running a business as an artist

I don't think the vendors or the banks really care. The IRS and the state tax department does care though. They want to see a clear distinction between business and personal funds.

I suggest making an appointment with an accountant when you're ready to open your business. The suggestions my accountant made ended up saving me money, initially sent up my books and prevented a bunch of headaches.

-- Jack Novak Buffalo, NY - USA

Investigate an LLC (Limited Liability Company) or whatever Arizona offers that is similar. It has many advantages. Consider a consult with SBA or SCORE before making a final decision on the business form.

Jim

Lynne wrote:

Ditto! I started a software/web design business last year, and we went with LLC, taxed as S-Corp. It's a HUGE benefit to us taxwise. My biggest advice is, talk to an accountant. Lawyers are fine and dandy if you want to create a big business with bulletproof paperwork, but we bypassed the lawyer step altogether and registered the business ourself. We went to an accountant who gave us all the information on the benefits of different business setups. And, as the Secretary of State clerk commented, it's the accountant who will be handling your finances, not the lawyer, and he'll have a much better idea about it all.

david

Hie thee to thy library and do a bit of research on business practices, would be my advice. There is a very good book that I recommend - you'll have to search Amazon.com or Barnes & Noble web sites to see if it's still in print and available:

THE BUSINESS OF ART, by Lee Caplin, published in cooperation with the National Endowment for the Arts (USA).

That seems to me a purely personal choice. I don't think it matters legally what you do. You will be the one responsible for paying the taxes. THE BUSINESS OF ART covers advice on creating a "corporation" and other matters that address tax advantages - or disadvantages.

I'm with Erik though when it comes to "making a name for yourself" - getting your name out there in any and every way you can. Compare the difference between being known as "Lynne's Woodworks" versus being known as "Lynne Yamaguchi, Wood Carver."

But, the banks do care!!

If a check is written to the business name, most banks will not accept it for deposit into a personal account. If the account is in the business name, then it will accept both because you will be the signature to that account.

Whoever handles business accounts at the bank can give you a copy of the form to send to the Secretary of State, with a fee (usually $25 to $50), for application to register the business name. Besides being a legal requirement for doing business, it will protect you from the possibility of future conflicts that could occur if you were using the same name as another business in your state.

Russ Fairfield Post Falls, Idaho http:/

If there were no business name there never would be a check written to a business name.

-- Jack Novak Buffalo, NY - USA