Start & Run an Art Teaching Business. Tanya Freedman

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      I hoped that the slogan went hand in hand with my mission statement. My school was to be a place of self-discovery and personal attention, dedicated to all aspects of art, including art appreciation and an understanding of what one can do with various media. I created a simple computer-generated logo of an easel to reflect the informal, fun, and educational nature of the services available.

      Start offering your classes after registering your business’s name, but do not rush into creating a logo before you have had a chance to try the name on for size. It may come to you immediately, or it may come to you in the middle of the night like it did to me.

      The perfect name is an important branding and marketing tool. It is a potential client’s first point of contact. When you have thought up a few names that you like, I suggest you conduct a business name search in the government databases as well as on the Internet.

      Conducting a business name search

      Keep your name short and simple. The shorter the name, the easier it is for potential and current clients to remember. The following list includes some business names I like because they are fun and show what the business is about:

      • Movement from Within — a yoga school

      • Throwing a Fit — a pottery school

      • Your Fired — pottery painting and firing (in a kiln) services

      • Gordon of Eden — gardener and tree doctor

      • Sew What? — sewing-related services

      • Alice Beads — costume-jewelry-making services

      Make sure to keep the future in mind if you plan to use your own name as part of the company name. This may make it difficult to sell the business as a franchise. Also some clients may expect you to always be there, rather than having your staff teach them.

      When you have come up with your company name, if you are in the US you should make a trip to the local courthouse and file for a DBA (Doing Business As). It costs around $50 and is a simple application to complete.

      The government website www.usa.gov will help you get started on all aspects of starting and registering your business in the US. The Small Business Administration (SBA) website (www.sba.gov) will also give you information and tips for registering your business.

      In Canada, if you are incorporating your business, you will need to do a name search. In some provinces you can go online and do a search through the NUANS system (Newly Updated Automated Name Search), while in others you will need to complete a name reservation or approval request form through your local government registry. For more information you can go the government’s Canada Business website at www.cbsc.org.

      Make sure you research your state or province’s requirements for business, including name registration, permits, and licenses. In the US, you will need to contact the IRS to acquire an employer identification number (EIN), which is similar to a social security number for businesses. In Canada, you will need to contact the Canada Revenue Agency (CRA) to acquire a business number (BN).

      Searching the Internet for your proposed business name

      Search for your proposed business name on the Internet and find out if such a company already exists. I am a strong believer that Internet presence is essential to reaching a wider audience in your immediate community and beyond. Having a unique name can only help you in this regard.

      Go to such sites as www.godaddy.com, www.networksolutions.com, or many others on the market and buy the domain name you are interested in now even if you do not plan to create a website yet. It can be as cheap as $8 through some companies. (A large part of Chapter 7 is dedicated to why a website is important, and what work goes into the building and design of websites, particularly for an art school business.)

      Do a search with various key words to see what other websites there are of companies that may have names that are similar to your own. You would not want to break any copyright, trademark, or other laws. Also, look at the results of possible search words your prospective clients or their children might use.

      Making Your Business Legal

      Do some research and speak with professionals such as your accountant, your lawyer, or businesspeople in your social network to find out what you need to do to make your business legal. Get the appropriate licenses and liability insurance for your business before going any further.

      Incorporation and other business structures

      Incorporating a business can help protect you personally from lawsuits and creditors. You will need to research this carefully, and you may want to hire a business lawyer to help you set up your business properly. You may also want to contact a certified accountant to help you with any tax issues that may arise from your company.

      In the US, you can either create your business as an S corporation (“Inc.”) or limited liability company (“LLC”). Creating an S corporation or an LLC can shield you personally from lawsuits and creditors. For more information, go to www.sba.gov as well as www.ccr.gov (the Central Contractor Registration website).

      In Canada, you can either incorporate your business or create a sole proprietorship. If you incorporate your business you will have limited liability, which means that you will be protected from creditors and lawsuits. If you choose to start out as a sole proprietorship, you will have lower start-up costs, but you must be aware that your company will have unlimited liability, that is, you will not be protected from creditors and lawsuits. You can always start as a sole proprietor and choose to incorporate your business as your company evolves.

      In Canada you can also register as a partnership, which means you and your partner will share all the profits and losses of the business. If you decide to take on a partner, carefully consider all the advantages and disadvantages of doing so. Many small companies and businesses have people who run things internally but who may not have the capacity or desire to sell, market, promote, or be the front person, and vice versa. Make sure you and your partner have skills that complement each other’s, and that the business is a good fit for both of your personalities.

      Sales tax registration

      If you plan to sell art supplies, obtain accurate information regarding relevant taxes for buying and reselling goods, and make sure your zoning permit allows you to be selling products from your premises.

      You will have to register for a sales tax number in advance. This applies in all states and provinces that have sales tax. Take the time to learn about record keeping of all incoming and outgoing documents, and how often you must file tax returns. With assistance from your accountant, you should be able to form an organized system, and maintain it with the least amount of disruption to your day.

      To find out more information about sales taxes, go to your local government office or visit its website. There are also many good books at your local library or bookstore that cover the topics of collection and remittance of sales taxes. When in doubt, contact an accountant, who will be aware of the latest tax regulations.

      Liability insurance

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