I've got to second the motion for a business license and a state tax number, both will help to establish your serious intention of opperating a business. Plus the state tax number will allow you to buy a lot of materal at wholesale prices without paying sales tax, the tax responsibility is passed along to the distributer/retailer. The taxman will get his cut of the profits but there is no reason you shouldn't let someone else pay him whenever you can. Keeping records gets to be a real pain, you have to keep reciepts for everything going out and anything comming in, make notes on reciepts as to why you needed whatever it was. Most deductions are valid if you can show that they are "exclusively used for the purpose of conducting business." Bank account, telephone listing, insurance, internet charges, opperating expenses, power bills etc. need to ALL be listed under the business name and address. I learned this much as co-owner of a furniture refinishing business but the same principles apply to opperating a "for profit" studio or any other business.
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