Starting a music publishing company is an important step for songwriters and composers looking to maximize their royalties and maintain control over their work. While the process can seem complex, it becomes manageable when broken down into clear steps. Rather than thinking of a publishing company as a traditional business, it's better to see it as a name and number registered with a Performing Rights Organization (PRO), similar to a writer’s IPI number.
This setup allows you to collect royalties for streams and performances of your compositions. Below is a step-by-step guide to establishing your own music publishing company.
1. Ensure You Have Eligible Music
Before you can start a publishing company, you must have compositions ready for registration. Your music can be in various forms, including recordings (physical or digital releases), soundtracks for film or TV, or other broadcasts. Most PROs require you to have at least one officially released song before registering a publishing company.
2. Choose a Name and Register Your Business
Your publishing company’s name will serve as your brand identity, so choose wisely. A memorable and professional name will help when pitching music for radio play, TV, and film placements. You can use your own name (e.g., "Stephen Bishop Music") or create a unique name (like "Just In Case Publishing"). Since these are actual publishing companies, it’s important to avoid using them. I suggest researching on Google or checking ASCAP's repertoire to make sure your chosen publishing name is original and hasn’t already been taken.
Once you’ve settled on a name, register your business with your state’s Secretary of State office. This allows you to obtain a Federal Tax ID number (EIN) and open a dedicated business bank account. Depending on your goals and structure, you can choose from various business types, such as a sole proprietorship, LLC, or corporation. If you are a solo songwriter handling everything yourself, an LLC is usually sufficient. However, if you have multiple collaborators, an S-corp may be a better choice, especially if you have a team or a business manager handling finances.
Personally, I used the site Bizee, formerly Incfile, as the easiest way to register an LLC, which cost about $600. The process was much easier than through the Secretary of State's office. Plus, they have a quiz directly on their site to determine what type of business you need to set up. Here is a link to their site, there is also a renewal fee every year. https://bizee.com/v12
3. Open a Business Bank Account
To properly manage your finances and ensure you can track royalty payments, you must open a business bank account. Keeping your publishing income separate from personal finances will make tax filing easier and help maintain financial clarity.
To open a business account, you'll need to first register your business as part of step #2. After that, you can visit your bank’s local branch to open the account with the necessary documents. If you're considering Chase Bank, you do have the option to open an account online, but it’s usually better to do it in person for a smoother process.
4. Join a Performing Rights Organization (PRO)
To collect performance royalties, you must affiliate with a PRO such as ASCAP, BMI, or SESAC (invite-only). If you are only publishing your own work, registering with one PRO is sufficient. However, if you plan to publish other artists' music, you must register with multiple PROs, as an ASCAP-affiliated publishing company cannot collect royalties for a BMI-affiliated writer, and vice versa.
5. Copyright Your Music
While not legally required, copyrighting your compositions provides legal protection against infringement. You can register your works with the U.S. Copyright Office online, though processing times can take several months. Copyright registration ensures you have legal recourse if someone uses your music without permission.
6. Register with Mechanical Rights Organizations
Mechanical royalties are generated from digital streams, downloads, and physical sales. To collect these, register your publishing company with organizations such as The Harry Fox Agency, The Mechanical Licensing Collective (MLC), and Music Reports. These organizations distribute royalties from platforms like Spotify, Apple Music, and other streaming services.
7. Consider Taking a Music Business Class
The music publishing industry is complex, and a strong foundation in business can help you navigate it successfully. Taking a music business class can help you understand licensing, contracts, and royalty collection, ensuring you make informed decisions when managing your publishing company.
I also offer a comprehensive guidebook that covers everything you need to know about the music industry— from publishing and sync licensing to management, record deals, and more. No gatekeeping involved. It's a fraction of the cost of a college degree and packed into about 100 pages. You can find the link at the end of this article.
8. Evaluate Whether You Need a Publishing Administrator
Setting up and running a music publishing company requires time and effort. Some creators opt to work with a publishing administrator who handles licensing, royalty collection, and paperwork for a fee. While this means giving up a small percentage of royalties, it can save time and ensure proper management of rights and payments.
Songtrust offers this service and you keep 100% of your royalties. https://www.songtrust.com
Conclusion
Starting a music publishing company empowers songwriters by allowing them to retain control over their music and maximize their revenue. While the process requires research and administrative work, the benefits of owning your publishing rights far outweigh the challenges. Whether you choose to manage it independently or work with a publishing administrator, taking the right steps will ensure you collect the royalties you deserve.
Liz’s Tip:
Think of a publishing company less like a traditional business and more like a specific name and number registered with a PRO—similar to your writer IPI number—that allows you to collect royalties for streams and performances of music you wrote and released. When you register (or your distribution platform registers) a composition with your PRO, you specify the writer and the publishing “company.”
In your case, the publishing company is just a name and unique number that traces back to you. In larger operations, an actual company may control thousands of compositions.
If you are self-releasing and want to receive both halves of the royalty pie (which you are owed and entitled to), you must register a publishing “company” to collect the publishing half.
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Please note, the information provided is for educational purposes only and should not be considered legal advice. For specific legal guidance, please consult an entertainment lawyer.