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.

When starting a business, you generally have four choices when it comes to filing with State government: Sole Proprietorship, Partnership, Limited Liability Company (LLC), or Corporation. Without a doubt, forming a Corporation is the best choice for today's record label. And strangely enough, all five major record labels (as well as countless indies) are registered as Delaware corporations. Businesses generally choose to incorporate in the State of Delaware for two reasons: (1) Delaware is well known as a corporate tax haven, and many major corporations are chartered in Delaware because the State charges NO CORPORATE TAXES to businesses not operating within the State; and (2) Delaware law permits anonymity and does not require either the disclosure or publication of the names of shareholders. Visit the State of Delaware's Division of Corporations website (www.state.de.us/corp) for more information.

Go to Step #4: Apply for bar codes from the UC Council.