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In the recent years there is no big issues involved in the question : "How to start your record company". One can follow six steps systematically to be up & kicking with your own record label.

The first question in the process as to how to start a record company, needs to make a solid business plan. This will allow one to fix starting dates, possible financing options, possible artist signups & addition , venues of operation. If you don't know how to write a business plan, then it is wiser to take professional help in this regard.

Deciding the initial setup in which you will be confronted with the factor of the venue , amongst the criteria included in the "how to start your record company", one may end up deciding in favor of one's own house or a rented space. If you start initially from your house, it will restrict your operation budget, which is indeed a relief. Also the equipment necessary for this has shrunk in space & also in price, than the early days equipments.
A proper balance must be maintained to do the same.

Step three in deciding how to start a record company includes the studio setup plan, and the plans of projecting your artistes. You can now continue to chalk out your financial plans & projections. You can obtain the required finances from the banks as loans, from personal investors, as bank overdrafts, or you can use your own finances for you record company to start.

The next step is to understand that the record label business is not a get rich fast business as it is shown on the TV occasionally, which should be welcome news when your are bothered with questions as to how to start a record company. This is based on finding your particular niche market and maximizing the potential of your own record label. The record label will get its funding from music as a whole , so all your income will have to come from sold records, live shows, merchandise etc. the profits earned will depend on how you are able to market yourself in this area of the business.

Meeting the legal council is the next step on the agenda vis--vis how to start a record company. Considering that all your plans are fully mapped & outlined, all possible financing options looked at & the marketing plans for the first financial year chalked out, this provides you with all the business taxation information which will make all your transactions legal. This will also prove that the income generated will be from recording activities etc.

The last step to be followed is to obtain a business license, which can be obtained personally by visiting the business license office. The most important thing that the authorities will be asking is the area of operation regarding the business. They will ensure that your neighborhood is not disturbed if you will be running it from you house. If you wish to work from other place then the same process will be repeated.

Obtaining a tax id number is required in case you take a decision of hiring people or your are in business partnerships, to be used for filing forms for the state & central Governments whenever required .

If you want to sell your music directly to the general public, you need to obtain a retail license to do the same. You are expected by the sales tax department to collect the sales tax for your records sold, This is to be filed separately

This completes all in your itinerary of the who's who of how to start a record company".

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