Record label/recording studio in MI or OR, seeking advice plz

[powpowmeow]

My friend (in OR) and myself (in MI) have decided to start a small record label, with the secondary function as a recording studio and production company (based in MI).

Our current intention is to simply have a vehicle to promote and distribute our music. We are both singer/songwriters doing our own separate projects. However in the future it is possible that we will bring in other artists. Also I see the possibility of doing both in-studio producing (in MI) and freelance production work for hire. The poduction work I suppose could be done as an individual (filing as self-employed) or as as business. (I haven't previously filed as self-employed for this type of work).

Long story short... We would like to have the right business structure in the event we do start doing a lot of business (profit), but not be impeded in any way in what we are doing now (because we are starting small).

My questions are - which state is more advantageous to register in? From the research I've done already the business tax seems very slightly better in MI than OR. My friend and myself are both brand new to business, so any advice at all is more than welcome.

Thank you all in advance for your help and for having a great community like this.

[KristineS]

I live in Michigan as well and I know that some counties or cities are offering advantageous deals for companies that set up in their area. I'm not sure how far that extends, and if it's for larger companies that will employ a significant number of people, or if it's for smaller companies as well. If you have a target area in Michigan you are interested in, it might be worth calling the local Chamber of Commerce to see what's available.

[nealrm]

This may be a little off subject for this post. But with the availability of the internet, MP3 players and the like, what does a record label offer that direct music sales to the user does not??

[powpowmeow]

This may be a little off subject for this post. But with the availability of the internet, MP3 players and the like, what does a record label offer that direct music sales to the user does not??

Very legitimate question...

What does a record label offer? In short: distribution, credibility, promotion, capital. Not to mention, musicians are not exactly known for their business acumen. Sure, it is easy to sell music to someone online. This also means there is an ocean of bad music to sift through, and it's also exponentially harder to stand out.

However, my friend and I are mainly looking for a vehicle for our own projects, but we are trying to prepare as best we can for the event that it becomes a full-fledged label. And we have no business experience. So here I am :)

[powpowmeow]

Here's a question I have that I'm sure many of you could help me answer...

From the research I've done, it seems that equipment we purchase for our studio is categorized as a capital expenditure. How does the money spent on this equipment relate to deductions when we go to file taxes at the end of this year? We are unlikely to have much, if any, profit this year, so is there any way the cost of equipment purchased this year could be used to deduct against profits from, say, 2 or 3 or 5 years from now?

Thanks all!