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Structure

How do you structure your business (i.e. sole proprietor, LLC, S Corporation)?

When artists are just getting started selling their work, they often begin as sole proprietors, and many just end up staying that way and it’s worked fine for them.

Those who end up changing to something else (like an LLC or s corporation) usually did so because their accountant or advisor suggested they switch for one reason or another.

Here’s what our Allies had to say about their business structures:

Cody Kuehl:

I’m still a sole proprietor. I talked to a couple of people and they said it sounded like sole proprietor was the best for what I’m doing. And I have the business insurance for the liability side of the art stuff.

Josh Berman:

I think we started out as an LLC just because whoever was telling me what to do at the time, they were like, We’re going to set you up as an LLC. Great, whatever that means.

I think maybe five or six years ago, my accountant suggested that we switch to an S corp[oration], so now we’re an S corp. And to be honest, I’m not entirely familiar with all the benefits of the structure, the corporate entity. But I know it works.

Patrick Kane McGregor:

I still do work for Colossal Media as a freelancer and some of the jobs that me and my son [Tristan] do require [an LLC, which he is]. And it’s just kind of a broad overhead company name, so I have a license and insurance and all that stuff.

Pedro Barrios:

[Jaime Molina and I] own an LLC and it’s 50/50. I think we actually just switched it because of tax purposes. An accountant helped with that.

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