Sales Tax

[Medieve]

So, I'm a student with no previous experience with "serious" commissions. I've recently gotten a referral from a professor for a first-time author looking for a student to illustrate his book.

I've made the mistake of not setting up a contract from the get-go (whoops) so I'm in the process of sorting out how to do that (advice on this would be a plus). But, while researching contracts, I've noticed that in some contracts, the artist will include a sales tax, which to my horror requires a sales tax license as well as a business license.

Would I be required to setup a business and get a sales tax license in order to complete the commission or otherwise what can I do about it?

[Elwell]

In general, no.

[Digital_Blacksmith]

Ive never had to. I just get the contract, do the work, get the pay half now, half later, and poof, its done. No sales tax or going through odd business laws.

[Ian Mack]

You can still go through with the job.

http://www.gag.org/pegs/index.php -- Lots of info about pricing/contracts.

eventually you'll want to start a business so that you can write off your art supplies and all that good stuff. When you decide to do it, it's a simple matter of goig to your government's website and searching through there. I'm currently doing this in Canada and it seems like the business license can be done in a day! I'm not sure if the sales tax license comes with it though. I'll have to look into that.

Good luck!

[Elwell]

In the US, business licenses are a strictly local matter. They have nothing to do with whether you can deduct supplies/expenses on your taxes.
Anyone who makes any significant income from art, especially freelancing, should consult with an accountant who is familiar with artist's/freelancer's issues.

[otis]

You should only be charging sales tax if you SELL your Art. Providing a service does not require a sales tax. But you will have to file for income.

[Qitsune]

You should only be charging sales tax if you SELL your Art. Providing a service does not require a sales tax. But you will have to file for income.

Depends where you are located, Medieve's profile doesn't say. In Canada, taxes are on sales and services but if you make less than 30k a year from your business, you don't need to collect taxes. It's really a local question.

[Medieve]

I'm in Colorado, US, but its quite a relief to hear that its uncommon from most of you. If you can take art supplies off of taxes even without a business license, I wonder what are the benefits of getting one then?