Art Problems: WTF Is an A-Corp?

"An Artist Corporation or A-Corp is a new type of business structure for artists in a bill introduced in the Colorado state legislature, first proposed by entrepreneur Yancey Strickler. To understand why it's relevant to you, we need to back up a little. As an artist, you are a small business owner. You choose what type of business you'll operate when you start making money. For most visual artists, this means filing taxes as a sole proprietor, which means all you need is your Social Security number."

"All require lawyers and administrative work to form, which may be worth it, if you want the benefits. That's the main problem the A-Corp solves. It allows you to create a business specifically designed for creative people without hiring a lawyer. All you need to do is fill out a form. Easy! Now, you're probably wondering why you need a special business designation in the first place, if the sole proprietorship was working just fine for you."

"Most visual artists actually don't need an A-Corp. However, you might want some of the benefits. At a minimum, it creates a legal separation between you and the business, which means if someone decides to sue, they'd go after the company, not your personal assets. If you're making any kind of public art, you'd want this protection. You can get this from a regular LLC, too, but the A-Corp formation is easier because it allows you to fill out a legally binding form that creat"

An Artist Corporation, or A-Corp, is a business structure proposed in Colorado legislation for artists. Artists typically operate as sole proprietors, filing taxes using a Social Security number. Other business types like corporations, nonprofits, and LLCs require more paperwork and often lawyers to form. The A-Corp is intended to solve that administrative burden by allowing artists to create a business designed for creative work by filling out a form. The main reason to consider it is legal separation between the artist and the business, so lawsuits would target the company rather than personal assets. Public art work may particularly benefit from this protection, though an LLC can also provide it.

Read at Hyperallergic