The REAL Jigsaw
New member
Do any of you know for sure what incorporation method major labels incorporate as (profit or not-for-profit)?
Jigsaw
Jigsaw
M
mikeh
New member
Why would you think a major lable would be a not for profit corporation???
It is a business entity, formed and operated with the intent to make money!
It is a business entity, formed and operated with the intent to make money!
The REAL Jigsaw
New member
I hope you're aware that not-for-profits CAN make money too. It all depends on how the organization is run. That's why I asked. Thanks for your response.
The REAL Jigsaw
New member
Oh and the word label is usually meant to portray that it is NOT a business, but more of an organization.
M
mikeh
New member
I was not trying to be glib - and I do fully understand that a not for profit organization does have income. However, the primary defining difference between a not for profit organization vs. a commercial enterprise is the intent of how income will be earned and the source of the income.
A not for profit normally receives income for donations, vs, the actual sale of goods or services. A not for profit may indeed accumulate certain assets by spending less than it receives - but those excess funds are then committed to the continued work of the organization (rather then dispersed as profits and/or dividends on holdings.
A for profit organization (in this case a "corporation") - such as a record lable, is normally formed and operated with the intent of selling goods or services to generate income - with that income used to provide financial gain to the owners of the lable (in the case of a corporation - the shareholder(s). That defines any major label I've ever heard of.
I do not think you are correct at all by suggesting the term "label" is designed to imply an organization rather than a business. The term "record label", is interchangable with the term "record company" - The term organization vs. company is at best a matter of semantics - and that title is belied by the intent of the ongoing business activity (to profit the owner or not).
Now - that all being said, perhaps if a record label (company) was formed with the intent of making and/or distributing recordings that were to be used exclusively for the benefit of a not for profit organization (such as PETA, etc.) - perhaps there would be some interpretation of standard accounting practises which would allow that "label" to be considered not for profit - and in turn that "label" could request tax exempt status.
I will qualify that while I was an accountant back in the 1970's - I have not practised accounting in over 30 years - so I am not entirely qualified to interpret current tax law.
A not for profit normally receives income for donations, vs, the actual sale of goods or services. A not for profit may indeed accumulate certain assets by spending less than it receives - but those excess funds are then committed to the continued work of the organization (rather then dispersed as profits and/or dividends on holdings.
A for profit organization (in this case a "corporation") - such as a record lable, is normally formed and operated with the intent of selling goods or services to generate income - with that income used to provide financial gain to the owners of the lable (in the case of a corporation - the shareholder(s). That defines any major label I've ever heard of.
I do not think you are correct at all by suggesting the term "label" is designed to imply an organization rather than a business. The term "record label", is interchangable with the term "record company" - The term organization vs. company is at best a matter of semantics - and that title is belied by the intent of the ongoing business activity (to profit the owner or not).
Now - that all being said, perhaps if a record label (company) was formed with the intent of making and/or distributing recordings that were to be used exclusively for the benefit of a not for profit organization (such as PETA, etc.) - perhaps there would be some interpretation of standard accounting practises which would allow that "label" to be considered not for profit - and in turn that "label" could request tax exempt status.
I will qualify that while I was an accountant back in the 1970's - I have not practised accounting in over 30 years - so I am not entirely qualified to interpret current tax law.
T
The Green Hornet
New member
Yo sun-tan music people:If I'm not mistaken, The PGA is a "non-profit" organization. Major league baseball is also non-profit; and it could be so is the oblong ball sport--footsball.
It figures when they announce how many millions are given to various charities.
Don't know about major league recording labels as those folks ALL love dinero.
Keep watching those global warming stories on the national news services while we ALL freeze our behinds!
Green Hornet
M
mikeh
New member
I can't even pretend to understand the complex corporate and tax structure of organizations such as PGA and MLB - which are ruling bodies of specific sports which are funded primarily by private funds (and I think some tax revenue). They may be able to claim some not for profit satatus because they represent the sport - vs. own the teams and or players. Now the individual MLB team owners are likely for profit organizations (although many claim to lose money) and certainly the individual players likely incorporate - as for profit).
I don't think a record label like Sony, etc. can be compared to the PGA and or MLB - related to the way they incorporate and/or based on tax status.
I don't think a record label like Sony, etc. can be compared to the PGA and or MLB - related to the way they incorporate and/or based on tax status.
The REAL Jigsaw
New member
Thanks again for the replies. The thing is, I am an artist myself, so I figure even though money earned by the organization can't directly go back to the members, etc. it still can go to the artist (me). I can confirm this because I've been on the phone with government agencies discussing this very matter. Money from CD sales, performances, etc. can go to the artist, among other things.
In my case, I don't care if the members make a penny, it's all about the musicians getting what they deserve. So that is why I've been considering this route.
Jigsaw
In my case, I don't care if the members make a penny, it's all about the musicians getting what they deserve. So that is why I've been considering this route.
Jigsaw