SC Arts Commission, SBDC outline taxes, liability and licensing when artists form businesses

The South Carolina Arts Commission and the South Carolina Small Business Development Centers (SBDC) held a virtual workshop to walk artists through choosing a legal business structure and the practical implications for taxes, liability, licensing and growth.

The session, led by Mackenzie Drake of the South Carolina Arts Commission and SBDC consultants Cliff Emery and Jim Johnson, emphasized that the choice of structure affects personal liability, tax obligations and access to funding. “The myth is that, you know, that people who are artists don't have a business sense,” said Cliff Emery, noting that many artists already practice entrepreneurial skills in their work. Jim Johnson, a senior business consultant and food-systems specialist with the SBDC, repeatedly cautioned attendees to consult professionals: “I am not a lawyer,” he said, and added, “I am not a CPA,” to reinforce that legal and tax advisers are appropriate for final decisions.

Why it matters: business form determines who is liable if something goes wrong, how earnings are taxed and whether an artist can scale or raise capital. The presenters said sole proprietorships are the simplest option but provide no separation between personal and business assets; partnerships carry joint liability; limited…