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0:58 10:42 Suggested clip Get Signed! Start Your Own Label & Give Yourself A Record D YouTubeStart of suggested client of suggested clip Get Signed! Start Your Own Label & Give Yourself A Record D
You don't have to form a company or register your label, and unless you set up a partnership you probably won't need any contracts. Big record labels can get artists on the radio and into high street shops better than you can, but most of the artists they never sign even get released.
Many indie labels skip this step, at least initially, but it is a good idea to have your record label set-up as a legal business entity from the start. You will need to be an actual, legal business if you want a business bank account or credit card, and it certainly makes tax time a lot more manageable.
Starting a small scale but standard record label company that can only carry out basic recording services/studio works in the United States of America will cost about twenty thousand dollars to fifty thousand dollars ($20,000 to $50,000).
The publisher is the person who deals with the rights of songwriters, whereas the label deals with the rights of artists. It's also true that releasing your own records rarely means that you will be acting without the use of some kind of record label or publisher.
Clearly, a Corporation is a better choice to consider in starting a record label. Similar to a Corporation, an LLC will provide you and the members with limited liability and protection of personal assets while for ownership and tax purposes allowing the LLC to be treated as a Partnership.
Labels that buy less than 10,000 CDs per year pay approximately $1.20 per CD. Record labels pay two royalties: one to artists, and another to composers & publishers. Artists can receive 10% 15% of suggested album retail minus packaging costs. Composers and publishers receive 30% or more.
Being signed basically means you as an artist are a partner with the record label. It means you work for the label and the label works for you. It means the labels own your music/compositions. No contract is the same, different artists have different contracts, depending on the negotiations.
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