You should also be aware of tax implications if you're a sole owner. It is likely that you will be required to pay self-employment tax and
estimated quarterly taxes. In addition to your tax return for the year you'll also need to file quarterly returns. You will likely use the Schedule C and 1040 return however, you must always
Talk to a personal accountant if you require assistance in ensuring compliance.
Artists have the option to create partnerships using business models
If you have an artist who is collaborating with you in your business or you are an art collective in which more than one artist is the owner of some of the business You might consider the possibility of
Collaboration with your art business
This can be accomplished in a variety of ways. You can either establish an equal partnership, a general partnership or a restricted partnership.
A partnership is not technically considered to be a tax-exempt entity. However, you'll need an annual return. However, you will be taxed jointly on the income you earn from your partnership.
Individual tax returns. There are many benefits of a partnership structure. For example, you take on the financial burden that comes with a new venture and don't need to submit income tax.
the partnership. You remain accountable for the debts of your partner and should trust that you will pay the debt.
LLCs for Artists
Limited liability companies (also called an LLC) is a popular form of business entity used by artists.
owners-- along with the tax advantages associated with a owners, and the tax benefits associated with a. To establish an LLC, you will need to file in your particular state. Similar to a partnership.