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In my state/county/city, one must apply for a fictitious business name through the county clerk’s office, which in Alameda County is located at the Alameda County Clerk-Recorder’s Office. Filing for a fictitious business name requires three tasks: 1) Doing a name search in order to make sure no one else is using the name you want to use, and if the name is for your publishing company, making sure it clears the name search at your PRO of choice before filing for the fictitious business name; 2) publishing your new fictitious business name in a local newspaper; and 3), yes, you guessed it— there’s a fee. Chances are good that if you earn money as a musician, music teacher, recording engineer, producer, etc., etc., whether you know it or think it makes sense or not, even if you only do business under your own name, you need to obtain a business license from the city

your business to negatively or unduly impact your neighbors or the infrastructure of your environs. Oh, and big surprise, there’s a fee associated with obtaining this permit.... So—are you in business? If you make or aspire to make a sizable part-time or full-time income from your music, so that you may keep making music and reap its benefits, you have to make a business plan, or set of plans, which include a systematic approach to funding, banking, professional services such as legal and financial. And horror of horrors, you need to establish adequate record-keeping systems. If you’ve worked hard for what you have, you’ll probably also want to consider insurance. Read the fine print of your home insurance policy, supply the agent with realistic numbers and values (how much would you really need if the house and its contents go kaputt?) to get

For the Privilege of running your own business, expect a long line of people who want your money.
in which you live. In my hometown of Fremont, CA, this can be obtained from the Revenue and Treasury Department. Basically, for the privilege of doing business within the city, you’re expected to file annually, wherein you must state your earnings for the current year. A small tax will be levied on that amount and in turn, the city issues a Business Tax Certificate which is “to be posted in a conspicuous place”, wherever you do business. My obligation to my city doesn’t end there. For me to be able to legally have a place of business on my home property, I had to file for a Zoning Administrator Permit for Home Occupation. This document spells out which kinds of business are allowed on a residential property being used for business, the type and number of vehicles that are allowed to visit the property, types of materials allowed, limitations on motor sizes allowed on the property, etc., etc. The gist of these rules is that the city really doesn’t want the operation of a quote, and ask lots of questions before you consider yourself adequately covered. Alternately, musical equipment insurance programs are offered through the American Federation of Musicians (the musicians’ union), as well as through PROs such as ASCAP or BMI. Of course you need to be a member of these institutions to be eligible for coverage. There are various insurance companies that do not require membership in any organization, such as Clarion or Near North Insurance. Be sure that your gear is covered at home and away from home—assume nothing unless you have verified it thoroughly! By now you’ve probably recognized an emerging pattern—for the privilege of running your own business, you can expect a long line of people and organizations who want your money. They say that it takes money to make money, and sadly, in my experience this statement is true. But if you want to make money and keep it, there is really no other way!

Todd Gascon (gascon@recordingmag.com) is a technology and entertainment attorney at ZentLaw in Sunnyvale, California. Mr. Gascon’s practice is focused in the areas of intellectual property law, including copyrights and trademarks, with a particular emphasis on digital media, music, motion pictures, visual arts and all entertainment issues relative to the Internet. For more information on Todd and ZentLaw, visit www.zentlaw.com. Bruce Kaphan (kaphan@recordingmag.com) is a producer/engineer/musician/composer who currently lives in the San Francisco Bay Area. For a discography and more information on Bruce, visit www.brucekaphan.com.
RECORDING AUGUST 2010

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Recording - August 2010

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