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I'm going through this right now. I located a couple graphic designers by going to different art sites and lurking on art message boards. I found a guy who I think will be a good fit for my label and just sent him an E-mail. He read my business plan and was interested. The extra bonus is that he has done shirt designs in the past.

Long story short... he is sending me two contracts in the mail. I will sign both and send one back with half of the payment. When he receives the signed contract he will send me some roughs of the design we've talked about, over E-mail. He'll be fully compensated when we finalize the design. I will then have all rights to the finished design as he will have been compensated for it per the contract.
 
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