The Tip of the Tax Iceberg!

There are lots of great resources out there to help artists with their taxes. This IRS link is great for determining whether you are a hobbyist or a professional artist. Your state's small business development corporation is another exceptional resource where retired business people volunteer their time and give valuable advice free of charge. Here is the Maine SBDC link.

If you're an artist, and you haven't set yourself up as a small business, there's no time like NOW!

If you are making direct sales to collectors you should be collecting sales tax (unless you were in AK, DE, MT, NH or OR)  which means you should establish yourself as a business with your state.

If you have employees: interns, apprentices and/or sub-contractors you will need to know the laws for handling employee taxes.

As a visual artist, you are considered “self-employed” in regards to filing income taxes and will likely file a “Schedule C” as part of your 1040 income tax form, which will include your art income and expenses, ie. necessary expenses incurred in connection with your trade, business, or profession.  Creating an LLC is another, more involved, option.  Either way, you must keep track of your expenses and income for your own record keeping and tax filing.

Expenses A-Z:

Advertising
Bank fees
Equipment purchases or rental
Entertainment and meals related to your business
Insurance
Legal and accounting fees or services
Membership or association dues
Office supplies
Professional consultations
Publications, periodicals and other research materials
Repairs or maintenance
Sales taxes
Shipping or mailing
Special clothing or safety equipment for your work
Studio rent and expenses (whether at home or not)
Supplies and materials
Travel expenses
Utilities, including phone and internet
Website domain, hosting, management
Workshops, conferences or seminars

Income A-Z:

Art Sales
Artist in Residency stipend
Awards (monetary)
Commissions
Copyright royalties for published or distributed works
Grants
Honorariums
Fellowships
Rented or leased art work
Teaching stipends
Visiting artist stipend

This is just the tip of the tax iceberg!

If you're looking to tackle taxes and other professional issues, I've designed a workshop just for artists that cuts through the small business BS and gets right to the point of what artists need to know, so you can get back to where you want to be... the studio!

Artist as Small (but Creative!) Business

From A-Z, everything an emerging artist needs to know to be a Small (but Creative!) Business: artist-gallery relationships, banking, branding, budgeting, business plan, business structure, contracts, commissions, copyright, federal and state tax ID’s, funding, hiring an assistant, insurance, inventory, licensing, marketing, money management, permits, registering, sale of works and taxes. Bernard will tackle these dry by necessary topics with interactive exercises, humor and dark chocolate.

July 13-14 Maine College of Art, Portland, ME
August 10-11 Steel House, Rockland, ME