Is your biz legit? As an artist (regardless of your specific field) it is easy to let the details of your business fall through the cracks. As your business grows what once appeared to be a minor detail can become a major barrier to your success. But have no fear the “Entertainment Admin” is here to help you get on the right track and make sure you are prepared for success.
The first area of focus – Business Basics 101
Setting Up your Business:
1. Select a name – Be sure to give the name of your business serious thought instead of picking the first thing that comes to mind. Do your research so that you are sure the name you are thinking of is not already being used. Once you’ve made your decision, register your name so that it can’t be used by anyone else.
2. Decide on the structure for your business – The “structure” of your business refers to whether your company is a sole proprietorship, partnership, limited liability company (L.L.C.), or corporation. This decision is not one that should be taken lightly; do some research on each structure and consult a business attorney to help you decide which will be the best structure for your business. Ultimately this decision will determine several factors including: business ownership, how your business is managed, your personal liability for company debts, and how taxes for your business are assessed. Finally, contact your Secretary of State to find out the filing procedures for the structure you’ve chosen. Check out the IRS website (https://www.irs.gov/businesses/small-businesses-self-employed/business-structures) for more information on the various structures.
3. Apply for your business license – In order to do business (make money) legally, you have to have a valid business license. Contact the city or county where your business will be located to find out their requirements for issuing a business license. Usually you will have to complete an application and pay a fee based on your estimated revenues and number of employees.
4. Apply for your EIN – Your Employer Identification Number (EIN) is used to identify your business, much like your social security number identifies you. The application can be done online or over the phone in minutes. Visit the IRS website (www.irs.gov) for Form SS-4 and more details on the application process.
5. Set up a business bank account – A very important step that is often overlooked is separating personal and business money. It may seem trivial now, but your banking relationship is an important step in the growth of your business. Again, make sure you do your homework; research what each bank can offer your business (now and in the future).
Business Identity
Now that your biz is legit – begin to think about your business identity or image. What do you want your business to “look like”? Your business identity includes business cards, letterhead, website, e-mail/signature, logo etc. Any tool that you use to conduct business is a part of your business identity. Image is EVERYTHING; especially in entertainment. If you can, invest in the services of a graphic designer to help you create your business identity. Another option is corporate identity package templates.
However you decide to present your business, make sure you’re consistent. Consider the colors you want to use (your corporate colors) and use the same colors on all of your business materials. (Tip: Look up the Hexidecimal, Pantone, HSL (Hue, Saturation, Luminance) or RGB (Red, Green, Blue) profile for the colors you select. This will help ensure that your various materials can have the exact same color – rather than a variety of similar ones.) A great resource for helping you with color selection and the relative color profiles is the website www.palettebuilder.com.
In addition, make sure the look that you choose will compliment all of the materials you plan to use. For example, your corporate colors and logo should look just as good on a shirt as it does on your letterhead. Make sure the design and colors are simple enough to translate well online, in print and on any promotional items you produce.
Documents and Forms
As the saying goes, “the devil is in the details”. To take it a step further, the details are in the documents and forms. Getting your paperwork in order up front can save time, money, and your sanity in the long run. (You are in it for the long run, aren’t you?) Take the time now to jot a list of the documents and forms you think you’ll need. (Don’t worry if you can’t think of everything – some documents you may not develop until the need for it arises. The point of this exercise is to take care of the basics.)
Contracts are a touchy subject but are a necessary evil in business. What types of agreements will you need in the operation of your business? Begin to jot these down also while you’re working on your documents and forms. Look for templates and samples that you can use as a foundation. Then, consult a business and/or entertainment attorney to help you customize the contracts to meet your needs. (It is definitely a worthwhile investment to make sure your bases are covered before an issue arises.)
Don’t forget existing forms that you may need to comply with federal, state and local laws. For example, if you work with independent contactors frequently you my want to pull w-9 forms from the IRS website and keep it handy. Appropriate copyright forms from the Library of Congress website (http://www.copyright.gov/) may also be helpful to have so you can protect your intellectual property.
Kim Fennell “supports the success” of entrepreneurs, small business owners and creative professionals as principal of Entertainment Business Support and founder of Biz Savvy Artist. Since 2003, she has provided administrative support, event support, and project management to clients in a variety of industries. Visit www.entertainmentbizsupport.com or e-mail kfennell@entertainmentbizsupport.com.