To Fly Solo or Incorporate? Legal Checklist Part 4

As I was setting up to be a vendor tonight at the Create Mixed Media Retreat I was looking around the room admiring all the amazing art that was being unpacked. Somewhere in the back of my mind a little voice was asking whether they were incorporated or a LLC or perhaps a sole proprietor? Sorry, my mind just wanders off into legal land sometimes. I would have loved to take a poll of the artists and vendors to ask what type of legal business structure they had chosen. I would be willing to bet that many of those selling there wares had not made a choice but had simply begun operating as a sole proprietor.

It is important that you choose the type of business entity you will be running. One word sums it up nicely LIABILITY. You choose the type of business to form based on two factors: tax liability and personal liability. Tax liability is simply the amount you will have to pay the IRS in income taxes. (You should have learned about this from your visit with a CPA. It is not too late- go see a CPA for tax advice.) The second type of liability is personal liability which simply put is what assets creditors (those the business owes money to) can get from you and what can you be sued for if someone is injured.

As a sole proprietor you have zero protection. This means that your personal assets like your car and home are not protected from creditors or law suits. This is really important especially if you teach classes where there is the possibility of an injury. You might be able to purchase insurance to cover these potential issues and I would encourage you to look into liability insurance. The good news for a sole proprietor is that your business earnings just go right onto your personal income taxes. Easy!

A LLC stands for a limited liability company. This type of business for allows you some protection in limiting your liability.  It is the most common type of business for recommended by professionals like CPA'S and attorneys.  The paperwork is simple as is the book keeping. You can have business partners too. Talk to your insurance agent about having liability insurance for your business. The information is free and a policy could be very affordable! Taxes are slightly more complex here but manageable.

Of course you could just go for it and incorporate! This costs money in state fees and requires annual document submissions to the state and record keeping. Go to CA.gov for loads more informaion. Use the California government websites to give you an idea what you need to do to incorporate and what type of business for is right for you!

Spend some time researching your options and keep in mind that you can always change your business form! We are working our way through the checklist and next week I want to spend some time talking about partnerships and having a partnership agreement.

Feel free to ask questions and I will do my best to point you in the right direction!

Tara

Time for a professional!: Legal Checklist Part 3

By a show of hands how many of you have taken positive steps towards reaching your goal of owning your dream business? I see a few hands are still not up. It is not too late! We know you have an idea or you would not be here. Most of you have a name for your business so get your research done and get ready for the next step. This next step sounds scary but I promise it will be ok. You are about to make your first monetary investment in your success. It is time to make an appointment with a certified public accountant known as a CPA. This might be the person that prepares your taxes or you may need to find someone new. Your CPA should service small businesses on a regular basis. You will need to rely on your CPA to help you decide what legal form your business should take. Ask around and get references!!

Why do I need a CPA to advise me on my business? Shouldn't I hire an attorney? Right now you need financial and tax advice. An attorney cannot offer you financial advice. A CPA can talk to you about your personal tax situation and discuss different business set ups that will be comfortable for you. You also need to set up a bookkeeping system. This can be a simple thing so do not panic.

For a new business the most important thing for you is knowing how to track your business expenses. It is easy to overlook things like mileage on your car which at .51 cents a mile add up quickly.  Only your CPA can tell you what records you need to keep and what you can use as a tax write off. You must capture ALL of your expenses as most new business operate at a loss. This appointment with a CPA will pay for itself almost immediately! You can expect your consultation to cost between $150 and $300. You will save more that $300 per year in deductions you never even thought about. Painless!!

Make your appointment with a CPA and get ready for next week when we talk about what type of business forms are recommended from a legal viewpoint. Are you looking to set up a partnership? Be a sole proprietor or go large and incorporate? Part four will be an overview of these different types of business set ups and loads of resources to help you decide what is best for you and make it happen! Stay tuned we are just getting to the good stuff.  See your CPA and avoid the mayhem at tax time!

Tara

Legal Checklist: Finding a name!

Naming your business is your first legal decision! So now you have polished up your idea and you are ready to find that perfect name for your new small business. I see loads of really cute and funny or clever names out there but rarely does the chosen name tell me anything about what they do. Consider a business name that gives customers at least a hint about what you will be selling. For me, Lulu Max is not just my business name she is my alter ego. My name was being used for my law practice or I would have just used Tara Wilson Art Jewelry. Instead I used the names of my chihuahuas Lulu and Max to create Lulu Max Art Jewelry.

Now that you have a few ideas for potential names it is time to do a bit of research. Are you sensing a pattern yet? At each step of the checklist you will have a bit of homework. Sorry- I know we all hate homework. You could pay someone to help you start your business and do the research but it it not necessary. (Not to mention expensive.) You can do this!

First, you must make sure your chosen name is not being used. Start with a simple Google search of the name and see what pops up. There should be nothing similar popping up on Google. If you get hits on the name go back to the drawing board. Once you pass the Google search without finding your business name it is time to proceed to the California state website at Governor's Office of Business and Economic Development. There is a ton of information including links to check and see if the name is incorporated in the state of California. The site is complex so give yourself time to explore it fully and take advantage of all the amazing FREE information that is offered. They use checklists too which I love.

Even when you have carefully researched the availability of a name it is possible that the name you have chosen is already taken or a copyrighted phrase. Be prepared and have a "plan B" name. If you are contacted in any manner by a company or individual claiming that you cannot use your chosen business name do not ignore the request. It is time to seek legal advice immediately. There is always risk in starting a small business. Good research will help you avoid some of the risk so take the time and do your homework.

FInding the perfect name for your business is challenging but it is your first step is creating your brand and launching your idea! I would love it if you would post your business name and a brief bit about what you sell in the comments!


XO,
Lulu- I mean Tara

A Head Full of Ideas! The Legal Checklist Series #1

It begins with an idea. Perhaps a head full of ideas. Or in my case simply having more inventory of supplies than one person could ever use. So with a surplus of art materials an idea was born. I should sell the excess and keep my eyes peeled for a bulk lot great buy when I am out hunting for treasures. So, with my good friend Crystal Basica and a few hunting tips a business selling vintage mixed media art supplies was born! Lulu Max Art Jewelry now had a companion in Serendipity Salvage!

This is the first blog post in a series I am doing based on a speech I gave at Launch your Creativity- your legal checklist for starting your business! Perhaps you have always wanted your own business or maybe you are just looking for a way to supplement your income. You have an idea or a spark of an idea but don't know hot to begin.

Time to do a little research. Jump on your favorite search engine ( google) and search for your idea. You ned to see if it is already being done. Ask yourself:

                         1. Are they doing it well?
                         2.  Where are they doing business?
                         3. How is my idea better or different?
                         4. How much are they selling theirs for?
                         5. Will I be in direct competition with the sellers
                             I have found?
                         6. Do I need a new and fresh idea?

Now time for a little product research. Jump on Etsy and any similar online seller of goods that might carry a product like the one you have in mind. How are they presenting the item? What is their price point? How is the item tagged? ( This is how a vendor uses words to list an item so buyers can find them.)

Time to fine tune your idea! This is the beginning of developing your item. Begin with a product you are passionate about. Now that your idea is complete you will need a name for your business. If possible the name should tell customers something about what you do and who you are.

Next post- How to find out is your proposed name is legal and available! This series will be posted every Thursday for the next 15 weeks. Stay tuned and take that first step! You can do this and make your dreams of your own business a reality! Please follow my blog so you do not miss a step and share with your friends on Facebook!

xo,
Tara

Chicken Feeders and Briolettes!

Glitterfest Spring 2012

What do chicken feeders, Glitterfest, briolettes and junking have in common? Inspiration! Read on to see what inspires me to buy crazy vintage items.

The show is over and it is time to recharge my creative batteries and put on my Serendipity Salvage hat! As always, Glitterfest wan an amazing show. It is such fun meeting other artists and loads of new customers. I, of course, had time to squeeze in a little shopping.  There was such a room full of pretty I could barely stand it! I bought a purse - no a work of art- from Lori Gutierrez. She hand painted a pin up girl on an old army canvas bag that was embellished with trims and bling. I adore Lori and ALL of her amazing art! I have several pieces of hers that inspire me every day in my studio. 

This past week was spent getting ready for a show at Brea Bead Works. Crystal and I packed up all our treasures and headed off to Brea for a trunk show with our Serendipity Salvage hats on.  So a big thank you to all of our friends and customers that came out to see us! I managed to do a bit of shopping at Brea Bead Works. I purchased the cutest little carved coral roses for a little project I have in mind for fall. I also picked up a few wire wrapping supplies. Such an amazing bead store. They are well stocked and have a huge selection of items. They carry everything from semi precious briolettes to  sheet metal.

I took a look at their class schedule and was really impressed. Offered is a wide variety of projects in both style and skill level. I am really trying to add a new skill each season and this time around I am intrigued by seed beads. I know- I said it seed beads. I have always appreciated the medium but I have kept my distance. So I think I will dip my toe in the water with a basic project and class.

When I need to recharge creatively I often wonder through an antique store and try and focus on items I find appealing. I look at the shapes or the colors or maybe the way it catches the light. Perhaps there is a quality I want to replicate in a jewelry design. Or maybe I do need the antique chicken feeder I purchased last week. Ok maybe I have a problem I really bought 3 antique bird feeders. I have learned that if I am drawn to an item I will find a way to use it and give it a new life.

I try and write about inspiration but tonight I am wondering what inspires you? How do you recharge your creative side? I hope you will leave a comment and let me know what you do to keep the creative juices flowing. Tell me about your chicken feeders and briolettes.

Tara

Making lemonade is not enough!

This little rhinestone embellished tiny perfume bottle will be coming to Glitterfest! The theme this time around for me is old Hollywood glamour! I have been having so much fun giving new life to rhinestones. I mean serious rhinestones. The more the better this time around. My muses have been Marilyn Monroe and Audrey Hepburn. I was thinking about what they might be wearing in 2012. Why save rhinestones for that little black dress? I say why save the fun stuff for a special occasion. Everyday needs rhinestones! My goal was to see that each piece has a touch of that old style glamour and a bit of whimzy. 

I have needed a bit of a laugh these last few months as there has been one challenge after another.  I have tried to keep this blog about inspiration and have been very focused on keeping inspired artistically personally. I have been introspective lately and this has actually helped to put more of my feelings into my art.  As I do in my life, when something is serious I try to find a bit of levity in the situation. I have tried to do this in each piece of jewelry this season. Each piece is meant to have that little something to put a smile on your face. 

While I might have been quite on the blog front I have been quietly working like crazy. I was forced to take a break this week due to a nasty kidney infection. So as I am resting, ( when I should be frantically getting ready for Glitterfest) I thought  I would catch you up.  I am choosing to not panic over all the partially finished pieces on my work table. Life always gives us a choice. You can choose to give in to life's challenges or you can power through and find that hint of a silver lining. The old saying goes "when life gives you lemons make lemonade".  Not good enough! I choose to make a lemon meringue pie and I know it will be delicious!

I will post a few sneak peeks at the goodies I will be bringing to Glitterfest March 10th. If you have not been to this show it is a must. It is a beautiful mixed media art show filled with amazing and talented artists. I am truly honored to be a part of this event. Glitterfest is March 10th at the Elks Lodge in Santa Ana. Please visit Glitterfest.com for all the details. I hope to see you there!

Tara

Time Flies When Your Having Fun!

This is the focal of a brass cuff  that I made as the class sample for Whimzy. I wanted to incorporate as many techniques as possible into one project. Creating a class project is a challenge because it is not enough to design something pretty. Students want value for the money they spend on a class. So you have to come up with something that is jam packed with skill building and techniques.

This cuff incorporates 3 techniques for adding patina, 2 techniques for distressing brass and other metals and 3 techniques for adding color. That just gets us started. Then we punch holes in metal and set a rivet by hand. And no project would be complete without adding some bling. Their are kits for each student with enough brass pieces to play with to try each technique we explore and a number of color possibilities. The combinations are endless.

We will work with a number of products that are not traditional for jewelry makers. All the more fun I say! I love adding color with alcohol inks that are usually reserved for scrap bookers. You will be pleasantly surprised at all the things you already have in your craft stash that can be used in your jewelry making. For this class you will not need to purchase a thing. I supply all the materials and pieces for the cuff and plenty of extra goodies to make it fun! I hope you can join me at Whimzy April 28th in Tustin. Perhaps a Mothers day gift or just a treat for yourself!

Please visit www.vintagewhimzy.com for all the details!

Now I have to get back to creating my spring line for Glitterfest March 10th! I have been having so much fun hunting for Serendipity Salvage and making jewelry the last couple of months have just flown by.

All the best!
Tara