Painting for a business is a different matter to paint for pleasure. Any business, even one artistic, must comply with local, state and federal laws. Depending on what city and state you paint, you may need to obtain a business license to legally sell your work, and other legal requirements.
You must make a plan for your business before you can accurately determine what kind of license and registration will be required. If you are creating a different business name to your own name, for example, have to register with your local government, apart from obtaining other licenses. The more organized you are in the planning stages, the less likely you’ll have to miss important documents and incur penalties.
Requirements of city, county and state
Ask your local government what the requirements for the business structure you have in mind are. According to the organization Artist Trust of arts groups in Washington state, many cities and counties require some sort of business license to operate. The cost of licenses may vary depending on factors such as whether you have employees or the amount of money you make. You may need a state license, in addition to fulfilling local requirements: In Washington, for example, need a license if you earn more than $ 12,000, selling your art.
Besides a business license, some cities require a special permit if you work out of your home, says lawyer Stephen Drahos Artists on the website Register. Some local governments do not permit serving businesses and some homes at all place restrictions on the percentage of your home you can devote to the business or the number of customers you can visit per day. If the city does not believe that paints your business qualifies for a permit, you can apply for a variance – a decision taken by a city council to qualify as an exception – to operate.
The Artist Trust determines that if you sell directly to individual customers, you must collect the tax on sales. That means you also have to complete the documentation for your state to collect and report the tax . However, if you sell to a gallery or an agent acting as an intermediary, are not responsible for the collection of taxes .
Many business owners try to stay off the radar and run businesses in homes without a license, says the writer George Rodriguez on the website Power Home Biz. You can feel attracted to do the same, but all you need is a disgruntled neighbor or an official of the city checking registration tax state sales to find out what you’re doing. The penalties you incur due to lack of compliance, usually do not worth the risk of operating illegally. In Washoe County, Nevada, for example, business owners who are caught operating without a license should buy one, besides paying a fine equivalent to the rates one year license.