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Starting a(n) Business Licenses & Tax IDs

Hi, I'm Curley Open Home Based Business Wendell No Fine Art

I am an artist and will sell original paintings and prints to customers in all 50 states online I have a website

, Curley.

Hi, I'm Wisconsin Sellers Permit For Artists Fine Art
FAQs - More...
Do I Need a License to Sell Art?
What other permits and Tax IDs Does a to sell arts Business Needs to Legally Start business operations?
A selling arts business needs a sellers permit if it sells or leases products or equipment that is taxable.
All products, art sold is taxable...., .

Art

As an artist, you are like a manufacturer.  You create art such as a painting and you sell  it for a profit.  That requires a sellers permit because a painting is a piece of merchandise and merchandise is taxable.

Art is a very difficult business to start up.

For example, some 59% of photographers give up their business in the first year. Of that remaining 42%, another 24% will fail within the 2nd year.

Actually, only about 18% will endure through the 3rd year. That means that more than 84% of photographer start ups give up before the 3rd year of operation. So do your research like you would do with any other business. Research the market and who your clients will be.  Then consider the licensing you need for your Art  business.

First, select your business structure: Sole Proprietor, Partnership, LLC or Corporation.

The above step is important business all documents will be filed under the type of business organizational structure. Anyhow, if you do not expect much business, just select sole proprietor as a start up photographer business.

After that, you will need to obtain a business permit because Art is a business and all businesses need one..

This is a general business permit that all new businesses must obtain.

In addition, all Art  businesses must be identified by a business tax ID called a federal tax ID number or Employer Identification Number (EIN). If you file as a photography sole proprietor, you can use your social security number instead of the federal ID.

Then, a sellers permit is required if you sell Art merchandise, such as canvas, frames, paint, etc., wholesale or retail.

The sellers permit is also called state ID, wholesale ID, resale ID, or re-seller license.

If you are an employer, you will need a federal employer Number and a State Employer Number.

For example if you hire someone to help you with photo finishing etc.

If you do business as a name other than your full legal name, for example, you do business as "Art  4 u," you will need to file a doing business as (DBA) filing.

Finally, you have the option or incorporating or forming an Art  LLC. Setting up as one of these corporate entities allows you not to file a DBA.

✔ Biz Structure

You can choose to be a(n) Fine Art :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Sonoma Business Tax Registration ( Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Fine Art business using a DBA Doing Business As Trade Name in Sonoma County , i.e., starting businesses using a company name other than the legal (given name) owner's name, need a(n) DBA Doing Business As Trade Name Registration. For example, you start a(n) Fine Art business and you call it "Ultra Fine Art Co". You will need to file a trade firm name for it.

✔ Seller Permit

Also, keep in mind that in CA though, a business license and a DBA is necessary for most businesses but if your business sells any taxable items, you will need a sales tax ID number. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states).
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

If you are thinking of hiring help, you will need a state employer ID and an IRS number employer ID. I.e., a CA Federal Tax Id Number ($29) and a(n) CA State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Sonoma, Incorporate in CA or form a(n) CA LLC .

If you will set up a corporation or form an LLC, you will not have to file a DBA (Doing Business As) unless your corproration or LLC name will be different that the busienss name you will trade under. Businesses that use the full legal name of the owner as a business name do not need to register an assumed business name. So, for example, your name is "John X Doe" and you use that as a business name.

✔ Incorporation

If you do form an Retail Trade llc or incorporate (about $49 plus state fees for most states) your Fine Art business instead of just filing a fictitious business name (dba), it will help you avoid legal and financial personal liability arising out of business transactions and you will not have to register the Sonoma business name. Instead of filing a Sonoma County fictitious business name (our service fee includes dba business name filing and legal paper publication) you can elect to incorporate in CA or form an CA LLC (starts @ $49 plus state fee for most states & includes bylaws and LLC operating agreement)..

Free Seller's Permit