![]() If you are delinquent in filing for a business license, apply and get one before the end of the year, as it may be retroactive for the year. In larger cities, there are usually government agencies where you can go to fill out a form, write a small check, and get your license the same day. They usually overcharge for something you can easily do yourself. The internet also has lots of information on business matters, but beware of websites that offer to file your paperwork for a fee. Many cities have a “Lawyers for the Arts” organization that teaches workshops on such matters. They are much more complicated businesses to run and require a fair amount of business knowledge.Ĭonsult with a tax attorney to discuss the legal and financial advantages and disadvantages of each entity, and determine which would be most suitable for you. The second two options are beyond the scope of this book and should be researched with an accountant and a lawyer. However, the flexibility of a sole-proprietorship allows you to have direct control over the direction of your “company” as an artist. A sole-proprietorship means that there is one owner and that the income and expenses you incur will directly affect your personal finances. Eventually, you may want to set yourself up as a different kind of business entity. Most artists operate as sole-proprietors. You need a business license for the city in which your practice is located.Īn artist has three choices in forming a business entity: 1) a sole-proprietorship, 2) a limited-liability (LLC) partnership or 3) a corporation. Some cities now let you apply online instead of showing up at an office. Most cities have a business license department and often have multiple sites in which you can apply for a license. Visit your city our county’s municipal website for information on how to obtain a city or county business license. If your art practice gets large enough to consider incorporating, consult an attorney.Ī corporation is typically the most portable and practical entity for artists conducting business in more than one state. This is for large businesses and not applicable for most artists. To benefit from tax savings available to particular entities for example, the potential payroll tax savings available to “S” type corporations. To ensure compliance with IRS requirements and minimize hassles should you be audited-a frequent occurrence for sole-proprietorships. ![]() To shift income to other family members, associates, or friends in order to take advantage of lower income tax rates. To separate ownership and control of business operations. To raise capital for a specific venture or project by bringing in investors. To isolate a specific business venture or project, such as a film, book, musical, or other artistic venture. There is more than one owner of the business. To secure the liability protection provided by a corporation or LLC. You can also get into a lot of trouble if you have employees and do not follow legal requirements. There can be fines and legal hassles, which you want to avoid. Many artists have received warnings about declaring income on their tax return without having a business license. This is significant because not only are you required to have a business license, but also a city or county license. Also, you will not have to pay sales tax on goods that are used to produce works for sale because the sales tax gets passed on to the retail buyer.īeware that most state IRS services are now wired to city governments. You will need to fill out a resale card for each vendor you purchase from, but it will save you money because you will be eligible for discounts. If you already have a business license, apply for a resale license in order to sell work and buy materials at wholesale prices. If you receive a grant, you may be required to have a business license. You can also operate a business under your own name. It allows you to file for a DBA (Doing Business As) so that you can operate under the business name of your choice. If you are selling any artwork yourself, it is a legal requirement to have a business license. Starting a Business Basics Business License Career Options for Creative Professionals.Galleries, Dealers, Agents, & Consultants.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |