for supply there must be demand... start with your own website and T shirts, C.Ds,w/e you can put your name
You're getting way too ahead of yourself bro. And anyway, IF you happen to ever get a big enough name for yourself to even create your own label, its certainly going to take longer than it is for you to turn 18. So the question of legality now is pretty pointless. Focus on music if that's what you want to do.
Do some mixtapes, throw em on Datpiff, promote the shit out of em on-line and get a buzz going...selling product is down the road.
Prosperous N9ne said:
hey Planet Pandamonium, whats the link to that site?
No offense meant but if you can't even find the datpiff website than you are getting way to far ahead of yourself. If you want to be serious about the music thing than you must get a fanbase first and put out quality music, nothing else should be a concern at all for a while.
Have you looked in to the cost of getting everything set up for a label?
You're 16, do you have a very steady income with no risk of losing your job any time soon? That's the first place to start. If you haven't already got a steady consistent income you can't even set it up.
You need to register the company, pay for website domain names, hosting, advertising, promotion, buying beats, registering your label so all releases are protected by law and are official etc... They are ALL pretty much initial set up costs and run you easily in to several hundred dollars at a minimum.
On to your actual question, you would need to set up a company as a sole-trader or a limited company. Both have benefits, both have disadvantages, do some research on both. However if you actually made a label and got somewhere then I'd say don't sell any assets, keep the majority ownership but do sell some shares to investors.
Oh and as a sole trader you would be personally liable if your label encountered money troubles and they could end up having private assets taken but as a limited company you won't be personally liable even if the label ends up in debt.
By the way sorry if some of the words/terms used aren't correct for the USA, I'm from England so things may be a little different, however the main bulk of everything is the same.
You can run it by yourself but just be prepared to lose almost all your social life. You can't treat running a label as a hobby or something you do in your spare time. You'll need to spend most of your time on the label. It's more than possible to start it off on your own, maybe a couple homies who would be up for doing the social media side could even help to just lighten the work load slightly however you will need people willing to help for little to no money if you expand or grow in popularity. Just make sure you've got good, trustworthy people helping.
If you get noticed and approached by another label to sign then there is multiple options you can take. You could disband your label and sign, you could refuse to sign and keep doing it yourself through your label or you can sit down and try to work out a joint deal where both your label and the one trying to sign you benefit.