There are a couple of ways that you can register a record label. You can do a DBA which is (doing business as) or you can do whats called an incorporated. You can also file a business certificate within your county. A corporation establishes your business as a separate entity incase of any mishaps that transpire where you could possibly be sued. With a corporation the business gets sued and not your you or your personal assets. A LLC or limited liabilty company can also be registered as an alternative to a DBA or incorporated. LLC's are good for partnership arrangements and tax options. Every circumstance is different so every case needs different attention. The decision to incorporate mostly depends on ones net worth. Depending whether they possess substantial assets they will more than likely need protection. So I wouldn't recommend this for a company that is just getting started. There are different taxes and costs associated with an incorporated that probably wouldn't need to incur in case of a start up. Sole proprietorship is for accounting reasons, LLC are much more flexible between profits and loses. They operate pretty much as a hybrid partnership and corporation. So even though it might not be significant tax advantages corporations are very good for asset protection. LLC protects you from business creditors. I highly recommend getting a lawyer you might not need to incoporate right a way. Also in business if you have a partner you might want to document a partnership agreement. You to know all particular like rights to a song, ownership of trademarks and names. Most states generally employ a rule of sharing the profits evenly including all of there business assets.
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