Start a Publishing Company:
How to Put Your Band Into Business?
by Will Morgan



Why should I start a publishing company?

The mere idea might seem daunting at first, particularly to artists just beginning to stick their feet in the industry door. Would this step not be more suitable for acts touring nationally and signed artists? In actuality, the reverse is true. Firstly, establishing a publishing company early in your career will provide a very valuable layer of security between your own compositions and those trying to profit from them. Secondly, it will also serve as a vital boost towards meeting the right people. Even without the existing industry contacts or publishing offers that would necessitate a publishing company, having your own company secures your reputation as a professional artist and allows for an additional point of contact. Should you get signed (certainly a delicate and even more daunting process), you will have greater leverage, as the label will have to negotiate with you if they are interested in receiving a cut of your royalties.

How do I start a publishing company?

STEP 1: Get affiliated! You have a choice of several performing rights organizations with which you can register as a “Writer.” Choose the one that you feel best suits you, your band, and your music. This step will cost you absolutely nothing. You can find more information regarding affiliation at the following links: www.ascap.com, www.bmi.com, www.sesac.com.


STEP 2: Become a publisher! Once you have become affiliated with a performing rights organization, you can then become a publisher within that organization. Be aware that this step will cost you some money. However, it is important to realize that, as a publisher, you have now provided those in the music industry with an additional means for accessing you and your music. Also, you will be able to note your publishing company on your CDs (i.e. 2005 Retro Rock Hits, Inc. / BMI). Thus, those who hear your songs and wish to license your music will know how and where to contact you.

STEP 3: Get an Employer Identification Number (EIN). Again, this step sounds quite involved, but it is a straightforward process that will further smooth your progression into the industry. Apply for an EIN with the Internal Revenue Service at www.irs.gov, where you can download an “Application for Employer Identification Number” (Form SS-4). In turn, you will receive a federal tax identification number that, for starters, liberates you from having to put your personal Social Security Number on any more music-related files. When it comes time to file your taxes, the process will be significantly less onerous and complicated if all your band finances are separated from your personal finances. An EIN will also be needed to start your publishing company’s bank account (Step 5).

STEP 4: File a business certificate with your city or town hall. As your publishing company is a legal entity (or, more specifically, a “Partnership”), you will need to register it with your town or city, effectively notifying them that you plan on conducting business there. This step involves filing a one-page form with your contact information and company name, along with paying a small fee ($10 in most cases). Check your city or town’s website for more information.

STEP 5: Open a business bank account. Once you have a company name and your EIN, you can set up a business bank account where all of your royalties will be directed. This step eliminates any chance of losing or misplacing checks as you can designate all royalties for direct deposit into the account. You will no longer have to take the time to bring the check to the bank yourself. Additionally, as you will now be able to file taxes separately for your band’s financial affairs, you can uphold your professional image and approach to your career. Start keeping an accurate record of deposits resulting from gigs, merchandise, royalties, and CD sales, along with the withdrawals you make for studio time, mastering, duplication, merchandise, renting rehearsal space, etc.