole works written up and contracted out.

FLUENT wrote: i do know that soundscan is the 'official' document for all record labels, so if youre not on soundscan, youre not really official yet. soundscan costs something like 10 grand to apply for. or so my man Chris Craft of shamanwork records has said...i cant remember the exact details but it was something like that. but if you are trying to do some **** like that, youre gonna need lawyers, the whole works written up and contracted out.

Here is the site for Soundscan: http://www.soundscan.com/

First thing you need to do is determine what type of business you want to be, I recommend an LLC. Stands for Limited Liability Corporation. The laws may change on these is why skeptics would say otherwise, this is a fairly new entity, but you can always go S Corporation or C Corporation and be INC. But LLC is a lot easier and requires less paperwork and filings and you are not required by law for board meetings. (100$-150) depends on state.

Second: Register your business name as DBA with your local courthouse, very inexpensive like 10-14$(but only protects you in your state). Will need to renew each year (business license). If you want national protection: contact the Federal trademark office and it's like 500 to file a trademark, unless your name is really catchy and hot , I would worry about that.

Third: Establish a business checking account with a bank, they will need to see proof that you are a business, so you will need to do step TWO first and then put a small ad in the paper and bring that AD when opening your account. NEVER NEVER sign anything as YOURNAME exclusively, always sign YOURNAME, CEO of Whatever Business name LLC or INC etc. Oh, and you can setup your TIN as your SSN# which is easier to remember for filing taxes.

Now you are a protected legitimate business with Limited Liability and now you can have checks sent to your business and you can write checks to staff as well via your BUSINESS CHECKING ACCOUNT. And you will not be the sole proprietor if damages occur.



So for about 100$ and a little time, you will be a registered Label. I strongly recommend writing a small business plan with assets and what you expect to do and produce. Always forecast as LOW as possible and you can actually write off the loss on your tax returns. Which could in turn be beneficial to you at the end of the tax year. Govt. could actually give you money!

sparq wrote:

FLUENT wrote: i do know that soundscan is the 'official' document for all record labels, so if youre not on soundscan, youre not really official yet. soundscan costs something like 10 grand to apply for. or so my man Chris Craft of shamanwork records has said...i cant remember the exact details but it was something like that. but if you are trying to do some **** like that, youre gonna need lawyers, the whole works written up and contracted out.

Here is the site for Soundscan: http://www.soundscan.com/

Is free to register, but to monitor your spins can be like a grand a week, for access. If you know someone with access, they can look you up for free. But I would worry about soundscan unless I was really HEAVY, like Mike Jones, Paul Wall, before Lil Flip got signed heavy.

FLUENT wrote:good question....i think its entrapreneur related..kinda like starting a small business. you have to gather all the documents, lawyers, contracts, etc etc that you need just like if you were opening a restarant or something. if you want a loan that is. i do know that soundscan is the 'official' document for all record labels, so if youre not on soundscan, youre not really official yet. soundscan costs something like 10 grand to apply for. or so my man Chris Craft of shamanwork records has said...i cant remember the exact details but it was something like that. but if you are trying to do some **** like that, youre gonna need lawyers, the whole works written up and contracted out.

You don't need a lawyer, you can do all of this on your own. Pick up the book: Starting your own corporation from the Rich Dad, Poor Dad series. 17$ Lot cheaper than a lawyer.

what bboutit said...go with an llc.

all you need is a business license from your city/county to be a legitimate label. it'll cost you a few hun at most. you go to your city hall, file the paperwork, pay the fees, then most cities/counties make you place an ad in a local paper announcing your business. but...if you're serious about selling beats and all that, you need to look into publishing also. that means you got to ante up to ascap or bmi. soundscan is pointless unless you're moving big units and need to be charted. if your label grows, then soundscan becomes important, but you don't need it at first. realistically, you can make it all happen for under around a $1,000 or less.

great info

Upping this!

Damn bboutit,good info man.

hmmm, i already got an LLC since i am co-owner of a music store, i guess i should sign some of the local cats up and master and manufacture myself..
it don't cost me anything but studio time, i already get jewel cases ans all that other stuff wholesale...damnit, im gonna start a lable...watch out everybody

telepathy51 wrote:hmmm, i already got an LLC since i am co-owner of a music store, i guess i should sign some of the local cats up and master and manufacture myself..
it don't cost me anything but studio time, i already get jewel cases ans all that other stuff wholesale...damnit, im gonna start a lable...watch out everybody

Good Luck.

but your music store llc is not a publishing company.

its a different type of business ie you need a new LLC or s-corp



ps dont snooze on incorporation it has added benefits you may not get with an LLC.

my .02

telepathy51 wrote:hmmm, i already got an LLC since i am co-owner of a music store, i guess i should sign some of the local cats up and master and manufacture myself..
it don't cost me anything but studio time, i already get jewel cases ans all that other stuff wholesale...damnit, im gonna start a lable...watch out everybody

Separate all of your entities; it's easier to show losses that way. So, said company you own sells CD covers to other company you own, then other company you own buys CD's and they are printed from another, then your label (separate entity) could report a loss from the purchasing of CD's cost to manufacture and promotion. If everything is tied up into one entity then you have a greater chance to loss more money versus having everything separated. You can show losses better that way, I would rather register each entity and keep paper work for each than to loss more under one umbrella.

The key is to operate as CEO of each company and not sole proprietor, don't sign your name on anything unless it accompanies

Example: Brian Bridges, CEO of Entertainment LLC. Never sign your name without title.


Each company needs to be registered separate with a checking account for EACH one, not the same one and NOT your own personal. They need separate TINS.

Think about it, if your label is being sued and the music store is all in the same package, then you can possibly risk lossing your store and assets. Also your partner could be liable for your mishaps and loss his share of interest in the company you guys own together.