Harrington on mon 24 feb 03
Hi again, patient clayarters. I have yet another query to put before
you. I have actually sold something now, and so I'm wondering, how do
you as artists structure your businesses? Do you establish a sole
proprietorship and do that whole thing, or are you just Joe Potter with
a separate checking acount for the business? My husband seems to think I
don't need to go through a whole big deal in order to keep legal, and
I'm hoping to hear what most other artists are doing.
Thanks yet again!
Lisa
Bob Nicholson on tue 25 feb 03
>Hi again, patient clayarters. I have yet another query to put before
>you. I have actually sold something now, and so I'm wondering, how do
>you as artists structure your businesses? Do you establish a sole
>proprietorship and do that whole thing, or are you just Joe Potter with
>a separate checking acount for the business? My husband seems to think I
>don't need to go through a whole big deal in order to keep legal, and
>I'm hoping to hear what most other artists are doing.
A sole proprietorship is the basic form of individual business. There
are almost no legal hurdles. Here are the basics:
1) If your state or county has sales tax, you must get a tax permit/ID
and collect tax on your sales (unless you are selling only through
galleries or outlets that handle all the tax for you).
2) If you are doing business using a name other than your own (such
as "Blue Sky Pottery"), you will need to file for a ficticious name
statement. Your city or county clerk's office can tell you how to
do this. Your bank will require this before they will open an account
under your business name. Of course, if you're simply using your
own name, skip this step.
3) You probably need a business license. The requirements can vary
widely. In my own town, Sunnyvale, the process takes about 15
minutes and costs $10. In neighboring San Jose, business licenses
cost hundreds of dollars.
This can also open a can of worms. You must tell them what type
of business you're running, and they may then tell you that you
are not allowed to run that type of business. So, before taking
this step, be sure you know the local laws and regulations that
apply to your business.
(In generally, I try to operate legally and support my city as
long as the process and the costs are reasonable.)
4) This isn't exactly related to the sole proprietorship question, but
you should probably also talk to your insurance agent about
any issues or restrictions about running a business from your
home. You'd hate to have an insurance claim disallowed because
you are running a business...
All this sounds tougher than it is. A few phone calls, a visit to
your city hall or country clerk's office, and maybe $100 in fees
will probably make you completely "legal."
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