The Music Quest
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Identity & Business Structure
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"No matter what the game, if you don't know the rules, the game will play YOU."
I used to think of record labels as these giant, mythical palaces where only "big shots" got to hang out. I thought you had to be discovered by some all-powerful music executive to even get an invite.
What I didn't get is that a record label isn't necessarily a building—it's the business framework of the industry. Learning the players in that framework is the first boss battle on your quest.
In simple terms, a record label is the business entity that handles all the stuff artists hate: distributing the music, protecting the copyrights for the sound recordings, collecting the royalties for those recordings, and managing the metadata. A label's job is focused on the master recording—the final product you hear on streaming services. Aren't you doing that anyway?
A music publisher is often times also the record label. Think of a publisher as a sort of middle man or promoter for the song. They manage and protect the copyright of the song and are responsible for collecting all the royalties associated with the composition. This business can also be an LLC or a sole proprietorship. What are those? I got you in the next chapter.
The Most Important Secret in the Music Industry:
The industry wants you to think you are only an "Artist" or "Songwriter." They do this so you'll sign a contract with a "Label" or a "Publisher" who will "help" you.
This is the redirect.
You, the independent creator, are BOTH the Publisher AND the Label. The "thieves" of the industry are almost always "publishing companies" (often run by a "trusted friend") who offer "help" in exchange for you signing over your "Publisher's share" of the Composition. This is the single most valuable asset a creator has, and they trick you into giving it away.
Objective: Understand the two halves of your song.
1. Understanding that every song in the world has two (2) copyrights (legal souls):
This system is designed this way for a reason. Whether you sign with a major label or decide to build your own, you have to operate within that framework.
Your business structure is the legal shield that separates your creative career from your personal life.
First, a secret: to be a record label, you don't need a building or a team of executives. You simply need to declare yourself a record label and establish legal framework.
Let's look at the two most common options.
Think of a sole proprietorship as the most basic business structure there is. The business is simply an extension of you. "DBA" means "Doing Business As"
An LLC is a separate legal entity from you, the owner. It's a more formal structure that provides a crucial layer of protection.
For me, the choice was clear, but not by preference. The limited liability protection of an LLC was always the goal, but to be honest, I was broke and couldn't afford the fees. The only realistic choice I had was to start as a sole proprietorship.
I want to remind you that while this is NOT LEGAL ADVICE, I found it as a perfectly valid way to begin. Knowing your options is the first step.
Purpose: Establish the necessary entities to protect your work, track your music, and begin the process of collecting all types of royalties.
Purpose: To collect public performance royalties (radio, TV, live venues) for the musical composition.
Action: Register both a Songwriter account and a Publisher account with your chosen PRO (ASCAP, BMI, SESAC).
Result: You'll receive a separate IPI number for yourself (Writer) and your entity (Publisher).
Purpose: To collect digital mechanical royalties from interactive streaming services (Spotify, Apple Music).
Action: Register both a Songwriter account and a Publisher account with The MLC.
Result: Separate account numbers for Writer and Publisher.
Purpose: To collect digital performance royalties for the sound recording played on non-interactive digital services (Pandora, SiriusXM).
Action: Register a Featured Performer account (Artist) and a Sound Recording Copyright Owner account (Label).
Result: Separate account numbers for the Performer and Copyright Owner.
Purpose: A unique, persistent, and globally recognized identification number for public identities.
Action: Unlike others, ISNI does NOT issue numbers directly. You MUST go through registration agencies like Sound Credit.
Result: A 16-digit "digital passport" number.
Purpose: Obtain unique codes for each track/release and formally register the intellectual property with relevant rights organizations.
Purpose: Essential unique identifiers for tracking sales, streams, and digital performance.
Action: Use a service like Sound Credit OR initiate the release process with your distributor (e.g., DistroKid). Do not distribute yet; just get the codes.
Result: ISRC (Track) and UPC (Album) codes.
Purpose: Formally register your composition to get its unique ID.
Action: Log into your PRO (ASCAP/BMI). Register the song with title, songwriter, publisher, and splits.
Result: A unique ISWC (International Standard Musical Work Code).
Purpose: Officially catalog your release in the community database for discovery.
Action: Create a profile and add your release with all details (ISRCs, UPC, Credits).
Result: A Discogs Release ID.
Purpose: Ensure precise metadata is embedded into your audio files for accurate royalty collection.
Action: Embed ALL collected metadata directly into your file using tagging software. Include:
Free Tagging Software:
Action: Thoroughly review all tagged information for spelling, accuracy, and completeness.
Action: Complete the upload process. Ensure platform metadata matches your embedded tags exactly.
Objective: Understand the two main highways for your music—Private vs. Public—and why we focus on the empowered path first.
In music, there are two main paths to get your music to the world. They are built on one simple concept: owning vs. renting.
What it is: The "Owning" model is the Direct-to-Consumer route. This path focuses on selling a copy of your music on www.Ampwall.com or similar websites (as digital downloads or physical goods) directly to your fans.
The Concept: The fan can use this for their own Private Performance (listening at home, in their headphones, etc.). This includes vinyls, CDs and Downloaded WAV files.
Analogy: This is like buying a pair of shoes. Your fan owns them. They can wear them whenever they want, in private. You get paid directly and fairly for your product.
What it is: This "Renting Model" is the traditional route of using a distributor to get your music onto public platforms like Pandora, Apple Music, YouTube Music, etc.
The Concept: The Public Platforms rents out copies of the file you uploaded to the distributor. These platforms are all forms of Public Performance. Listeners pay for temporary access.
Analogy: This is like renting shoes at a bowling alley. You pay for access, and the owner (the alley) gets paid for the public use. The owner of the bowling alley is then supposed to pay a royalty to the shoe manufacturer.
Even on this simple "Owning" path, there is one rule that good business follows. Because a "sale" is a legal "copy" of the composition, a Mechanical Royalty is owed to the Publisher. In a truly transparent model (like CreatorHelm/AmpWall), the storefront handles this by reporting the sale to The MLC, who then pays that royalty to... you, the Publisher.
When you "rent" your music on streaming platforms, the money gets split into four different "wallets".
Who: PROs (ASCAP, BMI, SESAC).
What: Public Performance royalties (Radio/TV/Venues).
Split: 50/50 between Songwriter & Publisher.
Who: The MLC.
What: Mechanical royalties (Interactive streams/downloads).
Split: 100% to the Publisher.
Who Pays: Your Distributor (DistroKid, CarToon Core, etc.)
Key Detail: The Aggregator TrapTo get on platforms like Spoti-lie, artists are forced to use one of these distributors. But the secret the industry hides is that most of these "competing" distributors aren't competitors at all. They are just different front-doors that all lead to the same few back-end aggregators. The market is dominated by a few giants like:
While there are rare exceptions, this means that whether you pick Distributor A, B or C, your money is often passing through another middleman (the aggregator) who takes a cut before you ever see a penny.
Who: SoundExchange.
What: Digital Public Performance royalties (Pandora/SiriusXM).
Split: Label (50%), Artist (45%), Musicians (5%).
Purpose: Maximize royalty collection and ensure chart tracking.
Action: Confirm the link between the composition and its digital streams.
Action: Register each sound recording using its ISRC(s).
Action: Register lyrics for sync and display.
Luminate (Billboard): Register Artist, Song, and Album.
Mediabase (Radio Airplay): Submit files for encoding.
Action: Formally register works for full legal protection.
You know the rules. Now play the game.
These are the external portals you need to execute your sovereignty.