SideArts serves a range of business types. The most common include art organizations, art galleries, event promoters, private businesses, local governments, educational institutes, and museums.
What is a business?
- Prior to generating revenue, an entity is considered a hobby.
- Once an entity has generated revenue, it is considered a business.
In the USA, revenue can be described a number of ways including fees from sales, memberships, donations, gift monies, financial investments, and more.
Depending on your local government, how much revenue generated will determine when your business should be incorporated. For example: In 2015 in the city of Philadelphia, Pennsylvania, an entity must incorporate if it generates more than $600US dollars in a fiscal year.
(There are other ways of filing taxes and deductions as an individual, but we won’t get into those details here.)
Businesses may choose to file their articles of incorporation in any number of ways. This is primarily done in order to take advantage of different tax and liability laws. In the USA, popular incorporation types include S-Corps, C-Corps, B-Corps, LLCs, Sole Proprietorships, Partnerships, Limited Partnerships, and 501(c)3s. Outside the USA, there are many more types of incorporation types available.
What type of entity your business is incorporated as will determine whether it is for-profit or non-profit. An apt comparison is that a non-profit organization is to a business as a red apple is to a fruit.
Non-profit type entities were wildly popular in the USA during the 80’s and 90’s, although new formations have become discouraged by investors and philanthropists due to their high rate of unsustainability. The more popular B-Corps have taken their place in preference of the structure’s focus on triple-bottom lines.
Now you know more about corporate structures. Easy-peasy!
Learn more best practices for calls for artists at our FAQ page.