Hi.
I have mainly sold in my area at small shows, through my art guilds and some online through my website. Now I want to start applying for festivals both in my home state of New York and then (hopefully) expand to other states.
I have a few questions:
To start collecting taxes will I need a Employer Identification Number?
If so do I need to register my business name first?
Do most artists (that would be you guys...lol) register as a LLC or is just a DBA alright?
If I intend to show in different counties in New York, do I need to register in each county?
I assume I will need insurance, what's the best way to go about that?
If I go outside of New York are there other requirements?
Not sure what other steps are needed. Kind of 'I don't know what I don't know',,,so any other assistance would be awesome!
Thanks so much!
oh...Happy New Years everyone!
Replies
Hi Don,
I don't do many shows per year, but I do shows in several different states. I have found that the staff of the various Departments of Revenue are extremely helpful, but often difficult to be connected to in a timely fashion. So, it's easier to get your information before there's a deadline for a report or a sales tax payment. I try to write down or print out all of the directions so that the next time I don't have to start from the beginning. I'm a great wait to the last minuter. Don't follow my example!
I am Sub S corporation because of liability- saddles and horse tack besides art. Don't know about LLC but Sub S can be a real nightmare for out of state shows especially CA, TX, AZ from past experience.
Welcome Don,
Hope you're wearing your Big Boy Pants, cuz the doing-art-shows-for-a-living-life ain't for sissies! ;->
So... I think most of us simply register a DBA (or not) with our local newspaper so that we can then get a sales tax number for our home state, plus any other states that you KNOW you'll be working in regularly. Then just adhere to the particulars re., city permits, insurance requirements, temporary business licenses, etc., on a per-show basis. The show(s) usually help you out on that.
Perhaps a call to the SBA (Small Business Administration) would be helpful in getting the condensed, user-friendly information...
Good Luck,
--Chris Fedderson
Thanks Chris and Bernard! Yes I realize going into this isn’t a walk in the park. I’m lucky enough to not have to worry about this being a make it financially or die trying situation. I retired from the manufacturing world after 30 years. I’ve been out checking out festivals in the Northeast for the last couple years. I’ve also been doing shows and local art fairs for a few years. I have exhibited and placed in some national art contests. I’m also a musician so I do know the hard work of being on the road and the art of setting up, tearing down and packing lots of equipment (that’s something most people don’t know what goes on before and after a show). Nope, not scared of hard work, dealing with morons, long hours, or nasty weather. But I am prepared for lots of interacting and meeting people, discussing my work, traveling to new places, and meeting other artists.
So, I’m seeing that maybe I’m over complicating things. All I need is a DBA, a tax number and an insurance policy. Is that correct?
I have been doing art & craft fairs in Ohio and surrounding states since 1988. First is to get a vendors license for your home state. Ohio goes county by county with different rates for each of the 88 counties! You do have the option of getting a "transient" vendors license (also referred to as a statewide license good for all counties. Many shows will furnish info/contacts if you just want the vendors license for a single county. Depending on your sales level you may be required to file monthly or semi-annually(in my case). Surrounding states are not so awkward. Kentucky shows generally give you a one time use form to send in to the Kentucky Dept of Revenue within a month after the fair + Kentucky has one rate for the entire state (6%). Same for Indiana (7%). New York is one of the more difficult, you need to get your license before the show and it is forever until you say so; you are stuck with filing "0 sales" tax returns (with a $50 late penalty if you forget) forever.I have not been in a NY show since 2007; I continue to file just in case I ever want to return. Tennessee is the most aggressive state I've been in; every show has had a revenue agent waiting at the end of the fair to collect tax from the out of state exhibitors. Of course, this is because Tenn. sales tax rates are among the nations highest, frequently 10% range depending on the county (even on groceries) and they have no state income tax to fall back on. Insurance policies generally not required by most shows (many shows purchase blanket policies for the whole show/and or disclaim any other liability). The few shows I do that require insurance, I purchase from ACT. I made the decision not to buy an annual policy as I am a woodworker, not a blowtorch juggler; also I typically do 10-12 shows per year, the remainder of my time is spent doing residential cabinetry and woodwork. Hope this helps-relax and do it.
Thanks Ed! I’m seeing that state to state is totally different. Wow, pain in the hooskah! I guess for now I’ll just get a DBA then the tax ID. I’ll look into the insurance part next. Again, thanks a lot!
By the way...blowtorch juggler!? Yeah, I’d pay to see that!
I live in NYC and have been doing this for over 40 years. All I've ever had is a sales tax license.
Don, I have done shows in Mississippi andnAlabama. I didn’t have to get a license for Mississippi but did have to get one for Alabama. A state rep was onsite for the paperwork and associated fees. For this particular show in both states, Vintage Market Days, taxes were collected at the end of the show.
I have been in business for many years and I don't recall ever registering my business anywhere.
If your business is your legal name, plus another word or phrase, I don't believe that you have to register- such as if your name was Don Seib Artwork.
I did have another business name at one time and I had it registered by going to a lawyer.
As to taxes, just apply for a license as needed for whatever state you will be exhibiting. Apply to the show first, get accepted, then get your license. Some shows will provide info for this.
If you live in NY, and are currently making sales there, I suggest getting a tax license yesterday!
I have a NY license as I do shows there and NY is not always the easiest, although lately it has been going fine, thankfully.
Each state is different as to licenses and how often and how to do your returns. A few states do not have any sales tax, and some states have different taxes for different counties.
Don, I have done shows in Mississippi andnAlabama. I didn’t have to get a license for Mississippi but did have to get one for Alabama. A state rep was onsite for the paperwork and associated fees. For this particular show in both states, Vintage Market Days, taxes were collected at the end of the show.
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