subject: How To Start A Hip Hop Record Label In Easy Steps Part 1 - Getting Legal [print this page] For the performer who produces hip hop music, finding a traditional recording label can be difficult. The sheer numbers of artists in this field of the industry leaves the traditional recording companies staggering under the weight of trying to sort out the amateurs and the future stars. If you have been disheartened by a seemingly total lack of acceptance by the big boy recording studios, take heart. There is another method of getting your style of music produced and into the hands of the waiting public... You simply need to start your own hip hop record label.
We know what you're saying... "Wait a minute... That sounds like a lot of work... Are you sure that's even legal?"
Yes, starting your own hip hop recording label is perfectly legal if you follow the correct procedures and, to be completely honest, it does require some effort but not nearly as much as one might assume. In this part of the series, we will discuss the legal side of starting your own hip hop recording label.
Step 1 - Get Things In Order
Deciding what to call your new hip hop recording label and filing the form to make the name legal is important. In most areas, this form will be called a Doing Business As form or DBA. Coincidentally, when you see a notice listing in the paper that says something like John Doe dba Doe Business, the "dba" stands for doing business as. Once you register your hip hop recording labels new name, you will get one of those nice little notices too.
You need this dba to protect yourself in the event that someone else tries to start a recording label with the same name. Whoever registers the name first, gets to keep it or they can sell it to the other party, if they choose. The second reason you need to register a dba is the legal issues we talked about earlier. To accept payments in the name of your hip hop recording label, the name must be registered. Associated with accepting payments is paying taxes. By creating a dba, your recording label is eligible to apply for its on Tax Identification Number, or TIN, making it a separate legal entity so, if your recording label is ever audited and found to be in the wrong, you personal assets cannot be seized.
Step 2 - Know The Local Laws
We have already discussed taxes but there are other laws which apply to home based businesses, including hip hop recording labels. In most cases, you will be required to purchase a city business license, a retailers license and any state licensing before you record your first track. These laws vary a great deal from one state to the next so, please, check your local laws and ordinances before you crank up the mixing board and start recording.
In the second part of the series, we will discuss the equipment you will need for your new hip hop recording label.
