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Help: "Registering a recordlabel"
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DETOX
Moderator
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296
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Posted : Jan 11, 2011 21:36
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I dont know laws in Scandinavia but in order to sell cds to other countries and online shops dont you have to provide them with an invoice?
And in order to provide a valid invoice dont you need to own a company? (A valid registered record company in this case).
  Toodaloo Motherfuckers!!!!! |
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Beat Agency
IsraTrance Full Member
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Posted : Jan 11, 2011 21:49
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We are not talking about CD's here but digital downloads. You do not use invoices when dealing with digital downloads on shops like example Beatport.
But yes you are right when it come to have to register a company if you have an income from selling music. But in Denmark you do not have to register the company until you reach a certain amount in income. I don't remember the exact number though. www.beatagency.dk |
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DETOX
Moderator
Started Topics :
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Posted : Jan 11, 2011 21:57
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So when as a label you give a track to Beatport and this track makes lets say 1000 dollars and they have to pay you this money dont they ask you for an invoice?
I mean how does this money transaction takes place?
Toodaloo Motherfuckers!!!!! |
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Pureuphoria
IsraTrance Junior Member
Started Topics :
17
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45
Posted : Jan 11, 2011 22:07
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Quote:
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On 2011-01-11 21:57, DETOX wrote:
So when as a label you give a track to Beatport and this track makes lets say 1000 dollars and they have to pay you this money dont they ask you for an invoice?
I mean how does this money transaction takes place?
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kinda my question too...! 
The question was shortly to say: what registrations are 100% nesessary?
As a label, can you make kind of a personal agreement on paper(between artist and label) regarding liscence and copyright holding. The interesting thing is: when you get an income on personal bank acount and you will share information with artists and share money after the signed agreement...what might happen? |
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Beat Agency
IsraTrance Full Member
Started Topics :
53
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1752
Posted : Jan 11, 2011 22:13
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Quote:
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On 2011-01-11 21:57, DETOX wrote:
So when as a label you give a track to Beatport and this track makes lets say 1000 dollars and they have to pay you this money dont they ask you for an invoice?
I mean how does this money transaction takes place?
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You sign a deal with them and you get a label management login to their "label sales toolbox" (cant remember the name right now) where all sales are shown (statistics etc. etc.) and where you can download statements etc. The on going agreement is also the invoice. You receive a royalty report in the "toolbox" (e-mail notification)and the payments to your business account every quarter (3 months).
This is how every digital download shop operate. The royalty reports are used in your company's accounting. No need for invoices.
www.beatagency.dk |
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DETOX
Moderator
Started Topics :
296
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Posted : Jan 11, 2011 22:15
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But in order to have a corporate/business bank account you must own a registered company right?
I mean otherwise the whole process is illegal more or less.
Toodaloo Motherfuckers!!!!! |
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Beat Agency
IsraTrance Full Member
Started Topics :
53
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1752
Posted : Jan 11, 2011 22:24
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Quote:
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On 2011-01-11 22:07, Pureuphoria wrote:
Quote:
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On 2011-01-11 21:57, DETOX wrote:
So when as a label you give a track to Beatport and this track makes lets say 1000 dollars and they have to pay you this money dont they ask you for an invoice?
I mean how does this money transaction takes place?
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kinda my question too...!
The question was shortly to say: what registrations are 100% nesessary?
As a label, can you make kind of a personal agreement on paper(between artist and label) regarding liscence and copyright holding. The interesting thing is: when you get an income on personal bank acount and you will share information with artists and share money after the signed agreement...what might happen?
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Any kind of agreement is a binding agreement and therefore subject to your country's law. No matter if its a free release or a commercial release. It is very important to deal with any given agreement in a professional manner as things can go mighty wrong even with the best intentions from the start.
As an example I'll use the one with the movie versus free music.
Let's say you sign artist X to release his/her track as a free release available as a free download on the internet. And imagine this track is being picked up to be used in a commercial movie without your (as a label) or the artist permission. Now also imagine the company behind the movie does not pay your label. This case can get you as a label into deep trouble. Why? Because the minute you draw up an agreement to "distribute" and release a persons music (even for free) you also become responsible for its "travel" on the internet. And if you do not have a very clear agreement stating that you have absolutely no responsibility in protecting the music in being exploited commercial you can end up having to compensate the artist at the same time as you alone are responsible to make a legal claim against the company who exploited the music commercially without your permission.
Believe me there are many traps even in releasing free music. This example is only one of them.
You are allowed to sell other people's products until a certain amount of income is reached. There's nothing illegal in transferring those money to the artists as long as they invoice you of course. After the certain amount of limited income you have to establish a company and act as a company with a VAT registration.
But as I said I cant remember the exact amount so you are better of contacting your local tax office for the amount and other more specific questions. www.beatagency.dk |
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Beat Agency
IsraTrance Full Member
Started Topics :
53
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1752
Posted : Jan 11, 2011 22:26
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Quote:
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On 2011-01-11 22:15, DETOX wrote:
But in order to have a corporate/business bank account you must own a registered company right?
I mean otherwise the whole process is illegal more or less.
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In Denmark you are allowed to have an account with a non registered business name (at first you are also allowed to use your personal account) and sell a product worldwide without registering your business (in order to pay VAT in Denmark) until you reach a certain amount of income (the tax you have to pay from the income will be seen as personal income tax). After this certain amount you are of course bound to register the company as any other legal company.
www.beatagency.dk |
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DETOX
Moderator
Started Topics :
296
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6194
Posted : Jan 11, 2011 22:30
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Thanks a lot for the inside information.
In my country Greece you must have a registered company from day one in order to have a corporate account.
Toodaloo Motherfuckers!!!!! |
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Pureuphoria
IsraTrance Junior Member
Started Topics :
17
Posts :
45
Posted : Jan 11, 2011 22:30
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Quote:
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On 2011-01-11 22:15, DETOX wrote:
But in order to have a corporate/business bank account you must own a registered company right?
I mean otherwise the whole process is illegal more or less.
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just like psychoactive substances))
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Beat Agency
IsraTrance Full Member
Started Topics :
53
Posts :
1752
Posted : Jan 11, 2011 22:34
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Quote:
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On 2011-01-11 22:30, DETOX wrote:
Thanks a lot for the inside information.
In my country Greece you must have a registered company from day one in order to have a corporate account.
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I do believe you can not make a true corporate account here in Denmark until you have registered your company but you are allowed to open up a personal bank account with a certain "business name" as a reference. And you still have to make sure the accounting is correct as you can get a penalty for not doing proper book keeping as I believe you have to be able to show all income and payments prior to the reached limited amount where you have to establish a real company.
www.beatagency.dk |
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Pureuphoria
IsraTrance Junior Member
Started Topics :
17
Posts :
45
Posted : Jan 11, 2011 22:41
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Quote:
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On 2011-01-11 22:24, Beat Agency wrote:
Quote:
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On 2011-01-11 22:07, Pureuphoria wrote:
Quote:
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On 2011-01-11 21:57, DETOX wrote:
So when as a label you give a track to Beatport and this track makes lets say 1000 dollars and they have to pay you this money dont they ask you for an invoice?
I mean how does this money transaction takes place?
|
|
kinda my question too...!
The question was shortly to say: what registrations are 100% nesessary?
As a label, can you make kind of a personal agreement on paper(between artist and label) regarding liscence and copyright holding. The interesting thing is: when you get an income on personal bank acount and you will share information with artists and share money after the signed agreement...what might happen?
|
|
Any kind of agreement is a binding agreement and therefore subject to your country's law. No matter if its a free release or a commercial release. It is very important to deal with any given agreement in a professional manner as things can go mighty wrong even with the best intentions from the start.
As an example I'll use the one with the movie versus free music.
Let's say you sign artist X to release his/her track as a free release available as a free download on the internet. And imagine this track is being picked up to be used in a commercial movie without your (as a label) or the artist permission. Now also imagine the company behind the movie does not pay your label. This case can get you as a label into deep trouble. Why? Because the minute you draw up an agreement to "distribute" and release a persons music (even for free) you also become responsible for its "travel" on the internet. And if you do not have a very clear agreement stating that you have absolutely no responsibility in protecting the music in being exploited commercial you can end up having to compensate the artist at the same time as you alone are responsible to make a legal claim against the company who exploited the music commercially without your permission.
Believe me there are many traps even in releasing free music. This example is only one of them.
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yes , but its also dangerous to live, by the way..)
I've never heard of bestseller movie with psychedelic music...but who knows.. 
The exact ammount you can earn without registering in thenmark is approx 7.000euro/year...I've read about it most of what I'm able to at the moment..but all this thing sound so foggy. its says nothing of "underground buiseness"))) but only how to register a vegetable shop, or sell music as a musicshop)) |
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Beat Agency
IsraTrance Full Member
Started Topics :
53
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Posted : Jan 11, 2011 22:45
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I recall GMS being in a commercial movie (I am not sure I'll call it psychedelic trance though) and Juno Reactor making music for Matrix. And their music is indeed very psychedelic
Anyway back on track. It's your "business" of course. And your right to do things the way you want to
I just suggest you are very careful when you make agreements with artists. Also to protect them.
And all I try to do is to explain you the way things work based on my experience both as an artist and as a business owner outside the music business (tax stuff etc.) and from inside the music business as a label.
The reason why you wont read the term "underground" business is because the minute you start to make money you are no longer considered underground. Then you are considered commercial in the term of income versus taxes etc. www.beatagency.dk |
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DETOX
Moderator
Started Topics :
296
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Posted : Jan 11, 2011 22:56
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GMS and Deedrah music got featured on Man On Fire which is an amazing movie and a worldwide hit.
Same with Juno Reactor and Matrix.
And more movies i guess.
Toodaloo Motherfuckers!!!!! |
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monno
Grapes Of Wrath
Started Topics :
9
Posts :
454
Posted : Jan 12, 2011 05:04
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No need to pay to any copyright fat cats if the artists involved with the label are not registered with said organisations. Also there is a way of avoiding fees by getting a dispensation from the rules (small run cd´s are more of a promotional tool) A business registration in Denmark is only mandatory if the income exceeds a certain amount, but there can be tax benefits involved in running everything as a proper company. Hoping psychedelic music in general make it up there where it pays to be registered with koda/ncb is a true pipe dream if i ever saw one. Truth is for small run cd´s copyright agencies and their legally sanctioned shakedowns have failed to follow with the times (thats not new i know, same goes for many musicians)As an artist it is better to make sure that you get a good price for a track upfront than hoping for a bunch of nogoodniks to come through for you. Such middlemen were established because loads of honest musicians have been cheated out of a lot of money over the years. Since it has been proven over and over again that there is almost no money involved in this scene why would anybody be interested in using copyright agencies? I certainly do not see a point.
Mastering available here:
http://www.bimmelim-soundlabs.com
http://soundcloud.com/onkeldunkel
http://www.myspace.com/onkeldunkelownz
http://www.parvati-records.com |
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