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Legal Issues in Setting up a Business
- 1. LEGAL ISSUES IN SETTING UP A BUSINESSLUIS OJEDA HERNANDEZ ELIZABETH YOUNG BUSINESS LAW
- 2. WHAT KIND OF ENTERTAINMENT BUSINESS HAVE I DECIDED TO CREATE RADIO WEBSHOW / INFORMATIVE PODCAST
- 3. WHAT KIND OF BUSINESS ENTITY WILL WE CHOOSE GENERAL PARTNERSHIP ‣ Share in the profits and are taxed on those profits on our personal income tax returns. ‣ Each partner has an equal share in the assets of the business. ‣ If disagreements were to rise, we would vote. ‣ Open to the possibilities of incorporation.
- 4. WHAT TYPES OF LICENSES WILL I NEED TO START CONDUCTING BUSINESS RMLC RADIO MUSIC LICENSE COMMITTEE BMI Broadcast Music, Inc ASCAP American Society of Composers, Authors, and Publishers SESAC Society of European Stage Author and Composers If an artist is not represented by a PRO, we must get permission from the artist (or their publisher) dir
- 5. WHAT TYPES OF INSURANCES WILL WE NEED? INSURANCES General Liability: Broad coverage that would cover us, the business owners in cases of accidents or negligence. It covers the cost of any physical damage, any legal defense, and for claims against me, my team, our employees or our products. Property: Covers real and personal property owned our business if damage or destroyed. Does not compensate for lost income/revenue. Professional Liability/Errors and Omissions: Also known as malpractice insurance, it covers legal defenses and claims for professional negligence. Renters’: Covers the contents within a leased or rented space. Is appropriate for residential as well as business rentals.
- 6. WHAT CONTRACTS WILL WE NEED TO HAVE IN ORDER TO GET THE BUSINESS UP AND RUNNING PARTNERSHIP AGREEMENT less financial burden ‣ Identify our strengths and weaknesses. ‣ Discuss our long-term goals upfront. ‣ Define our roles explicitly, set up how the partnership will handle the departure of a partner (including buy out terms). ‣ Place our parameters in writing. ‣ Less financial burden.
- 7. WHAT EXACTLY ARE WE LOOKING FOR FROM THE INVESTOR IN THE WAY OF MONEY? USICAL LIBRARY AND RECORDING EQUIPMEN For use of songs in podcast, is $29.00 per track on an average price Recording booth: From $1,000 to $4,000 Project Studio: $10,000 to $30,000 Home studio: $40,000 to $50,000
- 8. WORKS CITED Broadcast Music Inc. BMI Home Page. Retrieved on December 18th, 2019, from https://www.bmi.com American Society of Composers, Authors, and Publishers. ASCAP Home Page. Retrieved on December 18th, 20 “Black Diamond Recording Studios”. Mainroom. 23 June, 2013. Retrieved on December 18th, 2019, from http://m Society of European Stage Author and Composers. SESAC Home Page. Retrieved on December 18th, 2019, fro “So You Want to Podcast, Legally? Good Luck!. RadioWorld. October 9th, 2015. Retrieved on December 17th, 20 “How Much Does a Podcast Cost?”. Live365. November 20th, 2018. Retrieved on December 17th, 2019 from http
Editor's Notes
- I have decided to create a radio show where I can host my podcast and also incorporate musical playlists I develop. We would offer the service of introducing our audience to new subjects or events transcurring in the popular culture of our current times. We would run two days of the week in the preferably in the evening. We would have one hour section of our informative podcast and a two hour section where music is played for their enjoyment. We would build our own recording studio and manage our equipment.
- I will have a general partnership with my other colleagues where we will all be involved in the day to day operations of the partnership and share equally the management of our business. This is our preferred option since each of us would have an equal share in the assets of the business. If disagreements arise, a democratic solution where all partners have a say would be our first action. If our venture proves to be successful and we gain enough revenue to have profit, we will then begin to assess whether we should to incorporate since this could help diminish risk by separating the business from our personal assets.
- We would need to have a commercial radio license authorized by the Radio Music License Committee (RMLC) which has three branches. (ASCAP), (BMI) and the SESAC are the main three performance rights organizations (PRO) that control the vast majority of the licensing in musical works in the US and who collect publishing royalties (performance royalties) for the PUBLIC PERFORMANCE of musical works as stipulated by the U.S. Copyright Act. Currently, more than 10,000 stations in the U.S. perform ASCAP music under the terms of this license. When playing songs over the radio, only the authors/composers/writers of the song have to be compensated, not the performers
- I will need to have a partnership agreement with my team of four. With an agreement such as this, we will identify our strengths and weaknesses, discuss our long-term goals upfront, define our roles explicitly, set up how the partnership will handle the departure of a partner (including buy out terms) and most importantly, place our parameters in writing. I would consider having an attorney reading our agreement before it is presented, that way, he/she can look a it and provide an objective set of eyes on a situation about I may be biased and spot potential or actual problems that may have never crossed my mind.
- We would seek investment in the expansion of our musical library and upgrades in the quality of our recording equipment. Regarding the music library, for the use of songs in podcasts, $29.00 per track would be an average price. if we wanted to use tracks from big artists like Oasis or Madonna, then we should expect to be paying top dollar for the privilege. Lastly, when it comes to better equipment a recording booth can be built for less than $1000, and if wit were to be built by experienced professionals using pro-grade materials, it would cost at least $4,000. A home studio, or a project studio can cost anywhere from three or four hundred dollars up 10, 20, $30,000 to build. A professional studio starts around 40 to $50,000 on up to a few million, or better.