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HOW TO START YOUR OWN RECORD LABEL - THE LEGAL STUFF
by Steve Brodsky, Esq.
Our law firm is fast becoming the go-to law firm for new record labels. We have
helped many entrepreneurs start their music business.
Why?
They come to us because our affordable fees are the LOWEST in the country and
our knowledge is equal to the high-priced entertainment lawyers out there.
Here is a list of some of the steps you will need to take as a new label, along
with some sample fees:
1. Form your business entity, whether it's a corporation or an LLC. We will
discuss your options with you and advise you on the best way to protect yourself
and save money on taxes. This costs just $79 plus the state filing fee.
2. Get a federal tax ID number so you can open a business bank account. We
charge just $39 for this.
3. Trademark your record label name. This is very important, especially in the
music industry. It takes about a year to complete, so get started now! Our fee
is just $450 plus the filing fee.
4. Sign your artists to recording contracts. We will discuss the various ways to
structure your deals to maximize revenue potential. The flat fee for this is
only $400 per artist.
5. Trademark your artists' stage names. Another crucial step often overlooked.
Again, the fee is only $450 plus filing fees. This is typically charged to your
artist and can be deemed a recoupable advance.
6. Do you manage an artist? If so, you definitely need a management agreement to
protect yourself. Our flat fee is just $300.
7. Is your label owned by more than one person? If so, you absolutely,
positively need an operating agreement (for an LLC) or a shareholders agreement
(for a corporation). This is the document which sets forth the ownership of the
company and all the contingencies. We charge only $199-299 for this, depending
on the number of owners and the complexity of the structure.
The total for the above services, which will provide a SOLID GROUND on which to
build your business, comes to about $1418 for numbers 1, 2, 3, 4, and 5. The
government filing fees for those services would be approximately $930. To do all
of the above (1 through 7), our fee would be about $1967 (plus the $930 filing
fees).
If you think you can successfully operate a music label without doing at least
steps 1-5, you are mistaken. You need to set aside funds for the legal
structure BEFORE you budget for other expenses. Your choice is whether to pay $1418-$1967 to us, or $4000-$6000 to
another entertainment lawyer.
Ask any other lawyer what s/he would charge for the above. The average quote
will be $4000-6000.
It's your call. (866) 502-3880.
Steven Brodsky & Associates LLC
Attorneys at Law
2 West 46th Street, Suite 307
New York, NY 10036
steve@NYCMusicLawFirm.com
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Copyright © 2005 Steven Brodsky
& Associates LLC. All rights reserved.
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