A revamp on how to start a publishing company
Three years ago, WordPlay T. Jay discussed how artists can start their own publishing companies and why, and recently, he updated the best process for doing so.
The video “How to Start a Music Publishing Company” is one of the most viewed on T. Jay’s music advice channel with more than 70,000, but there is something T. Jay feels he got wrong.
When thinking about how to structure a music business, you want to do it in the best way to encourage growth. That may mean doing everything yourself, or writing or publishing for others, or having other singers or artists signed to your company. The end point is having a publishing company should ensure you don’t miss any royalties.
Performing rights organizations (PROs) still pay publishing royalties to individual artists either way, but having a company active ties it to the business of songwriting.
In the original video, T. Jay gave 6 steps to starting a publishing company:
1. Create music
2. Register with a PRO
3. Get a business license
4. Get a separate bank account for the company
5. Copyright your songs (Optional)
6. Publish your music
Now, T. Jay said he’s learned that the steps are still good, but the order is wrong. Instead, it should be:
1. Create music
2. Get a business license
3. Get a separate bank account for the company
4. Register with a PRO
5. Copyright your songs (Optional)
6. Publish your music
Why did the “Register with a PRO” step move? T. Jay said although it wasn’t entirely wrong before and you should register with a PRO, you should first register with the federal government for an Employee Identification Number, then go to your state and local governments and obtain a business license.
Once you have the license, and a separate bank account for your business, then you can then join a PRO.
For more on what kind of business you should create, like a sole proprietorship or LLC, check out this explainer video (made for beatmakers but the business license information pertains to anyone) on T. Jay’s channel.
The separate bank account is also important, because that’s where you will tell the PRO to send your royalties, keeping them tied to the company and not to you individually. This keeps you in better shape when tax time comes and you already have your earnings and expenses separate from your personal bank account.
For more on this and many other topics about how to run a music business, check out the video and channel below.
WordPlay T. Jay is a hip-hop artist and producer from Little Rock, Ark., focused on making music for the underdog. He started his YouTube music advice channel because he wanted people to have information about the music business as he learns it, allowing them to apply tips and tricks for success.