The Foundational Five Steps
1. Write a business plan for your record label.
2. Pick a name for your record label and trademark it.
3. Incorporate your business, preferably in Delaware.
4. Apply for bar codes from the UC Council.
5. Register a domain name and build a web site.

The Next Seven Solid Steps
6. Start signing artists and pressing up records.
7. Hook up with a record distributor.
8. Hire a publicist (or do it yourself).
9. Hire a radio promotions company.
10. Start selling records.
11. Get a good accountant.
12. Pay your artists, on time and in full.

The business accountant for a record label is much more than just a tax preparer. The accountant is the financial quarterback of the business. Artist royalties will need to be prepared on at least a semi-annual basis, in addition to the monthly task of processing invoices from various distributors. Sometimes your accountant will arrange meetings with outside experts like attorneys, insurance agents, and real estate agents. Remember, however, that as your business grows and becomes more complicated, you may indeed need the services of a good CPA to prepare your taxes. When picking an accountant, ask yourself how tech savvy is the accountant? Are you going to have to print out your accounts to hard copy or can you simply transfer everything electronically? What kind of software are you going to have to buy? Remember, your CPA bills you by the hour, so electronic transfers can cut down the time your CPA uses to go through your financials.

Go to Step #12: Pay your artists, on time and in full.