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Starting a record label

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  • 26-03-2007 9:16pm
    #1
    Frankiestylee
    Closed Accounts Posts: 2,325 ✭✭✭


    I've seen a lot of musicians release music under "record labels" that are just simply a name they're using instead of their own.

    Myself and a few friends are planning on releasing material in the coming year and I want to look into setting up a company to deal with the whole thing.

    I want a company to lias with record shops, venues, distributors, promoters, media etc

    I'm not planning on running the company for a major profit, we're all students at the moment and this isn't a career thing (although one can dream eh?). At the start we'd be releasing music by the people running the company so I don't mind investing in myself. If it worked out we'd look at helping a small number of other bands.

    We'd be working on an innovation,creativity and know-how type base rather then a big budget one. There's finance in-place for the two releases we've planned and we'll take it from there I guess.

    Now, my question is how do I go about setting up a company? Can I just pick a company name from my head and start working with it or do I have to register it etc. I'm totally in the dark as to setting up a company and whether or not I should even set up a company for what I need. Is it going to work out far more expensive to do this as a company rather then just as a person?
    I don't mind the extra effort of yearly accounts etc as I think it'd be worth it, but at the moment I'm a student and part-time paye worker so I'm pretty inexperienced in the whole self-assesment world.

    I tried looking for resources online but it seemed mostly aimed at FDI or high-tech start ups.


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    #2
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,778 Mod ✭✭✭✭Zascar


    You might get a better responce in either the dance music forum, or try the forums on these websites:

    www.bodytonicmusic.com
    www.blaa.ie
    www.novadance.com
    www.clubbing.ie


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    #3
    Frankiestylee
    Closed Accounts Posts: 2,325 ✭✭✭Frankiestylee


    I've already posted something similar in the music production part of this site, but it's not the music end of things I need a hand with, it's the business end of things. In working terms this is pretty much a PR company.

    As in:

    how do I go about making it a real company rather then just a "company" in name?

    Are there any yearly overheads a company has to pay if it makes no profit?

    Do I need to hire a chartered accountant every year to do accounts or can I do it myself? In all likely hood there would be less then 100 or so transactions a year, some years might see no activity at all.

    Will there be a change in the way I'm taxed even though I'm not earning any extra money out of it?

    Do I need to take out company insurance even though I won't have any offices or any real employees?

    Really I need to know will there be much differance in myself personally financing the product and earning my money back, compared to myself lending my company money to finance the product and then paying the money back?


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    #4
    Savman
    Closed Accounts Posts: 8,323 ✭✭✭Savman


    Frankiestylee wrote:
    how do I go about making it a real company rather then just a "company" in name?
    You can register the trading name on www.cro.ie for a small fee. It's simple enough for Sole Traders (ie - Frankiestylee Trading As Fantastic Records) but gets complicated if you want to form a Limited Company with yer mates as equal partners (ie - Fantastic Records Limited). The former is handiest and the route I'd recommend for something like this. The latter brings all sorts of legal responsibilities and criteria. Doing a Ltd. company is messy.
    Are there any yearly overheads a company has to pay if it makes no profit?
    Other than overheads such as rent etc? Not sure what you mean. If you mean some kind of annual "charge" - to whom would you be paying this? There are taxes to be paid, but if you're operating at a loss I think it can all be offset. But dont quote me, I'm no tax expert.
    Do I need to hire a chartered accountant every year to do accounts or can I do it myself? In all likely hood there would be less then 100 or so transactions a year, some years might see no activity at all.
    You dont need to, but if you are in any way involved in financial business dealings then someone has to be accounting for all incomings and outgoings. If a member of your group fancies the day-to-day chore (and it is a chore) of balancing the books then it is feasible to do it yourself. But I did (badly) for 2yrs and just recently handed everything over to an accountant who is able to claim tax relief on stuff I either didnt know about or was just too lazy to chase up. Have to be honest I'm glad to be rid of the stress of it.
    Will there be a change in the way I'm taxed even though I'm not earning any extra money out of it?
    If registering for Self Employed you will be sent a Form 11 every Sept/Oct to declare what income you have from the project, if its a loss so be it. Not being smart, but www.revenue.ie has pages of stuff to answer questions like this.
    Do I need to take out company insurance even though I won't have any offices or any real employees?
    That I really don't know, what do you mean "company insurance"? What would you be insuring?? If your work involves being in contact with the general public then maybe look at Public Liability Insurance but to be honest, for a business project you say is not a money making thing you'd be crippling yourself with needless overheads imo.
    Really I need to know will there be much differance in myself personally financing the product and earning my money back, compared to myself lending my company money to finance the product and then paying the money back
    Much of a muchness, I cant imagine it matters where the money comes from be it your personal savings or a bank loan. But that's the kind of stuff an accountant will be able to advise you on ;)


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    #5
    Frankiestylee
    Closed Accounts Posts: 2,325 ✭✭✭Frankiestylee


    Thanks Savman, that's exactly the kind of response I was looking for! Ah, revenue.ie! That's the one that was escaping me... I tried a few searchs for business startups in Ireland and kept getting the ida website and other stuff that didn't apply to me.

    Actually that response was pretty rocking, answered most of the questions I was wondering about. Yeah, when I meant yearly overheads I was on about something like corporation tax or something similar, but if it's all based on profits then it's cool.

    As for the whole accountant stuff, I don't imagine too many transactions so I reckon I could handle it myself.

    Cool, thanks Savman. Time to quest on revenue.ie :)


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