Legal issues that arise with doing business as an artist begin with considerations regarding whether or not to official form a business and, if so, what type of business, and go on to include such diverse issues as the need to take anti-terrorism law into account and figure out how to classify your business for statistical purposes.
Deciding Whether or Not to Go Into Business
Factors to consider in determining whether or not it would be best for you to operate as a business, along with checksheets regarding both expenses and income for tax purposes.
Riley Associates P.C. [www.artstaxinfo.com]
Peter Jason Riley/Visual Artists
Descriptions of the diverse types of business entities an artist might set up, with a discussion of how to choose among them.
Riley Associates P.C. [www.artstaxinfo.com]
Peter Jason Riley/When to Set up a Corporation or Other Business Entity
Some states require artists to pay additional taxes – beyond personal income taxes – even if they do not officially set up a business. New York State is one example.
New York Foundation for the Arts [www.nyfa.org]
Sonya Kimble-Ellis/Business of Art: Taxing Artists
Classifying Your Industry
For purposes of economic analysis and the application of laws and statutes, the U.S. government has set up a classification system for all of the different types of businesses it recognizes. This system was initially set up by the U.S. Department of Commerce and was known as the Standard Industrial Classification (SIC) codes; artists’ representatives were included in this system, but artists themselves were not. At the close of the 20th century, this system was redesigned to take into account the shift from an industrial to an information economy. The new North American Industry Classification System (NAICS) includes several categories that apply to the arts. The international system used for this purpose is based on the U.S. SIC codes. To find the category that best suits what you do, experiment with search terms (e.g., “sculpture” is categorized separately from “artist.”
U.S. Census Bureau [www.census.gov]
the U.S. NAICS:
U.S. Census Bureau/North American Industry Classification System
mapping U.S. categories onto international categories:
U.S. Census Bureau/International Concordances
Vending Ordinances
Many municipalities have ordinances for street vendors, which is a particular type of business operation. These may include such features as prior registration, payment of a fee, and restriction to certain places. Here is a discussion of the vending ordinance in New York City as it applies to artists.
New York Foundation for the Arts [www.nyfa.org]
Melissa Potter/Ask Artemisia on Street Vending for Artists in NYC
Anti-Terrorism Law & Financing
The U.S. government has significantly stepped up efforts to make sure that funds used to support terrorism are not channeled through other activities that are legal. Financing guidelines designed for non-profit organizations for this purpose have been published, though the non-profit community has a number of concerns about these guidelines.
U.S. Department of the Treasury [www.treasury.gov]
U.S. Department of the Treasury/Anti-Terrorist Financing: Voluntary Best Practices for U.S.-Based Charities
guidelines:
OMBWatch [www.ombwatch.org]
Critique of the guidelines.
OMBWatch/Treasury Releases Third Version of Anti-Terrorist Financing Guidelines
Mail
The regulations that must be followed if you wish to use the lower nonprofit rates for mass mailings. The site is a good place to look for changes in the law and in rates.
Alliance of Nonprofit Mailers [www.nonprofitmailers.org]
Alliance of Nonprofit Mailers/The Basics of Nonprofit Mail
Insurance
Artists, dealers, galleries, and museums all have an interest in making sure that the artwork they have in their possession or for which they are arranging transit or storage is fully insured. Insurance laws vary significantly from jurisdiction to jurisdiction.
A summary of the provisions regarding liability for damage to artwork that should be included in contracts between artists and galleries that will be exhibiting and/or selling the works.
Arts Law Centre of Australia Online [www.artslaw.com.au]
Michelle Borg, Alison Davis, & Ryan McConville/Caveat: Liability for Damage to Consigned Artworks