How to Set Up an Art Business

It's time to get past the barriers of fear & the unknowns that are keeping you from starting your art business. You can set up a business that's legal & legit and build a career that you love.

In this post, we're going to assume that you've already decided on what your business will be and what products you'll sell.

If you don't have all of the answers yet, don't stress! Watch this video on How to Make Money with Your Visual Art first!

Ready to set up your art business for success?

Let’s get into it…

Decide on Your Business Structure

The two most common structures for small businesses like the one you're probably building are sole proprietorships and LLCs (Limited Liability Companies). 

A Sole Proprietorship is a business run by one person – a.k.a. you. It's the most popular structure for new businesses because it's the simplest to set up & run.

Running a sole proprietorship as an artist may be easier than setting up an LLC, but it also means that there is no legal separation between you the person and your business.

A sole prop is actually SO easy to set up that….you may have already done it without realizing it! You don't have to file any formal paperwork or take any extra steps to form one. You just have to start doing business!

Heads up: if you run a business with a name that isn't your own, you will need to register a DBA (doing business as). For quick tips on this, check out our full YouTube video on How to Set Up an Art Business.

An LLC (limited liability company), on the other hand, will protect you (the owner) from liability. 

Unlike with sole proprietorships, your personal assets are NOT on the chopping block if your business gets into a tough situation.

The downside to running an LLC as an artist?

It requires more paperwork to form and costs more to set up…plus, each state handles setting an LLC up differently. Some states require a registration fee PLUS an annual fee, while some just have a one-time registration fee. 

We worked with a lawyer to set up Loomier as an LLC, and we wouldn't do it any other way.

Working with a qualified attorney gives you peace of mind that everything is set up exactly how it should be. And as a small business owner, investing in your business where it counts is EVERYTHING. 

Getting Your Money in Order

After deciding on which business structure you're going to go with, you'll want to set up a separate bank account for your business. It is so important to keep your personal finances separate from your business finances!

By getting organized from the get-go, you'll save yourself time and probably money.

If you can, we highly suggest working with a CPA experienced in working with artists. If you can't, using accounting software like QuickBooks, Freshbooks, Xero or Bench, will help you stay organized.

Interested in learning more about setting up an EIN, Sales Tax, & Income Tax as an artist? 

Check out the YouTube video below where we go into depth about everything mentioned in this blog post! 

And, to make it easier on you, we've broken down all of the things you need to get your art business off the ground into a checklist! Make sure to save this for later after watching the video where we go into extreme detail on all things related to starting your biz. 

Thanks for watching, and be sure to leave a comment on the video if you have any questions! It'll help us know what to cover in future videos.