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    4 Replies Latest reply on Aug 21, 2009 8:09 AM by Tianna

    Freelance Artist, how to start business?

    mythrilwolf Newbie
      I am an artist who wants to do commissions online. I just want to make money, but I dont want to get in trouble with the IRS when it comes to taxes.

      I wanted to use paypal to accept online payments and connect paypal to a checking account so I can access the money immediately.

      I want a seperate account from my personal accounts, to keep the money I
      make from work seperate from the money I use for personal things like
      food, bills, etc. I would put the tax money in the business account (and money for business expenses) and
      then transfer my "pay" as it were into my personal bank account. Do I
      NEED a business account specifically? I really dont want to have to apply for one
      especially since this is only a piece of my income. Im not setting up a
      business name, dba, llc, corp, whatever. I just want to freelance to
      earn some extra cash.

      Do I NEED a business account, or would setting up a personal checking account for the money I earn on the side be alright?
      I would not be using the bank account i have right now. I would be setting up a new personal checking account for recieving money online. Is there anything wrong with this?

      Thankyou for any help you can give me.
        • Re: Freelance Artist, how to start business?
          MoveForward Scout
          Okay, some of what I am going to say you will not like and try to avoid but going on the right path from the get-go will only allow you to sleep better in years to come.

          First, until you make 3,000 dollars in profit, it is considered a "hobby". After you must file for a business lic. and pay tax on your income. Also Sales Tax.

          The good news, if you want to work with PayPal you must have a business bank account set-up. After you apply they will drop pennies into this account to confirm you have the account. The only way to get a business account at a bank is to have a business lic.

          My suggest is you message indicates...keep it as a hobby, keep the money seperate so you can grow from the proceeds, then when you are ready get a business lic., business checking, etc. I would strongly suggest you look into "ETZY" ( this is a commission artist website. Good Morning Amercia Television Show, articles, etc. have suggested this site and it has BOOMED. This is a site for you to sell
          your work. They will give you your own page and I believe they send you your proceeds.

          Another option would be for you to set-up a GoDaddy Tonight Website (these are templates and super easy for you to create a website, simply follow the steps), they do have a paypal option within there "Shopping Web Sites" and offer PayPal for Shopping Sites to use, I have no idea if this is channeled through GoDaddy or you need a business lic. for this.

          My last suggestion would be to find a friend or business owner that you trust, ask them if they would consider allowing you to have your customers go through their PayPal account and you will give them a percentage of each transaction or so much per transaction. But again, after you hit the 3,000 dollar amount I would strongly suggest you get your business lic., etc. this will not only make you a trusted artist but also a honest business.

          Best to You
          • Re: Freelance Artist, how to start business?
            FarquharEli Newbie
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            • Re: Freelance Artist, how to start business?
              LUCKIEST Guide
              Freelance Artist, How to start business?? Welcome

              Who are you?? Where are you?? Do to Members page and share some info.

              MoveForward gave you GREAT info. If I wanted to start my business and stay out of trouble with
              the IRS, I would do the following.
              Establish a business name.
              Register with the IRS and get a Federal I D Number.
              Contact SCORE. SCORE is FREE and helps people in business both in person and online

              Good luck, LUCKIEST
              <!--Session data-->
              • Re: Freelance Artist, how to start business?
                Tianna Wayfarer
                Hi there!

                I think there is no need to create a separate business account. and paypal is the right solution. I also use paypal for all my financial matters.
                Well.... you want to start online business... What about a website? Have you create an online portfolio? For an artist to have a portfolio is a must.
                If you don't want to hire a web developers and web designers, you may easily "create" a professional website by yourself. I said "create", actually you are buying a ready turnkey website with ready text, images and easy-to-use control panel through which you may update any design design element.

                So, if you are interested, you may take a look at such services. For ex.
                With each turnkey website you will get a free domain name, unlimited hosting, mail box, 3 hours of certified webmaster's work monthly and etc.

                Best regards,