So, you’re a budding entrepreneur, or an artist who wants to release your own music? Starting a record label can be a great way to help yourself, or others, put new music out in to the world.
Here’s a comprehensive list of the things you’ll need to do to get started.
Incorporation creates formal ownership shares, which produces a taxation and legal distance between the company and the shareholders.
This in turn has tax advantages for the owners, who are usually paid as employees of the corporation.
Incorporation provides some liability protection for the corporation’s debts, and offers some measure of protection for a company’s name.
Company officers and shareholders may come and go, but the corporation exists until it is wound down.
There is no legal structure for partnership, though most partnerships will have a partnership agreement that sets out terms dictating the sharing of revenues, expenses and responsibilities.
If you intend to use a partnership name other than the names of the partners, you will have to register that name with the province in which you operate.
Writing a business plan before setting out on any new venture will force you to think in detail about your business, its strengths, weaknesses, and objectives.
Writing a plan will help you to manage your business effectively from the beginning, and give you the best possible chance of success.