Society & Culture & Entertainment Draw & Paint & Comics & Animation

How to Start Your Own Record Company

    • 1). Make a list of possible names for you record company. Pick names that are easy to remember and indicate that you release records. Avoid choosing anything that is too long or abstract.

    • 2). Apply for a fictitious name statement. Obtain and file these papers at a country registrars office. Filing fees for a fictitious name statement are usually under $100 in most areas. You will receive a "doing business as," or DBA, statement in the mail once the process has been completed.

    • 3). Open a business checking account. If you are working alone, you may choose to use the same bank where you have personal accounts to simplify things. Most banks require a copy of your DBA statement to open an account.

    • 4). Find a space to run your business. Many start-up record companies first operate out of homes or apartments. Have enough room to store records and promotional materials. Once the business grows, look to lease professional office space.

    • 5). Acquire a tax identification number from the Internal Revenue Service. If you do not have employees, you do not need to get a tax ID number, as your Social Security number can be used. However, you may choose to get a tax ID number to protect your Social Security number and identity. Tax identification forms can be found in libraries and at IRS offices.

    • 6). Obtain a retail license to sell records directly to fans. Retail license applications can be found online at state government Web sites.

    • 7). Contact local independent record stores to see whether they will place your records in their store. Many independent stores welcome new music and will take music on consignment.

    • 8). Promote your music on social networking sites like www.facebook.com and www.myspace.com. Upload music samples so people can hear what your label is releasing.

    • 9). Pass out fliers at live music venues before and after shows. Try to choose shows for artists in the same genre to the music you are releasing.

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