We recommend that you consult a professional before taking any legal decisions regarding your art business. However, these are some steps to get you started.
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It is possible that you've created an online shop, offered on Artwork Archive, and/or sold your artwork to family or close friends. The government is now able to assist you.
You are as a "sole owner". While you can sell such a way without being penalized or file for a company registration, it's not legally legal.
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protected from any possible liabilities.
Establishing a business name and formation depends on your requirements for liability protection, and the tax implications you see.
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If you are starting an art-related business, there are several ways to structure a business that artists can take advantage of. We will discuss art-specific issues.
Many artists choose the LLC-based business structure that allows you to separate your business and personal assets. It isn't possible to separate your assets.
If you were sued by your business (say, someone slips and is injured in your studio) then you'd be held personally accountable. The assets of your personal could then be used to cover the costs.
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The damage.
Artists - Sole Proprietorship
There is only you and your dream. You are most likely already sole proprietor. This means that both your company assets and personal assets are now sole proprietors.
They are linked. All the income that you have earned through your work is included on your tax returns. This means that the income you have earned through your work is included in your tax returns.
