ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS MM Creative Business.
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Transcript of ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS MM Creative Business.
![Page 1: ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS MM Creative Business.](https://reader036.fdocuments.in/reader036/viewer/2022081816/5513bbf85503463a298b472e/html5/thumbnails/1.jpg)
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS MM Creative Business
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
Focusing on the way you think about your arts practice vis a vis business, not just a “hobby”
What is a business? Why set up a business? Should I be in business?
What will my business be?These considerations need to be made in relation to my art making,financial considerations and the obligations required for establishing and running a business
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
So what is a business or in the case of arts practice “professionalising” what I do?
Making a decision to practice full time and give up my day job or combining other work with more time spent on arts practice
Setting up a “structure” that means that I can maximise the tax advantages and make deductions for materials, resources, rent etc (notwithstanding whether you are full time or not)
Determining to take the plunge and putting my work out there, both in terms of marketing and competing with other artists
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
NAVA describes a professional artist as:
“The term professional is intended to indicate a degree of training, experience or talent and a manner of working that qualify artists to have their work judged against the highest professional standards of the relevant occupation.”
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
If I am a hobbyist am I a professional? YES- you can be “professional” in your approach
as described by NAVA but you mightn’t be taken that seriously by the art world- it’s all a matter of the “aims” your work
Tony Tuckson a renowned Australian artist always held down a full time job as a gallery Director, but he was certainly a professional- however the tax dept would probably have viewed his art making activity as a “hobby”.
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
What does this mean for other arts or creative ventures?
“Professional Standards” may not be judged by an individual of a group but by the “market”
So in some cases judgement will be by the “market” Issues of standards will be measured by the market in
terms of demand for the product/s Some creative ventures will however try to balance
“standards” or try to balance their preferred work with more commercially viable products
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
What does the law (essentially the tax office) say?
http://www.artslaw.com.au/articles/entry/taxation-of-professional-artists/
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
So what should I do?
Legal and tax fundamentals Becoming a legal entity, eg Registered
Business name, Forming a Private Company, Partnership, Cooperative
PAYG implications ABN requirements
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
AND……
GST requirements Intellectual Property/Copyright
Insurance- Professional and Public
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
In the case of a professional artist, actor, musician this may also involve taking on an agent or gallery which will be part of the business mix. This has other implications such as paying commission on work acquired or work sold, as opposed to a DIY approach
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
Steps I need to take to “professionalise” and set up a business remembering that there are different models
1. Make a decision!2. Do a budget- what will it cost me for the initial
set up and at least one year of operation3. Get an ABN and in the first instance do not
apply for GST unless you plan to earn over $75,000 from your art and other allied paying jobs (ref case study)
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
4. Decide whether to use your name or a business name, if you want to use another name this must be registered in Victoria through consumer affairs
5. Get a quote for various insurances, public liability, professional indemnity, sickness insurance- think about risk
6. Work out a marketing plan including the development of a website and data base so you tell the world that your art is for sale
7. Choose an appropriate portal to showcase your work ( Own website, Facebook, Ebay, Etsy)
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
The beginnings of an on going and sustainable life business
A vision for my work (s), product, products Preliminary budgeting to achieve immediate goals Planning for the day to day management of your
business Time out for longer term planning (you have to dedicate
time to work “on” your business not just arts practice Maximising opportunities the internet offers through
social networking, linking and website optimisation Thinking about product development
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
Can I be have a business and claim business deductions as well as deductions for an agent or gallery dealer?
YES, you can but you still must show that you have “set up” a home office or studio, that relates to your business
If you don’t do this you may be considered just a “casual contract employee”if you are spending say most of your time teaching or working in some other job or jobs.
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
National Association for the Visual Artshttp://www.visualarts.net.au/ business.gov.au (General Information about establishing a business)http://www.business.gov.au/Pages/default.aspx Grants for Business Developmenthttp://www.business.gov.au/businesstopics/grantsandassistance/Pages/default.aspx Business Victoriahttp://www.business.vic.gov.au/BUSVIC/LANDING/SEC01.html Arts Law Centre of Australiahttp://www.artslaw.com.au/articles/entry/taxation-of-professional-artists
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ESTABLISHING MY ART or ARTS PRACTICE AS A BUSINESS
Public Law Interest Clearing Househttp://www.pilch.org.au/
Australian Tax Officehttp://www.ato.gov.au/
Arts Victoriahttp://www.arts.vic.gov.au/Home
Australia Councilhttp://www.australiacouncil.gov.au/
Business Mentorshttp://www.sbms.org.au/
Skills for Growthhttp://www.sbms.org.au/content/documents/Skills-for-growth factsheet_April09_3.pdf