How to Start a Music Distribution Company

Music distribution is one of the most important aspects of the music industry. Distribution is the platform for marketing, which contributes to the success of the world's top entertainers. It is the foundation the music industry stands upon. Successful music, regardless of quality, has to be backed by strong marketing and distribution. Building a company such as this requires patience, diligence and consistency.

Things You'll Need

• Legalized business name and company structure
• Accountant
• Attorney
• Talented musical acts
• Marketing platform

Instructions

1. Handle the legal aspects of your business before advancing to any other industry obligations. Legalize your business name, decide which structure you would like to use for your business and purchase your logo. This legal process helps you to configure your tax information. This decision sets the tone for all of the internal aspects that will follow (see Resources).

2. Acquire a BMI license. BMI is an excellent way for distribution companies to formulate a platform for marketing and build a reputable resume. Click on the BMI link listed below. When the page loads in the pop-up window, click on the License tab. Enter the type of license you wish to acquire, by typing "Music" into the blank data form on the screen. A list of license options will appear. Select the "Music in the Corporate Marketplace" option link, and you will be redirected to its page. Follow the prompts on the page and provide the information needed to complete the application process.

3. Obtain a qualified accountant and attorney. Accurate accounting is one of the most important internal aspects of owning a music distribution company. Music distribution companies are based upon contracts, statement and documentation of ownership and product circulation. Therefore, an attorney must be present or active at all times. This protects the integrity and internal entity of your company.

4. Sign naturally talented artists who are willing to render quality music. This is an essential tool that most music distribution companies have moved away from. Signing artists that need a high level of artist development could cost lots of money and could end up being a bad investment.

Tips & Warnings

• Business structure is a major factor to consider when starting a music distribution company. (Business structures are considered limited liability corporation, S-Corporation, C-Corporate, Sole Proprietor, etc.) It is best to develop a business plan before beginning your company's initial start-up process. This plan will serve as a valuable asset to help you implement goals, deadlines and timelines that are attainable and feasible. If you need further assistance with any other areas of music distribution and structure, please refer to the second link below. For additional information and resources, click on the BMI link and tour the resources and support section on the homepage. This website can also be an essential tool to the formulation of your business.

• Never use or advertise a company name or moniker you do not legally own. This is a common problem in the music industry that usually results in legal action such as lawsuit filings. Building a successful music distribution company takes years of dedication and diligence. You will have to invest in an incredible amount of time and effort. Obtaining an attorney and account are highly recommended. Contracts, intellectual property ownership, royalties, and other assets are all at stake when it comes to the music industry. Therefore vast amounts of money can be incurred and lost.

Resources

• Read this Article in Spanish
• Official IRS Link for Business Structures
• BMI Link
• Website Link for Sample Business Plans and Planning Software.
• Website Link for Marketing Plan Assistance