Review the money and resources available. Research costs and create a budgetary plan.
File a fictitious name or "Doing Business As" statement for your company with the Registrar of Deeds office for a small fee.
Decide if the record label is going to be classified as a sole proprietorship, a partnership, or a corporation with stockholders.
Determine where the business will be located.
Apply for a business license once you know your business address.
Make a distribution plan. Self-distribution requires a retail license or permit from the Department of Revenue for a small fee.
Promote your record label business.
Decide if your label has a signature sound or is more eclectic.
Find bands to work with, keeping in mind the resources available. Seek out independently-minded artists who understand the limitations of a new small business and are more interested in building a relationship and fan following.
Come to an agreement with the artist about contracts and licensing. Be upfront about finances and get thorough documentation.
Hire any production personnel and record the album.
Mix and press your first album with a conservative amount of copies.
Release the album.
Begin the promotion cycle again, sending the album to radio stations and publications for potential airplay and reviews.
Collect sales taxes from the album sales (except those sold at wholesale price or through mail-order retail price) and report them to the state Department of Revenue.
Keep track of any success and contact distributors again.