1. Should I Register an LLC?

Registering an LLC (Limited Liability Company) is often the first step new record label owners consider to solidify their venture. But is it necessary?

LLCs are most common in the U.S., though other countries have their versions. The complexity, fees, and taxes for LLCs can vary depending on the state where you register. While Delaware and Wyoming are known for being LLC-friendly, it’s generally recommended to register in your home state.

An LLC essentially protects your personal assets from any potential lawsuits. If things go south with an artist and they decide to sue, your personal bank account and property won’t be at risk—only your business assets would be.

So, should you get an LLC? If you're in the U.S. or a country with a similar structure, it might be a good idea, especially if you own personal assets you'd like to keep separate from your business. However, some new labels operate without an LLC for a year or two, focusing on figuring out their brand and commitment before making things official. But if you're serious and want to protect yourself, go ahead and get that LLC, and maybe even hire an accountant to help you stay official.

Remember, registering an LLC doesn’t guarantee success. It’s just one of many steps in launching a record label. If you decide to go for it, start by Googling how to register an LLC in your state or consult with a music attorney.

2. Should I Register My Trademark?

What’s the difference between an LLC and a trademark? Let’s say you’ve named your label “Dusty Records.” The LLC protects your personal liability, but how do you protect the name?

You can register a trademark, which can prevent others from using your label’s name. This process can be costly, especially if you want to register in multiple categories (like music, tech, or merchandise) or countries.

Here’s my take: I don’t see many labels rushing to register trademarks, especially in the early stages. Most indie labels don’t have names that are valuable to other companies—they’re meaningful only to the label owners. If money isn’t an obstacle, by all means, go for it. But for most of us, it’s something that can wait until the label grows and becomes more established.

And just a heads-up—owning the dot com or social media handles for your label doesn’t give you legal rights to the name. Those are nice to have but aren’t the same as a registered trademark.

3. How Do I Make a Recording Contract?

You can find free templates online, or pay for pre-made ones, but these contracts may not fit your label’s needs perfectly.

Here’s how I would create a contract from scratch: Start with a “deal memo,” which is essentially a simplified version of your agreement. Outline the key points—50/50 profit share, exclusive licensing of masters for five years, royalty payment frequency, and any other terms that matter to you. Then, take this memo to the artist you’re considering signing, discuss it, and make adjustments as needed.

Finally, bring the memo to a music attorney and have them draft an official contract. Once you’ve got it, you can use it as a template for future artists.

4. Should I Own the Masters?

Owning the masters means you control the original recordings of an album, EP, or single. As the rights holder, you decide how the music is used—whether that’s streaming, pressing vinyl, or making CDs.

Some labels choose to license the masters from the artist for a set period, paying them royalties on sales. Others, especially if they’ve funded the recording process, might insist on co-owning or fully owning the masters indefinitely.

Why It Makes Sense for Record Labels to Own the Masters:

• If you’ve invested in the recording, owning the masters gives you control and the potential for long-term revenue.

• The music industry is unpredictable. Some records might be huge successes, while others could flop. Owning the masters allows you to build a back catalog of revenue-generating assets, which can fund future projects.

• The "Kate Bush Effect"—an old song blowing up years later thanks to TikTok or other factors—shows that owning the masters can be incredibly profitable down the line.

Why It Might Not Make Sense:

• This is the traditional model, but many indie labels today are pioneering a fairer way to work with artists.

• Artists might feel trapped or unhappy if they don’t own their masters, leading to strained relationships.

• If you didn’t pay for the recordings or don’t have the promotional power to justify ownership, it might not be fair to take such valuable rights from the artist.
  

5. Do I Need to Register Copyrights?

In the UK, you can’t register a copyright—once you’ve recorded or written down your music, it’s yours. The same is technically true in the U.S., though the U.S. Copyright Office does offer a service to officially register your work for a fee.

Think of registering a copyright like getting a marriage certificate. Your commitment to your work exists without it, but the certificate provides legal benefits.

There are long-term benefits to registering your copyrights, especially if you ever face challenges or if someone steals your song. But like trademarks, this might not be something you need to do immediately. If you’ve got the budget, go ahead. Otherwise, focus on what will truly benefit your label in the early days.