How to Start Your Own Record Label and Sign Yourself as an Artist: Complete Guide

By Marcus Delano Thompson

March 28, 2025 at 03:48 PM

Starting your own record label and signing yourself is a strategic move that can give you complete creative control over your music career. I'll guide you through the essential steps to make this happen.

Understand the Legal Requirements

Before diving in, you'll need to handle the legal aspects. First, register your label as a business entity - usually an LLC is recommended for its liability protection and tax benefits. Then, obtain necessary licenses and permits required in your state. Make sure to:

Register your business name
Get an EIN (Employer Identification Number)
Open a business bank account
Register with your local business authority

Set Up Your Business Structure

Creating a professional foundation is crucial. Here's what you need:

Business plan outlining your goals and strategy
Budget for initial investments
Distribution strategy
Marketing plan
Recording and production capabilities

Establish Distribution Channels

In today's digital age, distribution is primarily digital. You'll need to:

Partner with a digital distributor (like DistroKid, TuneCore, or CD Baby)
Set up accounts on major streaming platforms
Create a system for tracking royalties
Consider physical distribution options if needed

Create Your Brand Identity

Your label needs a strong brand identity:

Design a professional logo
Create branded social media accounts
Develop a website
Establish your label's unique selling proposition
Define your target audience

Sign Yourself as an Artist

Now comes the exciting part - signing yourself. Here's how:

Draft a contract that protects your interests
Include terms for royalty splits, rights ownership, and contract duration
Define release schedules and obligations
Outline marketing commitments
Specify territory rights

Set Up Your Recording Process

Ensure you have the means to produce quality music:

Set up a recording space or partner with a studio
Invest in necessary equipment
Plan your recording schedule
Establish quality control measures
Create a release timeline

Handle Administrative Tasks

Keep your business running smoothly by:

Setting up accounting systems
Registering with performance rights organizations
Creating systems for royalty collection
Maintaining proper documentation
Filing regular business reports

Build Your Team

While you're signing yourself, you'll still need support:

Hire or partner with a lawyer
Find a reliable accountant
Connect with marketing professionals
Build relationships with producers and engineers
Network with industry professionals

Launch Your First Release

Plan your debut release carefully:

Create a marketing timeline
Prepare press materials
Plan your promotion strategy
Set up pre-save campaigns
Schedule your release

By following these steps and maintaining professional standards, you'll create a legitimate record label that can effectively launch and support your music career. Remember, the key is to treat your label as a serious business venture while maintaining the creative freedom that inspired you to start it in the first place.

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