Selling Art: Hobby vs Business
If you sell art to make a profit, it is a business. If you sell art for fun, it is a hobby.
- Hobby sales let you deduct expenses up to hobby income.
- Business sales let you deduct more expenses.
- Sales tax applies based on location.
- Income tax up to 39.6% applies to business income.
Legal Requirements for Selling Art
To sell art legally, get a business license. This lets you sell art under a business name. You can also use your own name.
- Most artists need a license to sell art legally.
- A license enables selling art.
Tips for Selling Art
- Create a business plan and records to run an art business.
- Promote actively and seek buyers.
- Manage your business professionally.
- Report earnings and inventory properly.
Additional Key Points
- Most artists who sell art are self-employed.
- If your goal is to profit from art, treat it as a business from the start.
- Apply for needed licenses and permits.
- Master pricing and selling to succeed.