You’re an artist. It could be a painter, actor and writer, but you’re an artist. And, of course, you have a artwork paintings business. Or is it a hobby? The biggest question for all you know is the difference? Think of what a company does business. Think about how much the company operates. They have a business bank account and credit card company will record all artwork paintings business expenses, keep records of sales, they pay all the costs of the bank’s business account, and they know when they have made money (profit) and how much. And certainly do not see the CEO going out and buying supplies in his personal account.
You must ask yourself if you have your artwork paintings business like this. If the answer is no, then you’re not running an artwork paintings business. If the answer is no, then what you do is simply to engage in a hobby, and it can be costly
The only thing absolute most important step for your art reproductions business is to separate your personal income and expenses from your income and expenses. As mentioned above, would not be the CEO of Home Depot going out and buying printing supplies for your personal account, and should not do it anymore. That means you need a artwork paintings business bank account. If not, then all your income and expenses are mixed and it is much harder to track everything.
So, you have a personal account and business account. Now you put your personal income (your day job, like waiting tables, tutoring, etc.) your username and put the operating result (works on jobs, the work sold to a publisher or an exhibition of ‘art, etc.) of the company’s bank account. Similarly, you should pay all personal expenses (rent, food, clothing, holidays, etc.) from your user name and you should pay all operating expenses (operating or art classes, head shots, mileage / test off, etc.) from your corporate account.
It’s very simple. The thing is that it is simple, but not necessarily easy. First, it depends on how organized a person you are and it depends on your desire to do these things. The fact is, they can and must do if you run your business really artistic enterprise. At this point you can say STOP! I do not make enough money from my company to pay all my expenses. If so, simply make a loan from your personal account to your business account and do not forget to include this loan. When the company becomes profitable, he can repay the loan. Make sure it is.
You should also be a separate credit card for artwork paintings business (even if the card is a personal name). You should only be charging personal items on your credit card (and hopefully pay off your balance each month), and operating costs can only charge the card that you have configured your credit card. So, if you are carrying balance on your credit card company, so the interest is tax deductible. This is not possible if there is even one at the expense of a personal card.
Now, what about the cost that crosses the line, sometimes they are personal and sometimes business. These are things like the mileage of your car or household expenses if you work from home. For these expenses, you must keep a clear record of when and how are personal versus business expenses. Keep a small book in the car to record the distance of artwork paintings business. Be sure to keep all your household bills (mortgage / rent, telephone, electricity, etc.) archived so you can use to determine the amount you can deduct as a business expense.
You can do it. Also art reproductions and artwork paintings are good options. Trust yourself and your business. Grow and succeed. Remember to keep the personal separate from the company and keep a clear record of them. You can then grow their business and never look back.