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Forming a LLC and indie record label

Asked 213 day 3 h | Viewed 448 times | Updated 212 day 21 h |

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Gravatar photo djbartos93

Hello all. now that i have built up my studio and quite a nice list of clients i was wondering what will it take to form a LLC. i mean i know there is all the normal stuff like taxes and such that i will have to do, but are there anything hidden things i should know about before registering?

Also i was thinking about getting a copyright license and forming a very small indi record label. i have no idea if it would be worth it. i am just looking at staying pretty small with it but i just want a label that some of the local bands around me can trust. so what do you guys think of that? would all of it be worth it?? or is it just throwing money out the window for all the registration and licensing fees?

2 Answers

  1. Answered: 212 day 21 h (0) | Permalink

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    Gravatar photoJustin Vencel

    Ah yes, the business aspect of music.

    I think it depends on what state you are going to incorporate in, for instance, it's like $800 a year to register an LLC here in the state of California.

    Here is a comparison chart of some of the differences between the different incorporation types.

    There are sites like legalzoom.com that will allow you to file your own paper work online and avoid an attorney fee.

    I would try posting your business question at answers.onstartups.com.  It's a site like this one but dedicated to business startups.  You should get some good answers there.

    In the end you will probably want to consult a music lawyer just to cover proper copyrighting and to have a bulletproof music contract drawn-up.

     

  2. Answered: 193 day 9 h (1) | Permalink

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    Gravatar photoTheCrazyPoet

    In most states, it's pretty simple. Go to your state website, find the Secretary of State section, and look under business information. Most states allow you to fil incorporation paperwork (called Articles of Organization in most states for an LLC). It's usually pretty cheap - only $50/year here in Colorado. You should look into trademarking your business name as well and getting a checking account for the business. You'll also want to look into insurance - once you have a business, even a small one, your homeowners insurance will NOT cover your gear or IP (or that of your clients) in the event of a disaster.

    It can all add up to a bit of cash, but trust me, doing it right in the beginning saves money (and MAJOR headaches) over "fixing" things later. And to echo Justin's point above...if in doubt, consult a music business attorney. Well worth the expense. I know a great one I've used for many years if you want a referral.

    • Doesn't sound too painful, thanks for the info.

      Gml Lover | Feb 26 at 04:02

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