Should an independent artist start a publishing company?
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For most independent artists, starting a formal publishing company (an LLC or corporation) is not strictly necessary until you are generating significant revenue or signing other writers. However, you should always register a 'publishing entity' name with your PRO to ensure you collect 100% of your performance royalties. Without a designated publisher, the 'publisher's share' of your royalties can remain uncollected or 'black boxed' in certain territories.
- 1.Evaluate your current income streams to see if you are earning significant performance or mechanical royalties that justify the administrative setup costs.
- 2.Register as a 'Publisher' with your Performance Rights Organization (PRO) like ASCAP or BMI to collect the 50% 'publisher's share' of performance royalties.
- 3.Incorporate as an LLC if you plan to sign other songwriters or want to shield your personal assets from business liabilities.
- 4.Register your entity with the Harry Fox Agency (HFA) or Music Reports to manage and collect mechanical royalties from streaming and physical sales.
- ×Registering a publishing company with a PRO usually involves a one-time application fee (approx. $100-$250).
- ×If you are an ASCAP member, you MUST have a publishing entity to collect the publisher's share; BMI will pay the songwriter both shares if no publisher is listed, but this varies by territory.
- ×Simply owning a company doesn't collect the money—you still have to manually register every song delivery (ISRC and ISWC codes) globally.
If you choose not to start a formal company, use a 'Publishing Administrator' (like Songtrust or TuneCore Publishing). They take a small percentage (15-20%) but handle the complex global registrations that are difficult to manage manually.
Based on AI training data — may not reflect current information.
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