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Article Title:
You Would Be Absolutely Crazy Not to Start Your Own Record Label... Or Would 
You Be?

Article Description:
A business that produces and releasing original music CDs is 
called a record label. Many artists dream about having their 
own record label. 

Additional Article Information:
957 Words; formatted to 65 Characters per Line
Distribution Date and Time: Thu Mar 23 03:22:43 EST 2006

Written By:     Ty Cohen
Copyright:      2006
Contact Email:  mailto:[EMAIL PROTECTED]

Article URL:

For more free-reprint articles by this Author, please visit:


You Would Be Absolutely Crazy Not to Start Your Own Record Label... Or Would 
You Be?
Copyright © 2006 Ty Cohen
The Ultimate Record Label

A business that produces and releasing original music CDs is 
called a record label. Many artists dream about having their 
href=>own record label</a>. In reality if 
you have produced and released 
your own music CD, you have for all intents and purposes created 
your own record label. However, there are some additional steps 
to becoming an "official" record label recognized in the music 

Many of today's better-known labels were started by artists who 
just wanted to release their own music to the public. Everyone in 
the music business has heard Heb Alpert's story. He started A&M 
records with $500 and a dream. You can do the same thing. Start 
out small by creating your own music and then releasing it the 
public. Later after you are successful with your own stuff, you 
can sign on other artists.

Actually Starting Your Own Record Label

The following are the steps necessary to make your label 

Decide on a business model - I like to decide what form of 
business first because it will be important when you actually 
choose your business name. The three most common forms of 
business are the sole proprietorship, partnership and 

A sole proprietorship is the simplest form of business. It has 
one owner who provides all of the startup capital takes all of 
the risks and owns all of the profits or losses. You must keep 
records of sales and expenses and file a schedule C for the 
business as part of your personal income tax return each year.

A partnership has more than one owner. Each partner provides a 
portion of the startup capital and shares the risks and the 
profits and losses. Never start a partnership without first 
drawing up a partnership agreement that spells out exactly what 
each individual's duties, responsibilities and share of the 
profits are. Partnerships must file a information return to the 
IRS and provide each partner with a schedule K to attach to their 
personal income tax return each year.

A corporation is a legal entity that can own property, sign 
contracts and be sued. A corporation also files an income tax 
return pays its own income taxes. The corporation shields the 
owners from risking all of their personal property while 
conducting business.

Each form of business has a different registration process and 
different filing fees.

If you are just starting out, a sole proprietorship or 
partnership is probably the best choice unless you already have 
significant personal assets that need protecting. Talk to a 
lawyer if you are not sure.

Select a Name - Once you decide on your business form, it's time 
to pick your business name. This can be a lot of fun but takes 
some serious thought. You will have to live with the name for a 
long time. Try to come up with three or four names that seem to 
fit your style and reflect what you are all about.. Next list 
them in order starting with the one you like best.

Register the Name - There is a good reason for choosing several 
names. You cannot legally use the same name as another business. 
So, now you need to go to your state or county government office 
and register your business. If you are lucky, the first name on 
your list will be available. If not, try the next one on the list 
until you either find one that is available of run out of names.

You will need to fill out all of the necessary forms for the 
business form you selected. The most important one is the "Doing 
Business As" form. This registers your business name and allows 
you to start a business bank account, get a business credit card, 

Buy a License - You will need to get a business license if it is 
required by your local or state governmental agency. Laws vary so 
always check to see what is required.

Sales Tax Number - Like a business license, this may or may not 
be required. Sales tax laws can be complex. Check with your local 
government agency to see what is required where you live.

Basically, that's all there is to starting your own record label. 
How much will it cost? It varies but should cost anywhere between 
$50 and $500 dollars for the various filing fees. A sole 
proprietorship is the cheapest and a corporation the most 

The Benefits of Starting Your Own Record Label

Congratulations! You are now the proud owner of your own record 
label.  Some of the advantages you now have are:

A unique identity – this is also called a brand name. It gives 
you a more professional appearance and helps you establish the 
necessary business contacts to promote your music.

Business Bank account – this will allow you to accept checks and 
for an additional fee, you can set up a merchant account and 
accept credit cards as well. An individual cannot accept credit 

Registered business – you can now produce other artists' works 
under your label.

Enter into contracts – your business can now enter into contracts 
to lease equipments, hire a hall, etc.

Join industry organizations – you may want to join one of the 
publishers' organizations like the ASCAP or BMI to learn how to 
protect the copyrights and royalties for your label.

Some Final Things to Do

Logo – design and copyright a logo for your label. The easiest 
way to do that is to publish your new on a website with the 
proper copyright notices.

Set up a Website – you really need to do this to promote your 

Stationary – get business cards and stationary printed up.

Now, go forth and promote your new record label.

Ty Cohen is the acclaimed author of over a dozen 
best-selling music industry "How to" books and courses. 
Grab a copy of Ty Cohen's latest book title by visiting and to learn more about 
starting or turning your existing record label into a 
world wide, profit pulling record label visit:  
Start A Record Label Today!



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