Starting an independent record label in the US takes less paperwork than most people expect and more discipline than most people plan for. The legal setup fits in a few afternoons. The habits you build around catalog data, contracts and money in the first year decide whether the label still works at ten acts. This is the checklist, in the order we would do it.
Step one: decide what the label actually does
Before any forms, write one paragraph on what your label does for an act. Some labels own the masters and pay for recording and marketing. Some license finished masters for a term and split net income. Some are imprints that put a shared name and standard on releases while each act keeps its rights. That paragraph decides what agreement you need, whether you need a publishing arm, and how much money you need up front.
Step two: form the business and get an EIN
- Choose an entity. Many small labels start as an LLC; some start as a sole proprietorship and convert later. Formation happens at the state level. Talk to an accountant, and a music attorney if you have partners, before you file.
- Get an EIN. The IRS issues Employer Identification Numbers online, free, and usually on the spot. Never pay a third-party site for one.
- Open a business bank account. Keep label money out of your personal account from day one.
- Register an assumed name if you need one. If the label trades under a name different from the legal entity’s name, your state or county may require a DBA filing.
Step three: check the label name before you print it
Search the name before you build a logo around it: the USPTO trademark database, your state business registry, the streaming services and social handles. A name close to another label’s or publisher’s is a problem even with a different spelling.
A federal trademark is optional. Since January 2025 the USPTO base application fee is $350 per class of goods or services. A trademark attorney can run a clearance search and tell you which classes matter for recordings, merch and live events.
Step four: get your own ISRC prefix
Every recording needs an ISRC. Your distributor can assign them, but a label should own its codes so the catalog does not depend on any one distributor. In the US, codes come from the US ISRC Agency at usisrc.org, run by the RIAA.
- The agency charges a one-time $95 administrative fee for a Rights Owner Prefix, with no further cost to assign codes.
- A prefix lets you assign up to 100,000 ISRCs a year.
- The prefix is for recordings you own. If you only license masters, check the agreement and the agency’s guidance on who should assign the code.
- Once you add an ISRC to your account at the agency, it cannot be changed. Assign carefully and keep one register.
The ISRC guide covers the code structure and the rules that prevent duplicates. The label rule is short: one code per recording, assigned once, recorded on the song the day it is assigned.
Step five: UPCs come with distribution, usually
A UPC identifies the release (the single, EP or album as a product). Most distributors assign one when you create the release, and some charge for it. Larger catalogs sometimes license their own barcodes from GS1 US. For a new label the distributor’s UPC is normally fine; copy it onto your own catalog record the day it is assigned.
Step six: choose one distributor
Compare distributors on how they handle multiple artists, existing ISRCs and UPCs, takedowns and migration, and fees per release versus per year. The distributor comparison walks through the main options.
Pick one and run the whole roster through it if you can. Two distributors for one catalog make a duplicate upload more likely, and a duplicate splits a song’s streaming history.
Step seven: set up a publishing arm, if you will have one
Many small labels leave publishing with the writers. If your deals include publishing, the label needs a publishing entity at the PROs its writers belong to.
- Writers belong to one PRO at a time. A publisher can only collect the publisher’s share of a writer’s songs at that writer’s PRO, so labels with writers at both ASCAP and BMI often run one publishing name at each.
- Expect a one-time application fee for the publisher entity. ASCAP and BMI both charge one, and BMI’s depends on the entity type. Fees and waivers have changed in recent years, so check the current amounts on ascap.com and bmi.com before you apply.
- Register with The MLC. The MLC collects US digital mechanical royalties for compositions. Membership is free, and works it cannot match to a registered owner are held as unmatched.
The PRO comparison and music publishing 101 cover the writer side in more detail.
Step eight: register as a rights owner at SoundExchange
If the label owns masters, register free with SoundExchange as the sound recording copyright owner. SoundExchange collects digital performance royalties from non-interactive services such as internet and satellite radio, matching plays by ISRC. Each act should register as the featured artist too; that share is paid to the artist directly.
Step nine: put every artist relationship in writing
There is no standard indie deal. The common shapes are:
- Exclusive recording agreement: the label owns the masters made during the term, usually for an advance and royalty.
- License deal: the artist keeps the masters and licenses them to the label for a set term and territory.
- Net profit split: income after agreed costs is split by an agreed percentage, often used by small labels.
- Single or project deal: one release at a time, with options or none.
Every deal should say who owns what, for how long, who pays which costs, how and when the act is paid, and what happens to the catalog and the fan list when the deal ends. Have a music attorney draft or review your agreement before you sign the first act, and encourage every act to have its own lawyer. Nothing here is legal advice.
Step ten: collect splits and rights data from the first session
Get rights data right before the release. For every song, collect:
- A signed split sheet with every writer’s legal name, share, PRO and IPI number, and publisher.
- The ISRC for each recording and the UPC for the release.
- Producer, engineer, featured artist and session credits.
- The ISWC, once the song is registered with a PRO.
Then check it every quarter: compare the catalog with the distributor, confirm every writer’s PRO and IPI, and confirm each new song is registered.
Step eleven: give every act a press kit and a store
Hold every act’s press kit to one standard: bio, music, video, photos, press, tour dates and current numbers, in the same order. The EPK guide covers each section. If an act sells merch or tickets, give it its own store with its own payouts, so you can tell each act’s money apart. The merch strategies guide covers what to sell.
Step twelve: set up the books before the first deposit
Pick accounting software before money arrives. Track income by act and by source (distribution, performance, merch, sync) and costs by act, so recoupment and splits come from records. Ask an accountant about sales tax on merch, estimated taxes and paying artists and contractors. This is general information, not tax advice.
The checklist on one page
- One-paragraph description of what the label does for an act.
- Entity formed, EIN issued, business bank account open.
- Label name searched; trademark priced or filed.
- ISRC Rights Owner Prefix from usisrc.org; one code register.
- UPCs from the distributor, copied into your catalog.
- One distributor for the roster.
- Publishing entity at each writer’s PRO, and The MLC, if you publish.
- SoundExchange registration as rights owner.
- Artist agreements drafted or reviewed by a music attorney.
- Split sheets and credits collected for every song before release.
- A press kit and a store per act.
- Books set up by act and by income source.
Where Artist Results fits
Artist Results is software for artists, managers and labels. It is not a distributor and does not offer label services; keep your distributor.
The label account is free. Choose “Record label” at sign-up and add the label’s name, logo and website. The Label Hub lists every act: pick one, press Continue, work in its account, go back, pick the next. Invite artists who already have an account, or create accounts for them. Each act’s account belongs to the act.
Each act needs a paid plan: Gold $15.99 a month, Platinum $25 or Diamond $49.95. Gold and Platinum monthly plans start with a 7-day free trial, and a card is needed. The act can pay for its own, or the label can pay for several acts at once from the Billing tab; ask us about label pricing. Inside each act’s account, every song carries its own ISRC, ISWC, writers, publishers, splits and credits, and you can register songs with ASCAP, BMI and SOCAN from the song’s page. Each act gets a live EPK, and on Platinum and Diamond a store whose payouts go to the bank account connected to it. The Artist Results for Labels page has the details.
FAQ
How much does it cost to start an independent record label?
The fixed costs can be small: state formation fees (which vary by state), a free EIN, the one-time $95 ISRC prefix, and PRO publisher fees if you publish. The real costs are recording, artwork, marketing and legal review. Budget for the lawyer before the ads.
Should the label or the distributor assign ISRCs?
The label, if it owns the masters. Owning your prefix keeps the codes the same if you change distributors. Whoever assigns them, each recording gets exactly one.
Does a new label need a publishing company?
Only if your deals include publishing. If your writers keep their publishing, they register their own songs, and the label makes sure the splits and ISWCs are on its catalog records.
Can Artist Results distribute our releases or pay our artists?
No. Artist Results does not distribute music and does not pay royalties. It holds each act’s catalog and rights data, press kit, store, socials and fan tools. Keep your distributor and your accounting.
The bottom line
Starting an independent record label is twelve steps, and most of them take an afternoon. The ones that take longer are the ones that matter: a written agreement with every act, one ISRC per recording, signed splits before release, and books kept by act. Set those habits at the first release and the label scales without a cleanup. Artist Results for Labels gives you one hub for the roster with rights data on every song. Create your free label account and start your first act’s trial.