How To Start A Record Label?

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How much does it cost to start a record label?

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).

How do I start my own record label?

Here are some practical tips on how to start your own label.

  • 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.

What percentage do record labels take?

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. Composers and publishers receive 30% or more.

Should a record label be an LLC?

Clearly, a Corporation is a better choice to consider in starting a record label. Similar to a Corporation, an LLC will provide you and the members with limited liability and protection of personal assets while for ownership and tax purposes allowing the LLC to be treated as a Partnership.