In May 2018, I quit my job in law firms where I was being bullied, sexually harassed, and hazed, I dropped my PhD which did not live up to the marketing materials and where my university bought a 30ft KKK mural. I started a sole-proprietorship LLC to professionalize my art hobby and dove head first into being a full-time artist. I moved home with my family, which has been rocky at times, and I set up my room to function dually as an art studio. Building on the momentum of my visual art hobby, which picked up in 2011, I was getting gigs, residencies, and displaying my artwork all over North Texas and the country. Having an LLC made me feel confident in my new venture and allowed me to take flight.
I think artists who are serious about their profession should form an LLC, or limited liability company, and here are 3 benefits:
-An LLC commands professional treatment from the businesses, institutions, and organizations you work with as an artist.
-With an LLC, you can write off many expenses as tax deductions like supplies, car payments, gas, even rent if you are using your apartment or house as your studio. This can balance out the cost of making art.
-An LLC can protect you from standard liabilities, or risks, you or others may face when doing business with you.
-An LLC can take your art from a hobby to a business and help you secure more heavy hitting opportunities like commercial property for a studio or business loans and grants.
Here are a few links to get you started:
https://www.texas.gov/starting-business-texas/
https://www.forbes.com/advisor/business/how-to-set-up-an-llc-in-7-steps/
Here are a few tips I’ve learned along the way:
-Complete your franchise tax forms every year in May to let the government know you are still in business. My first year in business, I did not know this fact and the consequences are pretty serious. Luckily, the folks that worked at the Texas Comptroller were patient and helped me get back on track.
-Get a Sales and Use tax form along with your LLC so that you can sell items as a business. You will need to have up-to-date bookkeeping every tax season and file your taxes as a business.
-Copyright and trademark aspects of your business like logos, slogans, and names.
-Secure a lawyer and accountant. This is more important than gallery representation, a dealer, or the ‘art scene’ combined. A professional team of skilled business people can elevate your knowledge and business. They can help you review or write contracts and file your taxes for you.
I’ve already stated in a previous blog post that my five years in business as a professional artist has been a financial failure. This is because of disappointing collaborations that failed to uphold the contract, lack of heavy marketing, and lack of startup capitol, plus the COVID-19 pandemic lockdown. However, I can’t say that will be the same for you! Try starting an LLC and see for yourself.
