Collecting sales taxes is one of the most confusing parts of running a business. And you should be collecting sales taxes if you sell a physical product (like . . . oh, I don’t know . . . art!).

But your life will be a lot easier if you take a class. Or two. Or three.

First, make sure your business is registered with your state. In Colorado, this is through our Department of State either by registering as an LLC or corporation or reserving a name for a sole proprietorship.

Next, you’ll need a sales tax license. In Colorado, we apply for a license through the Department of Revenue.

Colorado is a “point of delivery” state, meaning that we collect taxes based on the locations we have in common with the recipient. So, if I ship something to Durango, I only charge State sales tax. If I ship to my hometown of Golden, I charge State, City, County, and a special Denver-area tax.

It’s enough to make a person go mad! Instead of pulling my hair out*, I sought help.

Find a class

Check with your state and municipal departments of revenue for free tax classes. A good tax class will tell you how to 1) collect taxes and 2) submit them to the government entity.

Moreover, you will make contacts in the revenue offices that can help with any future questions.

I can only speak of my experience in Colorado. Your department names and form requirements might be very different.

*I’m still tempted to pull my hair out from time to time, but I know people are there to help if I need it.

Just because you’ve started selling your art doesn’t mean you have a legitimate business. You have to get some things in order.

Here’s a list of the basic legal entities you should be set up with. The names and titles of your state’s departments may vary from those below, so I’ve showed you how to search for them. The good news is that almost every piece of information you need will be online.

Your state’s department of state
For: registering your art business
Google this phrase: register business [your state] to find more

See also: Selecting the Legal Structure for Your Business
a resource from the Small Business Administration

Your state’s department of revenue
For: Sales tax registration and filings.
And: Business tax and estimated tax filings.
Google this phrase: sales tax license [your state]
Or: business tax filings [your state]

Your city and/or county department of revenue
For: Local tax, including sales tax, filings.
Google this phrase: sales tax license [your town]

Internal Revenue Service
For: Federal business and personal tax filings.
And: Federal Employer Identification Number (FEIN)
Use for your business in place of your Social Security number.

While most everything is online, I have found that in-person training is well worth the effort.

I have attended free sales tax classes at both the state and the local level. Sales tax is one of the most confusing parts of my business. Attending the classes didn’t clarify things completely, but it got me started and also gave me contact names for when I had questions. (I’m envious of those of you who live in places with no sales tax!)

Locate and then search the above sites. Take advantage of any free training they offer.

I’m following up on the comments from my last post urging (again!) the use of credit lines wherever you post/show your art.

To add a quick © to your information.

© On a Mac

Hold down the OPTION key and type the letter g.

©On a PC

If you use Windows, you must use the number pad to create special symbols. You can’t use the numbers at the top of your keyboard. So . . .

To add a © on a PC, hold down the ALT key and type 0169 on your number pad.

Update: You can also use Ctrl+Alt+c on a PC, which seems to be the easiest way (thanks, Michael!).

Guest Blogger: Harriete Estel Berman

In her article Break the Rules, Alyson Stanfield said: “Don’t be afraid to break the rules, ignore the rules, or make up your own rules—especially when something isn’t working for you.”

Well Alyson is right and her comment hit home because of a recent experience. Let me explain.

I was invited to lecture at the Loveland Museum in Loveland, Colorado in conjunction with an exhibition including my work titled Integral Elements. The Museum offered to pay my travel expenses and a modest honorarium arranged through emails and phone calls months prior to the exhibition. We were all in agreement.

© 2000-01 Harriete Estel Berman, grass\’gras\ (detail). Over 32,400 individual blades of grass cut from pre-printed, recycled steel, 5.5" high x 9’ long x 9’ deep.

As the lecture date approached a contract arrived in the mail, NINE PAGES in small type. Yes, 9 pages plus a cover letter instructing me to return a signed copy! It was the standard contract from the City of Loveland, the governance structure within which the Museum operates. However, after several readings, I realized that only the first two paragraphs on the first page applied to my circumstances, along with a short addendum (of a few sentences) stapled to the back.

I won’t describe the whole contract, much of it too convoluted to comprehend. Among the many irrelevant items, some paragraphs required that I “certify compliance under penalty of perjury” with items or clauses referring to an array of Federal, State, and local regulations and ordinances. It even required that my signature be notarized—an expense I did not think was necessary.

What to do? It just seemed overwhelming partly because I did not understand it all. Ultimately, I could not bring myself to sign the contract. I decided it was time to “break the rules.”

I called up the City’s public art/business services manager and the museum staff. My lengthy voice messages said (in no uncertain terms, though with slightly quivering voice) that I could not sign the contract. Continuing . . . that the clauses in the contract were inappropriate and irrelevant, that I would not pay to have my signature notarized, and more!

However, I also made it clear that I would still come to the opening, give my lecture, and that they could decide to pay me or not. Of course, I wanted to be paid. And with or without a signed contract, I intended to fulfill my verbal agreement with the museum staff to give my lecture and participate in the programs. No contract was going to stop me from doing the best job that I could do.

The reality: I was the first person to make such a fuss!

The City personnel initially told me, “This is our standard contract. We’ve been using it for years and no one else has complained.” That was NOT a good answer. I still refused to sign, but continued plans to participate.

Guess what. Upon my arrival in Loveland, the museum staff told me that my protest finally changed the speaker contract. They had been trying but unable to change it for years. But the City attorneys had listened to me and responded!

The outcome: 1) My worry that the museum staff would be mad at me for refusing to sign the contract was unfounded; 2) The City attorneys drafted a replacement one-page contract; 3) The museum staff was quite grateful to have a new simple contract more suited to their needs; and, best of all 4) We are all happy! Win-win-win.

Next time you run into a difficult situation, don’t be afraid to take action and be the “maverick.” Use your best judgment along with carefully justified reasoning to determine your course. And always live up to your agreements while continuing to communicate all the way.

Harriete Estel Berman is an artist living in California. She is known for using recycled metal in her sculptures that are often charged with social commentary and, simultaneously, filled with humor.

She is also the author of the Professional Guidelines for Artists and the blog askHarriete. If you’re near Houston or CAN be near Houston, Harriete encourages you to check out the Professional Development Seminar on March 10, 2010. It’s organized by the Society of North American Goldsmiths, but is open to artists in all media.

Deep thoughts happen even on Christmas Eve!

How do you handle it when you think another artist is “stealing” your ideas?

Caroline Douglas, The Chariot Race. Ceramic sculpture. ©The Artist

John T. Unger is an artist based in Michigan who uses scrap metal or his creations. He is perhaps best known for his Great Bowls of Fire: sculptures that double as firepits.

Yesterday, John was my guest on a call on which he gave us insight into a copyright lawsuit that has been brought against him and how it might affect other artists. You can listen to that 30-minute call here.

John T. Unger, Waves O' Fire. Recycled steel. Design ©2007-09 John T. Unger.

Neither John nor I are attorneys, so this recording shouldn’t be construed as legal advice. You should always consult an attorney for your individual situation.

MENTIONED ON THE RECORDING

1. John’s legal defense fund page outlines the case. You can read the document filed against him, which he could not discuss on the call.

2. Myows is a copyright management application set to launch November 9.

3. DefendArt.org is a holding spot for a future legal defense fund or foundation for all artists. It’s John’s way of paying it forward so that other artists will have the help he couldn’t find.

4. You can help John by buying his art or just giving an outright donation. Read more.

Please tweet this and pass it on to other artists. It’s too important to ignore and think it will never happen to you.

Artist John T. Unger – creator of copyrighted sculptural Artisanal Firebowls – is getting an unwanted education in copyright law. His court case could have far-reaching intellectual property implications for the original work created by other artists and creative entrepreneurs.

Join us on this special call to find out how it could affect you.

A Conversation with John T. Unger

©Preston S. Cole, TAPS Photography

Thursday, November 5
4pm ET, 3pm PT, 2pm MT, 1pm PT
30 minutes

FREE

As John explains it, he has had to spend over $50,000 so far to defend himself against an imitator who has sued to have John’s copyrights revoked. Read the details.

During this 30-minute call, John will quickly state the facts of the lawsuit against him and describe how the outcome could affect the rights of other artists in the future.

PLEASE NOTE: If you’d like to help John, but can’t be on the phone call, you can buy his art here or donate any amount here.

To listen to this conversation, all you have to do is sign up. Upon registering, you will be taken to a page with the dial-in information. You will also receive this information in your email inbox.

While this is a complimentary call, you will incur regular long-distance charges.

In a comment on Shine the Spotlight on Someone Else–which mentions using another artist’s image along with complete credit on your blog–Lesley Atlansky wrote:

So an artist wouldn’t mind if I posted an image of their work on my blog (in a post about their work) as long as I credit them and note the copyright of the work is theirs? It seems like a legal gray area, like I wouldn’t be able to put an mp3 of a Depeche Mode song on my blog when talking about how much they inspire me if I simply add a copyright symbol by it.

I think this is a great question and a legitimate analogy to music. Please keep in mind that I’m not an attorney, so I will not address the “legal gray area.” I do think, though, that using the entire mp3 of a song (a complete work that is fairly easy to download and copy) is quite different from using a small, low-resolution image of an artwork.

©2009 Lesley Atlansky, Like Petals on the Earth

What I’m talking about here is giving someone free publicity. Put aside the law part for a minute.

IF you write something nice about someone . . .

And IF you have a decent blog that doesn’t contain objectionable content (sexual, political, or something else that might offend) . . . any artist in his or her right mind SHOULD be thrilled with the mention.

Newly added: Clarification since I was apparently not making myself clear: This post was written with regard to using an image to go along with something nice you’ve written about an artist’s work. It is not intended to refer to art used to decorate someone else’s post. I also made it very clear in the previous post that the work should carry complete credit–including the © notice. I apologize for misunderstandings.

You are taking an image that is already available on the Internet (presumably you got it from the other artist’s blog or website) and sharing it with your readers.

Reread some of what I wrote above. If your art appears on a site that has objectionable (to you!) content, you’re not going to be happy even if full credit is given. The reverse is also true (if you feature the art of someone who objects to your content). I’m thinking of the recent suit that Jackson Browne won against the John McCain campaign, which used his song without permission. Since Browne is a liberal activist, he might not have sued had Obama done the same thing, although I certainly won’t speak for him.

If your site is a fairly innocuous artist site and all you’re trying to do is promote the art of another artist, there is no reason in the world that you should worry about using an image along with your post. If you think there is reason for anyone to object to your content, it’s probably best to get permission ahead of time. And always remove something if requested. The fight isn’t worth it.

Some years ago, I found that artists were a little touchy about allowing use of their images. Today it’s different. Only the uninformed would feel that way. Every artist whose work I feature is THRILLED beyond belief. They recognize the value of free publicity.

By the way, because of the nature of this question, I asked Lesley for permission to use her work here. I don’t usually ask! But I do send an email informing an artist that I’ve used one of their images–just so they can do the happy dance. More clarification is needed here, too. I have a prior relationship with the artists whose images I use. It was irresponsible of me to suggest that I use random art to “decorate” my newsletter and blog posts. I know the people whose art I am using and I send them an email telling them that their art will appear.

If someone uses your art without credit

If someone uses your art without credit let them know you are displeased without threatening them. Send them an email saying “Hey, I see you liked my work. I sure would be happy to thank you for featuring it if you would just give me credit. Please provide this credit line and link and we’ll be cool: . . . “

(As an aside, about 5 or more years ago I made the gigantic–ha!–mistake of using someone’s image in a newsletter without getting permission ahead of time. I got a nasty note from that person as if I had done them irreparable damage. They demanded that I should have asked permission. I apologized profusely and then quickly removed the image from the online version. I’ll be darned if I was ever going to feature that person’s art in any way, shape or form. Please see my clarification above. It applies here, too. I had met this person face to face. But it was the single time that I forgot to email someone and tell them that their work would appear.)

Make sure you’re giving credit to yourself

Incidentally, I think you should also be crediting your own work whenever you post it. This is a huge failure of most artists. Sure, it’s your blog and most people will correctly assume that the work is yours. But if it’s their first visit to your blog, having your name under all of your images will help establish name recognition. I like the way Brian Kliewer does it.

Incidentally, Brian’s use of the © notation is correction. It’s © followed by the date, followed by your name.

Related

See Consider It a Compliment (but protect your images as best you can)

Let’s say you take your work to a venue (gallery, home, business, etc.) because someone has asked to see it in person. After you arrive, you’re asked to leave your art at the venue so that other people can see it. It’s fine to do this as long as you have something in writing.

Always get your art business transactions in writing! In this scenario, while you didn’t exchange money, you did agree to leave a valuable asset in the care of someone else.

The piece of paper (which might be called a loan agreement) you draw up should state your name, the title, dimensions, and value of each piece you’re leaving. Your agreement should also be clear that you retain ownership and copyright and that the venue agrees to insure the work while they have it in their possession. The art should not leave that venue without your written consent. It would be terrific if you have a photo printout of it–either attached to the document or printed on the same page.

You could also add a schedule for pickup–the deadline or date when you would like to retrieve the work.

Include a space on the document for both parties to sign.

Consider creating this document ahead of time and taking two copies with you so that you don’t have to hunt down a copy machine. You would then have two originals–one for you and one for the borrower.

What else am I forgetting?

(Note: Please consult with an attorney for your specific situation.)

“Hot Trends in Art Licensing & the PR Tactics to Turn Up the Heat!”
Presenters: Jeanette Smith, J’net Smith Inc. and Regina Cooper, freelance editor/PR consultant
Date: April 30th, 2009
Time: 10:30 am to 12:30 pm (Pacific Standard Time)
Price: $60.00

For details and information on a variety of upcoming licensing classes you can take from wherever you are in the world, click on Continue Reading.

Taught by Jeanette Smith, DILBERT™ Marketer and Regina Cooper, former Senior Editor, Art/Home/Brand/Fashion categories of License! Global Magazine, this class will explore how to pinpoint the current trends in Art Licensing, so you can follow the flock or skip ahead to the cutting edge. We have gathered data and insights on trends from artists, publications, manufacturers, and retailers in order to give you the most up-to-date information on the state of art licensing today.

Then after talking trends, we will delve into the details of PR tactics that you can use to get the word out about your art, designs and licensing deals! We will address:

• exactly how to approach publications
• who to target and why
• how to write the most effective press releases
• how to use multiple press strategies for maximum coverage

Learn what you can do to increase your business potential today! The presentation will be provided in PDF format and the TelEvent will be a combination of live phone and screen-sharing. Register here.

The Professional Creators’ Licensing Series ‘OPENING DOORS AND CLOSING DEALS’
Presenter: Jeanette Smith, J’net Smith Inc.
Dates: May 5, 6 & 7, 2009
Time: 10:30 am to 12:30 pm (Pacific Standard Time)
Price:  $100 for all four classes (save $40 over individual pricing, or if you are interested in just one topic see individual pricing below)

PCLS-1: Introduction to Art Licensing & PCLS-2: Licensing Presentations & Websites – May 5
Have you ever wondered how creators’ get their art on all those beautiful products in those small boutiques and huge retail stores? Artists, Illustrators, Cartoonists & Graphic Designers — this is a fast-paced introduction to art licensing that will show you how to begin to expand your creative and income potential.

Topics include: What exactly is licensing and how does it work – Types of licensing – What you MUST know about the retail marketplace BEFORE you start – Protecting your rights – Royalty rates  – Artist requirements -Agent services – and much more!

Learn how to create presentations that will sell your art and collections to manufacturers and retailers. This online course is filled with details and examples that will enable you to produce scintillating presentations and web sites that will get you noticed, clinch the deal, and put money in your pocket!

Topics include: Know your Audience – Branding “Yourself” – Preparing Materials – Productive Web Sites – Online Portfolios – Ask J’net Q & A – Get Answers to YOUR Questions

Join us on Wednesday, May 5th, 2009 — 3:00 pm – 5:00 pm PST for this informative and fun TelEvent! (Telephone and/or live screen-share. Long distance charges may apply.)
$60.00 fee – Register here

PCLS-3: Licensing Sales Techniques – May 6
An absolute MUST for artists struggling with exactly how to go about licensing their Creations. Learn the most successful strategies for approaching manufacturers and retailers; what they expect and how to give it to them; and how to go about creating and closing the sale! This class also discusses how to find reputable agents and what to expect. With low-cost and highly productive techniques, this step-by-step process has been designed to help you take your art from portfolio pages to licensed products on the retail shelves.  
Topics include: Researching Manufacturers – Marketing Plans – Strategies and Timing – Sales Calls – Public Relations – Agent/Artist Relationships – and more.
Don’t miss this course, unless you have more sales than you want.
Join us on Wednesday, May 6th, 2009 – 3:00 to 5:00 pm PST for this exciting TelEvent (Telephone and/or live screen-share. Long distance charges may apply.)
$40.00 fee – Register here

PCLS-4: Licensing Negotiations and Contracts – May 7
This is a very HOT and IMPORTANT topic today. Everyone from artists and illustrators, to graphic designers and cartoonists need to learn how to negotiate and navigate the all-mighty contract with confidence. This course shows creator’s how to make the vital business decisions that go into each and every licensing contract, from royalties to product descriptions, exclusivity to protecting creative control, and other critical terms. This course also deciphers the legalese by explaining what contract elements are required and what they mean to you.  J’net is not a contract lawyer and does not give legal advice, but after two decades of negotiating hundreds of contracts, her experience and perspective is an invaluable asset that no creator should be without.

Topics include: How to make licensing business decisions and have them reflected accurately in your contract -Tools to keep contracts moving forward  – techniques…when to stand up and when to back down and WHY – Recognizing contract “tricks” that some try to pull on novices – What to do after the contract is signed Negotiation  – and more. 

 This information can easily save you a fortune in future revenues. DO NOT sign anything until you take this course!

Wednesday, May 7th, 2009 – 3:00 pm – 5:00 pm PST for this important TelEvent (Telephone and/or live screen-share. Long distance charges may apply.)
$40.00 fee Register here

What people are saying about Jeanette’s courses and the Professional Creator’s Licensing Series:
“Every artist should take advantage of this information, which is not readily available elsewhere.  If you are an artist that’s truly serious about your career, get yourself educated and let J’net share her knowledge with you!” Maria Brophy

“If the future of communication is content with purpose, then give J'net five stars. J'net's information is very specific. Clearly laid-out to understand, well-delivered, packed with real truths to act upon. A winning combination! Stan Tuscon

Jeanette Smith, former Vice President United Media and business powerhouse behind the global multi-million dollar Dilbert™ brand, offers the most comprehensive and no-nonsense courses on Art Licensing available online today. With more than 20 years experience, information and contacts in both the trenches and the boardroom, hundreds of deals in dozens of countries, working at all levels of the licensing and marketing industries and her impeccable reputation, she offers detailed and invaluable information to those she teaches, coaches and consults.  She spikes her presentations with real life examples and relevant anecdotes, shedding light on this complex industry, to make it understandable and approachable. And each course includes techniques and templates, so you can immediately start applying what’ve learned.  J’net has helped countless Creators achieve their dreams and business goals in a way that’s fun and motivating. If you are ready to build your art licensing business and increase profits, especially during these difficult times, then these very unique courses are for you.