My daughter and I have a small part time business painting wall art. We have done a couple of art fairs and sold a few pieces a year for about five years. My daughter says our tax prepairer says we should incorporate. Thoughts? How do most small business artists do it?
Sherrie C
Replies
One drawback I see is that many states have corporate taxes. And if you register for a fair as a corporation and then physically do business in that state, you must pay minimum corporate taxes, no matter how much money you make. (VT is $250.) So even if you register as an LLC, always apply for a show under your own name.