How to Start a Record Production Company
It is no secret the music industry is drastically changing. Since the advent of digital distribution it has never been easier to start a record production company and distribute music. The problem is, there has never been so many independent record labels and production companies in the history of music production, which makes it harder than ever to become a profitable record production company. Starting a record production company is the easy part.
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Instructions
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Choose a name for your record production company. Most record companies choose creative names that fit their artistic identity. For instance, Seattle's Sub Pop records chose the name to symbolize the label's focus on releasing under the radar pop albums.
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File a Fictitious Name Statement or Doing Business As (DBA) statement for your record production company. All companies, regardless of the type of business, must file a DBA statement with the Secretary of State treasurer in their state of operation.
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Choose how you want your business to be licensed. Most record production companies set up their business as a sole proprietorship, Limited Liability Company (LLC) or corporation. There are a number of pros and cons to consider when deciding how you want your business set up. For a comprehensive definition of each type of business entity, check out the official website of the Small Business Administration.
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Go to any county or state business license office and apply for a business license. The business license application is a relatively simple document to fill out. You will just need to know the address of your business and what type of business you are starting. In the case of the record production company, you cannot use your home address due to strict zoning laws in most major cities. Use a post office box for your business mailing address.
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Tips & Warnings
Avoid debt in the beginning stages of running your record production company. It is very unlikely you will be profitable in the beginning. Strive to keep your overhead as low as possible. Don't apply for credit unless it is an absolute must or you know you can make all of your payments on time.
