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If you are selling any artwork yourself, it is a legal requirement to have a business license. It allows you to file for a DBA (Doing Business As) so that you can operate under the business name of your choice.
Do artists need to register as a business?
Do artists need to register as a business? Yes. You will need to register as a business. You can either register as a sole-proprietor, LLC, or corporation.
Are business licenses required in Utah?
In most cases, all businesses in Utah are required by law to register with the Utah Department of Commerce, Division of Corporations and Commercial Code, the Utah Department of Workforce Services, the Utah State Tax Commission, the Utah Labor Commission, Internal Revenue Service and with local municipalities to obtain.
Do I have to have a business license to sell on Etsy in Utah?
8. Apply for Business Licenses and Permits. Etsy doesn’t require sellers to have a business license to sell products via its platform. However, the state, county, and local municipality where you’ve formed your business may require you to hold licenses and permits to operate your company legally.
How can I legally sell my art?
In order to sell your artwork, you will need to provide a Bill of Sale. The Bill of Sale, or invoice, is one of your most important business documents. Artwork in physical form is considered personal property, and therefore a transfer of title will be necessary in the form of a Bill of Sale.
Does an artist need an LLC?
For a majority of rising artists, a limited liability company (or LLC) will make the most sense, as opposed to a partnership or corporation. (LLCs offer legal protection partnerships don’t. They also need less maintenance than full-fledged corps.
Do I need a tax ID to sell art?
If you are selling your artwork, then the answer is yes. You may also need a sales privilege license to collect sales tax and an employer identification number (EIN) for filing taxes for your business. Additional licenses may be required when your artwork is sold at art festivals and shows.
Does an LLC need a business license in Utah?
All businesses operating in Utah must obtain a license from the local municipality in which they are doing business. Contact the business licensing office for the city where the LLC’s operates (or county if it is in an unincorporated area).
How long does it take to get a business license in Utah?
How long does it take to receive a Utah business license? Most business licenses in the cities can be issued within 30 days. You can contact the city or county your businesses activity is in by calling or emailing the appropriate department (i.e., building, zoning, fire department, health department).
Can I sell on Etsy without a business license?
Simply put, Etsy doesn’t require sellers to have a business license and suggests you “contact a qualified professional” if you have questions.
How do you get a business license in Utah?
What do I need to obtain a business license? Completed Salt Lake City Corporation Application for a New Business and Regulatory License form. All necessary fees. Registration with the Utah State Department of Commerce (business name, corporation, LLC, partnership) State sales tax number (if applicable).
Do I need a tax ID number to sell on Etsy?
An Employer Identification Number (EIN). If you’ve registered your business as a sole proprietorship, which is very common for Etsy sellers, you aren’t required to get an EIN since you’ll report taxes on your personal tax returns. If you’ve formed a partnership or LLC, you’ll need an EIN.
Is it legal to resell art?
Yes, it is legal to resell the art that you own. If you own the artwork legally (e.g. by purchasing it) and can back it up with a document, like a valid receipt, then there should normally be no problem selling it.
How do artists pay taxes?
The artist usually files a “Schedule C” as part of his or her regular 1040 income tax form, which is where you report your art income and expenses. As a self-employed artist, you will usually be required to pay estimated quarterly taxes using Form 1040-ES if your Federal tax liability is over $1,000 for the year.
Is selling art online illegal?
The answer is, if you are creating fan art whether for profit or not, any copyrighted character or use of trademark in a description or title without prior written consent from the copyright owner, then selling fan art is illegal but making fan art is not illegal.
Do you pay tax on selling art?
The art sold by artists and dealers is considered inventory, which means sales are taxed generally at rates of up to the highest ordinary income tax rate, which is currently 39.6%. When investors sell works of art, they are acquiring gains on their investments, similar to selling stock for a profit.
How do freelance artists do taxes?
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.
Does an artist need a website?
There are many reasons why you, as an artist, should have a professional website, but the main reason is that your website can be fully, 100% you. It is easy to create a website that represents you and effectively promotes your work. The final piece of an artist’s website is for it to be all about the art.
How are LLCS taxed in Utah?
In Utah, the corporate income tax generally is calculated at a flat 5% of Utah taxable income with a minimum tax of $100. If your LLC is taxed as a corporation you’ll need to pay this tax. The state’s corporate income tax return (Form TC-20) is filed with the Utah State Tax Commission (TC).
Do I need a business license to rent my house in Utah?
Residential rentals are considered a business and anyone who rents out real property must obtain and maintain a current business license.
How do I get a Utah seller’s permit?
How do you register for a sales tax permit in Utah? You can register online at Utah’s One Stop Business Registration System. You can also file by mail using form Form TC-69, Utah State Business and Tax Registration.
What is a Utah business license?
State of Utah Business Licensing The main state-level permit or license in Utah is the seller’s permit, which is a common name for the state’s sales tax registration. You must obtain a seller’s permit if you: Are engaged in business in Utah.
