THE REQUIREMENTS FOR STARTING A RECORD LABEL

Don't Get Played, Get Paid. Author Your Own Your Record Label Contracts.

With the advent of the internet and file-sharing, major record labels and the artists they house are finding it difficult to make the large profits they typically made a few years back. In other words, those are nothing but barrowed Bentley's and rented Kawasaki's in all those music videos. Independent or "Indie" record labels and Internet based labels have come onto the scene and are cutting costs and coming up with new and inventive ways to market to college students, the primary consumers of new music, and to the public in general. Many young Hip-hopreneurs have decided to breakout on there own to coordinate their own rap tours and market their Hip-hop mix tapes via their own record labels.

So you ask, what are the requirements for starting your own record label, writing your own independent record label contracts AND you want tips on how to start your own rap tour to sell and promote your own Hip-hop mix tapes? Well here's the inside scoop.

First you have to decide what form of business your record label will be. For an individual who wants to release their own and other artist's music on their label, a Sole Proprietor is the simplest way to go. Beware that all profits and losses of the label are filed on that individual's personal income tax. If you'd like to legally bring other people on board with your label, you should consider a Limited Liability Partnership for two or more people, or a Corporation. Take some time to read up on these and seek legal advice from a lawyer for setting up your operating structure and an accountant for setting up your money management system before you make your final decision.

Next you want to come up with a name for you label and Trademark it. You don't want to release your first Hip-hop mix tape or arrange for your rap tour and realize that you have to recall your release because you've used an already Trademarked name. Also, be sure to choose your label name wisely. As funny as it is around the neighborhood, "Crack Head Records" may not be the best record label name to be taken seriously in the industry.

Consider what your label will do. Record labels don't just release records. A label can release compilations or Hip-hop mix tapes, be responsible for promotions in addition to distribution, financially fund the recording and manufacturing of the records, publish songs through a publishing branch, and sign artists, other than you, to record label contracts. Have a clear idea of what direction you want to take your new record label venture in. In a nutshell, taking the time to create a well thought out written business plan will save lots of time and money. Your local Small Business Administration office is an excellent place to visit for information, resources and even start up money.

Remember this acronym "FSL", which simply means Federal, State and Local you will need to contact these governmental entities to register and obtain necessary tax identifications for the business. If you want to be a legitimate Hip-hop record label with the ability to do business with other credible businesses, artist and the general public this is very necessary. For example these steps will allow you to buy and sell goods, and also to pay sales tax and to collect it. There are many free workshops offered by the Small Business Administration Office and other groups in your local area to help you to start your Hip- hop record label in the right way.

Now you really have to do your research. Search the internet for sample music businesses or record label contracts. Remember, most record label contracts don't greatly benefit the artist, so you may want to come up with your own that is more artist-friendly. Read as many books as you can about the music industry. You need to know about rights and royalties, distribution, production and manufacturing, accounting, (be sure to set up a separate bank account for your label. It's not a good idea to commingle personal and business funds), your own Web site with the ability to sell albums on-line, and most importantly PROMOTION. Lastly, register with one of the two publishing entities, BMI or ASCAP; they will add creditability to your record label and help protect your interest in your various ventures. I personally recommend reading, "All You Need to Know About the Music Business" by Donald Passman, it's a great book for Hip Hopreneurs on any level of the business.

Promotion is where Mouf of the da South comes in. Mouf of Da Souf also known as, The East Coast Mobile Giant is no stranger to album release parties and promotions for the hottest rap tours. Our triple-threat mobile billboard, huge chrome armored vehicle equipped with 18" monitors, displays the hottest new music videos for the new artist signed to your label. Ten exterior billboards and electronic marquee will let everyone know when your artist's next single will drop. The fans will be flocking to the next video shoot or promotional label party full of music industry top names.

The Mouf of da Souf is the urban Hip-hop one stop for official Hip-hop gear and marketing for seasoned artists, both Major and Indie labels just like yours. MoufofDaSouf.com has everything you need to ensure your Hip-hop record label is successful.

For the absolute greatest experience on the Web, check us out online whenever you are looking for the newest Hip-hop trends, planning your rap tour for the new album release, or just grassroots marketing for your new Indie record label, Mouf of da Souf has got you covered.

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