Artist, Inc.?
 

As I ponder my future as a full-time professional artist, the idea of being incorporated keeps coming back to me, although I'm not sure why. Is anyone else incorporated and would it really be practical? Would it affect a relationship with agents, galleries and clients? Could I do more than art in my own corporation? Would I have to hire lots of people to help me? How can I find people to be incorporated with? Would anyone be interested in helping me with this?

Rochelle,

I can't answer all your questions, but I incorporated this year after resisting it for years. I was afraid I'd be overwhelmed by the additional paperwork. But, when my CPA told me it would save me about $7,000 in taxes, I had to sit up and listen.

I decided to pay my CPA to do whatever ongoing forms and reports were necessary. It costs more and I save less, but I have less to remember. He also handled the incorporation for me for about $250. It really was pretty easy, but he knew what he was doing. I don't have anyone else as a part of the corporation with me. Mine was done in Florida. I have a part-time assistant who works about 14 hours a week and she does my paycheck once a month and keeps on top of sending out any necessary forms that come from the accountant. My CPA stepped us through doing the paycheck thing, which was a little awkward the first time, but after that it was easy.

As I understand it, your income has to reach a certain level before it's worthwhile to do. A good CPA should be able to evaluate your situation.

Is it a general corporation? Do you think you can ever do not-for-profit? I may look into that to avoid paying taxes, but also to do something beneficial or educational; that's down the road and not something I can do right now.