Ok, you've found a cool label name, your universe is crystal clear, and you're ready to put your logo everywhere... but wait a minute! Before you get started, there's this slightly less sexy but essential step: choosing your legal structure. But don't worry, we'll make this as simple and digestible as possible, we promise.
🤔 2.1 – Why you need a legal structure (and why it’s not as boring as you think)
Let's not kid ourselves, launching without a legal framework is a bit like taking a road trip without a road map: you can get by, but you also risk struggling at one point or another. The legal framework is what will help you run your label without any hassle. It's also what will allow you to sign contracts with artists, receive income (thanks to streaming platforms), and even do promo without the risk of getting your knuckles rapped.
So, don't panic, we're not telling you to become a lawyer. But choosing the right legal form can really make your life easier. Here are some great options to get started smoothly, without breaking the bank.
💡 2.2 – Option 1: The 1901 law association (a classic for cool collectives)
If you're just starting out and want something simple and inexpensive, the 1901 association can be your best friend. It's super common in the artistic world and not too complicated to set up. With this, your label works a bit like a "team" of passionate friends, and you benefit from a lot of advantages.
✅ The advantages of the association:
- Almost zero creation cost: apart from a few stamps for the papers, it won’t cost you anything (or almost).
- Management freedom: as long as you are not aiming for profits, it is a very flexible framework.
- Ideal for collectives: if you are launching your label with friends, it is perfect for laying the foundations without any hassle.
❌ The - :
- Not great for making a profit: with an association, you can't make a profit or pay yourself a regular salary if you're in the office, because it's voluntary work!
- May limit your ambitions: if you want to become a pro label with a real financial structure, this may not be ideal.
👨🎓 2.3 – Option 2: Self-employment (perfect for solos who want to start small)
Are you working solo? You don't plan on managing a big budget or a team right away? Self-employment, or micro-enterprise, is a good compromise to get started without having to worry. In addition, it's easy to create, and it allows you to manage small incomes in a clean way.
✅ The advantages of self-employment:
- Super easy to set up: a few clicks and you have your self-employed status.
- Great for testing: Want to launch a few artists and see if it takes off? Perfect!
- Simple management: in terms of paperwork, it's pretty light, and you only pay your charges on the income you generate.
❌ The - :
- Limited in terms of turnover: if your label explodes and you want to make a living from it, self-employment risks becoming limiting.
- You work alone: if you want to expand your team or receive funding, you will probably have to move to a more robust status.
- . If you are a musician yourself, you may therefore have the status of intermittent performer. And there, very bad idea to become self-employed with your label, you are going to face administrative hassles!
🏢 2.4 – Option 3: The SARL or SAS (for the ambitious who see far)
Okay, now we're moving into the big leagues. The SARL and the SAS are forms of companies that allow you to do things seriously. This is what professional labels often choose, because it gives you more possibilities to grow, sign solid contracts and even attract investors, if you ever feel like it.
✅ The advantages of companies (SARL/SAS):
- Pro: With this, your label is a real business, which inspires confidence in artists, partners, and even banks.
- Allows you to hire: if you want to work with a team, you can.
- Investor opportunities: with an SAS, you can open up capital and raise funds.
- If you are intermittent, the SAS is compatible. As long as you do not pay yourself a salary, it does not interfere with your status. You can even pay yourself dividends if you make a profit. On the other hand, be careful to declare them to the tax authorities!
❌ The - :
- More expensive and more complex: creation and management costs are higher, and there is more paperwork. Fixed costs are related to accounting, insurance.
- Requires management knowledge: running a company is not child's play. But you can always get help!
🔜 2.5 – The process stage: getting started (calmly but seriously)
Once you have chosen your structure, it is time to start the process. Yes, you will have to fill out some paperwork, send some documents, but it is an essential step. My advice: don't go too fast and take the time to understand the implications of each status.
💡 Little pro tip: you can call on accounting services or firms specializing in the creation of artistic businesses if you ever need help with the procedures (they exist and they make your life easier). Don't hesitate to also call on professionals in the sector, for example associations or federations like Félin (federation of independent labels), who will give you advice and resources to do things well.
If you want to produce artists yourself with your label, that is to say finance their recording, their development, it is possible. But it often involves the employment of artists and technicians who work on the project. To do this, you will have to be in line with labor legislation in the artistic and cultural sector. Either you do everything thoroughly by registering with the social security and employer contribution funds (yes, there are plenty), or you entrust it to services like Culturepay or Movinmotion. It helps a lot but it has a fixed cost per contract, which if you have planned a lot of salaries, will end up costing you dearly. It's up to you!
🎶 2.6 – In summary: a well-chosen structure is your passport to peace of mind
Well, with all that, you have the keys to make the right choice. Take into account your budget, your ambitions, and the size of your current project. With a good structure, your label will be able to take off with peace of mind, and you will be able to focus on the most important: the music, the sound, the artists, and your unique vibe.
Come on, you have what you need to lay the foundations and become a real pro without too much hassle. Ready to get down to business?