This information is located in our software for artists. Some references within the text will be software related.

There are basically six types of business folks:
The self-employed
The builder of businesses
The inventor
The franchise owner
The marketer and the speculator.
Most artists fit into the self-employment category, addressed herein.  The legal term for this is sole proprietorship.  You and you alone own all the assets and assume all the liabilities of a sole proprietorship.
 
THINGS TO CONSIDER
 
• A place to live.  Do you want your studio separate from your living space?  Do you use toxic media in your work? Do you have other tenants/housemates to think about in this equation?
 
• A place to do business. Do you have space for a home office?  A home office allows you to deduct part of your rent or mortgage from your taxes.  A home office is a place where you take care of the business side of your practice, where you generate work that you get paid for, send out packets and proposals, keep records, expense files, marketing tools, etc.
 
•  Communication Devices.  Do you need a telephone, a cell phone, e-mail and computer?  Do you need or want a business listing in your local phone book?  Do you need an answering service or call waiting?
 
•  Transportation.  Will you need a car, or can you get by on public transportation, renting a car or truck when needed?
 
•  Health Insurance.  Do you have adequate health insurance? Can you afford NOT to have health insurance? (See the Health Insurance in the Resource section for options.)  A number of organizations provide health insurance for artists.   For instance, if you are an alumni of an art school, you maybe able to get your health insurance through their alumni association. Fractured Atlas is a non-profit that provides many artists with affordable health insurance. Also, keep up with what materials are toxic and take precautions so as to avoid health problems down the road.
 
• The self-employed are required to pay unemployment insurance for themselves and their employees.  The money is collected through the Employment Development Department (EDD).
 
•  The self-employed artist needs to begin considering retirement accounts from the beginning.  Do not wait until you are older to worry about this. Even a small amount per month adds up.
 
•  Balancing your checkbook is a necessary part of being self-employed.  Mind banking (keeping it all in your head) does not work. Consider investing in an accounting program like Quickbooks, which will help keep your accounts in order and help you out when taxes are due.
 
•  It is a good idea to create a spending plan or budget for your business.  Keeping track of how and when money goes in and out of your account is vital.
 
•  Keep records. Know how your business is doing and be able to report it accurately to the Internal Revenue Service (IRS).  Whether you do your taxes yourself or not, you need to set up a good system for keeping receipts and payment records.  A shoebox in the bottom drawer or your desk is okay for the short-term, but do not let them sit there until the end of the year.  Organize your receipts at least every quarter-year. Group them into business expenses that correlate with your expenses on your taxes. A computer program like Quickbooks will help you do this.
 
•  Most cities require a business license for any income you may receive.
 
(See Business License section)