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Register Your Label Determine your label's location and register it in its state of operation. Visit the county clerk's office and find out the requirements to register a record label as they differ from state to state. The general requirements include filling out forms and payment of a fee.
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).
STEP 1: Plan your Business. STEP 2: Form a legal entity. STEP 3: Register for taxes. STEP 4: Open a business bank account & credit card. STEP 5: Set up business accounting. STEP 6: Obtain necessary permits and licenses. STEP 7: Get Business Insurance. STEP 8: Define your brand.
Large labels pay about $0.50 to $0.55 per CD on orders of 100,000 or more. 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.
There are websites that offer you the ability to create your own record label without any startup costs or investments. These sites operate by taking a percentage off of any money that you earn from going through them to sell your artists' music.
A standard record contract usually has the label paying for recording, mastering, publishing and promotions for an album. The band gets 9% of record profits. For tiny bands, it's up to them to pay for touring, but they get 100% of the profits.
Choose Your Business Structure and Label Name. Find Your Music. Indie Label Contracts: Framework and Artist Deals. Figuring Out Distribution. Figuring Out Promotion. Prepare Your First Release. First Release Redux: Ride the Learning Curve. Additional Tips.
No special license is required in any state to operate a record label. You may set up your business as a sole proprietor, limited liability company or corporation depending on your needs and the size of the business.
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