Does Selling Art Count as a Business?

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.

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