The biggest requirement in owning and operating a successful record label is having an ear for talent. If you can find the next big star and produce that first mega record, your name will be put on the map and possibly a few Grammys as well. You think you’ve got the ear, you know you’ve got the knack and you might even think you’ve got the cash flow. So what comes next? The lawyer of course.
Before you can break into the record label business you should probably meet with an attorney to let the state know about your new business by filing it as a corporation of Limited Liability Corporation (LLC). This will cost you a couple of hundred dollars in most states, but ensures you many benefits including cost saving tax write offs. For more information on what sort of tax write off is legal for your LLC, go and visit the IRS website. Make sure to find the proper income tax forms when you file your taxes. For the proper forms, click here to find several different types of forms. Another major benefit to becoming your own business is that you are now legally able to keep a separate bank account to manage all operating expenses as well as income. The separation between personal and business money will allow you to more clearly see what your profit margins are and where you can afford to begin taking the big risks.
Once you’re done with the lawyer, talk to a librarian. Up next you’ll need to do a lot of research into types of record labels to determine who you want to be and what your brand is. This will help you to focus your talent search and identify a target audience. Pitching your label to the right artist and in turn the right audience will save you time and thousands of dollars. Look into hiring a market manager to help you with this task if you don’t understand the concepts. This could be the most important decision you make.
From lawyer to librarian and onto the lender. If you can not afford to finance the label start up out of pocket, taking on a loan will be a necessity. While advances in technology have made disc creation and marketing more affordable than ever, you’ll want to make sure you have the funds to launch your dream properly. Working with that market manager previously mentioned can help you determine your start up costs and find the right lender to make your dreams a reality.
Lawyer, Librarian, Lender now Lover.
That’s you. You love this world and your last task to launching that label is to hold onto that love and have patience that your dream is now within your reach.