STARTING A RECORD LABEL
By, Dan McAvinchey
Releasing your own music on CD means that, for all intents and purposes, you've become your own record label, even if you didn't go about the administrative tasks of setting up a separate company. A record label is in the business of releasing records; since you've done that or plan to do it very shortly, you are already performing the job of a record label. It makes sense to take a few simple, additional steps to formalize what you are doing under the business title of Record Label.
The advantages of doing this are:
? Giving your activities a separate name helps you establish an identity or a brand name, and gives it a professional look (plus, it just sounds better).
? When your recordings sell, you can accept checks made out to the label, instead of Joe Blow, Musician. This establishes your income as coming from recording activities.
? If you ever decide to record or release music by other musicians, their music can be produced under your label.
? As a separate business you can lease equipment (computers, recording equipment), establish a commercial bank account, and accept credit cards as payment for your records.
Many labels were started by artists with the sole purpose of putting out their own music. The classic story, often repeated, is A&M Records, which Herb Alpert allegedly started with $500 and a dream. You can begin small and just put out your own music on your own label. At some point you may decide it will be time to release other musician's work on your label. There are some benefits to doing this; a multi-artist label has an easier time getting distribution deals and when your records are not selling well, in ...