Determine a name for your record label. Choose a name that is easy to remember and captures the essence of the type of music you will be releasing. Don't pick anything too long or wordy.
Apply for a business name statement so that you can conduct business using the name you have chosen. This can be done in your County Registrars office. The name you have chosen may already be in use. If this is the case, the County Registrar will inform you of this, and you will have to choose another name. Filing fees are usually under $50.00 and are good for five years in most areas. The form mailed to you after completion of this step is called a DBA (doing business as).
Open a business bank account once you have received your DBA statement. You will need your DBA to open the account. Once you have your bank account you will be able to take checks and make payments to companies that do work for you. Having a separate account for your record label will also make things much easier when it is time to pay taxes.
Determine what space you will be using to run your business. Many start-up record labels use homes or apartments;however, you may choose to use a post office box or a private mail box company. If you are concerned that neither of these spaces will be adequate for the volume of business you plan to do you should consider renting an office.
Obtain a business license from the city you will be conducting business in. There is a small fee for obtaining a business license in most areas.
Acquire a tax ID number if you have any employees. If you are a sole proprietor you will not need a tax ID number. Tax ID number request forms can be obtained through an IRS office and many libraries.
Obtain a retail license so that you can sell records directly to your fans. There is a small fee to obtain a retail license that varies by area. Once you have completed this task, you have legally become a business, and you can begin selling records.