The Hard Stuff

An Introduction to Contracts,

Taxes & Licenses, Insurance

and Legal Representation

Vol

2

2

© 2011 by Gail Daley Fine Art

Disclaimer: The information in this booklet is for general infor-

mation purposes only; it is not intended to be tax or legal advice.

Each situation is specific; consult your CPA or attorney to discuss

your specific requirements or questions.

3

INSIDE THE HARD STUFF

Introduction to Taxes & Licensing 3

Do I need Insurance? 8

Do I need a Lawyer? 9

Tracking Expenses 10

Sample Mileage Sheet 12

Sample Art Information Sheet 13

Sample Art Tracking Report 14

Sample Agreement for Art Commission 15

Sample Art Sale Agreement (not commissioned) 16

Sample Art Sale With Payments 17

Bonus Section: Preparing for A Booth

Event 18

Disclaimer: The information in this booklet is for general in-

formation purposes only; it is not intended to be tax or legal

advice. Each situation is specific; consult your CPA or attor-

ney to discuss your specific requirements or questions.

4

Information for this section was taken from the following web sites: California State Board of Equal-

ization (BOE) and IRS.gov. For more information or answers to specific questions please go to

those web sites. Disclaimer: The information in this booklet is for general information pur-

poses only; it is not intended to be tax or legal advice. Each situation is specific; consult

your CPA or attorney to discuss your specific requirements or questions.

RE-SALE NUMBERS: WHO NEEDS ONE?

You must obtain a seller's permit (re-sale number) if you:

Are engaged in business in California and Intend to sell or lease tangible personal property

that would ordinarily be subject to sales tax if sold at retail.

The requirement to obtain a seller's permit applies to individuals as well as corporations, part-

nerships, and limited liability companies. Both wholesalers and retailers must apply for a

permit.

If you do not hold a seller's permit and will make sales during temporary periods, such as

Christmas tree sales and rummage sales, you must apply for a temporary seller's permit.

Such permits are normally issued to selling operations lasting no longer than 30 days at

one location.

WHAT DOES ENGAGED IN BUSINESS MEAN?

You are engaged in business in California if you:

Have an office, sales room, warehouse, or other place of business in this state (even if the

location is only temporary).

Have a sales representative, agent, or canvasser operating in this state.

Receive rental payments from the lease of tangible personal property in this state.

There are other activities that may qualify a selling operation as being engaged in business in

California. Due to the various rules that apply, you should contact the BOE's Information

Center 800-400-7115 or contact your nearest BOE office to determine if you must obtain a

permit.

WHAT IS MEANT BY ORDINARILY SUBJECT TO SALES TAX?

In general, retail sales of tangible personal property in California are subject to sales tax. Ex-

amples of tangible personal property include such items as furniture, giftware, toys, an-

tiques, clothing, and so forth.

In addition, some service and labor costs are taxable if they result in the creation of tangible

personal property. For example, if you make a ring for a specific customer, you are creat-

ing tangible personal property. Therefore, the total amount you charge for the ring

(including the charge for labor) would be taxable. This would also be the case if the cus-

tomer provided the materials for making the ring.

However, labor costs for making repairs (resetting a diamond, for example) are not taxable

INTRODUCTION TO TAXES & LICENSES

5

since they do not result in the creation of tangible personal property. You are only repairing or

reconditioning existing property.

Likewise, a labor charge to install or apply property which has been sold is not ordinarily subject

to sales tax (note: the labor charge should be stated separately on the bill).

There are many rules governing what is taxable. You are encouraged to call the BOE's Infor-

mation Center 800-400-7115 or contact your nearest BOE office for information on what is

taxable for your business.

HOW DO I APPLY FOR A SELLERS PERMIT?

You can visit or call a nearby BOE office to obtain an application. Or, you can arrange to have an

application mailed or faxed to you by calling 800-400-7115. Applications can also be down-

loaded from our Forms and Publications Section of our website.

(Note: You will need to mail or bring in the completed application since we must have your origi-

nal signature. You should make a copy for your records.)

IF I APPLY FOR A PERMIT, WHAT INFORMATION IS NEEDED TO COMPLETE AN APPLICATION?

You will be asked to furnish:

Your social security number (corporate officers excluded).

A photocopy of your driver license to ensure the accuracy of the information provided and to pro-

tect against fraudulent use of your identification numbers.

The name and location of a bank where you have an account.

Names of suppliers.

Name of person maintaining your account.

Names and address of a personal reference.

Anticipated average monthly sales and the amount of those sales which are not taxable.

Additional information may be required.

If you have a business partner, or if the business is managed by corporate officers or limited lia-

bility company managers, members or officers, those persons will also be asked to furnish

some of the information listed above.

IS INFORMATION REGARDING MY ACCOUNT SUBJECT TO DISCLOSURE?

Yes. While most of the information you provide to the BOE is confidential, some is subject to pub-

lic disclosure, such as the information on your seller's permit and the closeout date of your

business, if applicable. Under certain conditions, your account information, including underre-

porting and outstanding liabilities, may be shared with the other government agencies.

SALES TAX

WHAT IS TAXABLE?

Retail sales of tangible personal property in California are generally subject to sales tax. Exam-

ples of tangible personal property include such items as art, furniture, giftware, toys, antiques,

clothing, and so forth. In addition, some service and labor costs are subject to sales tax if

they result in the creation of tangible personal property. (Art commission?)

6

In some instances, retailers must pay use tax, rather than sales tax, to the BOE. The most com-

mon example of a purchase subject to the use tax is a purchase of an item for use in Califor-

nia from an out-of-state retailer. Out-of-state retailers who are engaged in business in this

state are required to collect the use tax, whenever applicable, from the consumer at the time

of making the sale.

The tax rate for sales and use taxes is the same.

Some sales and purchases are exempt from sales and use tax. Examples of exempt sales in-

clude, but not limited to, sales of certain food products for human consumption, sales to the

U.S. Government, and sales of prescription medicine. For more information on exempt

sales, please refer to publication 61, Sales and Use Taxes: Exemptions and Exclusions.

WHO IS RESPONSIBLE FOR PAYING SALES TAX TO THE BOE OF EQUALIZATION?

As a seller, you owe the sales tax and are responsible for paying the correct amount to the BOE.

If you do not pay the correct amount, you are subject to additional tax charges plus applica-

ble penalties and interest charges.

FILING REQUIREMENTS

What is a sales and use tax return?

A sales and use tax return is used by seller’s permit holders to report the payment of sales and

use taxes to the BOE. Permit holders are required to file a tax return. Electronic Filing

(efiling) is the BOE’s prescribed method for filing sales and use tax returns.

WHEN DO I FILE THE TAX RETURN?

When you obtain your seller’s permit, you will be instructed to file your tax return on a monthly,

quarterly, or annual reporting basis.

Your tax return is due after the close of each reporting period. In other words, if your period clos-

es on June 30, your tax return and payment is due on July 31, the last day of the following

month. If the due date falls on a Saturday, Sunday or legal holiday, returns are due the fol-

lowing business day. Check the Calendar of Due Dates for your filing basis.

You must file your tax return and pay by the tax due date whether you efile, mail, or hand-deliver

the return. Failure to receive a return or reminder from us does not excuse you from the re-

quirement to file.

BUSINESS L ICENSES

IS MY SELLER'S PERMIT THE SAME AS A BUSINESS LICENSE? No. You should contact your city and/or

county business license department to obtain a separate business license. To locate the department,

check the government pages of your telephone directory (for example, look for the terms license or

business license under City Government Offices and County Government Offices).

EIN NUMBERS

An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and

is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN

7

in various ways, and now you may apply online. This is a free service offered by the Internal Revenue

Service.

Do you need an EIN? The IRS has a list of questions at the following link http://www.irs.gov/

businesses/small/article/0,,id=97872,00.html answering yes to one of them will automatically send

you to the on-line application processes.

FEDERAL & STATE TAXES

As an artist you probably fall under the designation of “self-employed” for Federal and State tax filing

purposes. This means you will probably need a Schedule C and form SE added to your tax return. As

a self-employed individual, generally you are required to file an annual return and pay estimated tax

quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE

tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is simi-

lar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general,

anytime the wording "self-employment tax" is used it only refers to Social Security and Medicare tax-

es and not any other tax (like income tax).

Before you can determine if you are subject to self-employment tax and income tax, you must figure

your net profit or net loss from your business. You do this by subtracting your business expenses

from your business income. If your expenses are less than your income, the difference is net profit

and becomes part of your income on page 1 of Form 1040. If your expenses are more than your in-

come, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of

Form 1040. But in some situations your loss is limited. See Pub. 334, Tax Guide for Small Busi-

ness (For Individuals Who Use Schedule C or C-EZ) for more information.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If

your net earnings from self-employment were less than $400, you still have to file an income tax re-

turn if you meet any other filing requirement listed in the Form 1040 instructions.

DEDUCTING ART DONATIONS

As an artist, I often get hit up to donate art to charities. There is nothing wrong with this and it can get

you some publicity within your community. A word of warning about deducting art on your tax return:

the IRS usually won’t allow you to deduct the selling price of the donated art, only the cost of materi-

als and labor. Sorry, but that is the way it reads.

DISCLAIMER: THE INFORMATION IN THIS BOOKLET IS FOR GENERAL INFORMATION PURPOSES ONLY; IT IS

NOT INTENDED TO BE TAX OR LEGAL ADVICE. EACH SITUATION IS SPECIFIC; CONSULT YOUR CPA OR AT-

TORNEY TO DISCUSS YOUR SPECIFIC REQUIREMENTS OR QUESTIONS.

8

DO I NEED INSURANCE?

INSURANCE REQUIREMENTS FOR BOOTH EVENTS: insurance questions cannot be answered by anyone

other than your insurance carrier. At a minimum you probably want some sort of theft and personal

liability coverage but I don’t have any knowledge of what California requires or recommends. The

venue may have requirements for coverage also; they may want a rider from your company naming

them as an additional insured for the day of the event. Whatever their requirements are—get it in

writing!

HOW DO YOU FIND AFFORDABLE ART INSURANCE COVERAGE? Your regular carrier might not have con-

tacts in this area, However, Local art groups have to carry event insurance for their art shows. Get

in touch with them and ask for a referral to their insurance carrier. The carrier they are using may

be a lot less expensive than someone unfamiliar with this type of coverage.

QUESTIONS TO ASK THE CARRIER: what protection do I as a vendor need for my art and my posses-

sions? What protection do I need if someone is hurt within my stall? What protection does the ven-

ue carry for fire, theft, personal liability? What about fire or other damage caused by an accident in

another person's booth that then adversely affects mine? Ask all the "what if" questions you can

think of and then make your own determination about participating. Also, check into whether there

is an insurance contract and what the terms of the contract may be before signing and have your

insurance agent look it over first as well as an attorney if there are things you don't understand.

Never assume, always ask for clarifications and get them in writing.

If you are displaying your art someplace like a restaurant, other space or gallery, most likely you will

need to make arrangements with the owner regarding theft or damage to your art. My carrier won’t

cover my art outside my home unless I want to pay big bucks which I can’t afford. A lot of art shows

carry riders to this effect also.

DO I NEED ADDITIONAL COVERAGE IF I AM WORKING OUT OF MY HOME? The answer to that is again,

maybe. Unless your homeowners insurance has an exclusion forbidding you to work out of your

home, you probably are covered for fire and theft since the art you create can be considered per-

sonal property. If you need to make a claim, the carrier will require documentation. That is why it is

important to keep good records of what you painted. You should consult your insurance carrier as

to how much they will cover for each art piece. Don’t make assumptions and get stuff in writing!

DISCLAIMER: THE INFORMATION IN THIS BOOKLET IS FOR GENERAL INFORMATION PURPOS-

ES ONLY; IT IS NOT INTENDED TO BE TAX OR LEGAL ADVICE. EACH SITUATION IS SPECIFIC;

CONSULT YOUR CPA OR ATTORNEY TO DISCUSS YOUR SPECIFIC BUSINESS QUESTIONS.

9

If you ever find yourself in need of representation, you can try Lawyers for the Arts. Most states have

either a volunteer lawyers for the arts, or reg. lawyers for the arts who will often give you a bro bono

consultation to see want you need.

VOLUNTEER LAWYERS FOR THE ARTS (VLA) is both a generic term for legal service organizations located

throughout the country and it is also the proper name of the organization in New York City. Founded in

1969, that organization is the oldest VLA in the United States. In California, Bay Area Lawyers for the

Arts (BALA) was founded two years later. When BALA expanded to Southern California, joining with

Volunteer Lawyers for the Arts-Los Angeles, the organization was renamed California Lawyers for the

Arts. There are more than 30 VLA programs throughout the United States. They are not a single organi-

zation, but rather a network unified by similar missions, they provide a broad range of free and low-cost

legal services and educational programs speaking to the needs of artists and arts associations for all

types of arts and artists

Each organization is independently operated. Most are nonprofits while others are held with arts coun-

cils, arts services organizations, bar associations or business for the arts programs.

Some of the programs provided include: Legal services through referrals and, in some cases, on-site

consultations; legal clinics; alternative dispute resolution services, including mediation and arbitration;

accounting services; law student internships; advocacy; educational programs on such topics as con-

tracts, copyright, estate planning, taxes and nonprofit incorporation; and publications on a broad range

of topics.

In CALIFORNIA you can also go to: www.CaliforniaAttorneyReferral.com or you can try the list be-

low:

Beverly Hills Bar Association Barristers Committee for the Arts 300 S. Beverly Dr., Ste. 201 Beverly

Hills, CA 90212 (310) 601-2422

California Lawyers for the Arts (Sacramento) 1127 Eleventh St. #214 Sacramento, CA 95814 (916)

442-6210

California Lawyers for the Arts (San Francisco) Fort Mason Center, Building C, Rm 255 San Fran-

cisco, CA 94123 (415) 775-7200

California Lawyers for the Arts (Santa Monica) 1641 18th St. Santa Monica, CA 90404 (310) 998-

5590

San Diego Performing Arts League 110 West C St. #1414 San Diego, CA 92101 (619) 238-0700 x.

16

I have never used any of these firms so I have no idea of their quality, fees or abilities. DISCLAIMER: THE

INFORMATION IN THIS BOOKLET IS FOR GENERAL INFORMATION PURPOSES ONLY; IT IS NOT INTENDED TO BE

TAX OR LEGAL ADVICE. EACH SITUATION IS SPECIFIC; CONSULT YOUR CPA OR ATTORNEY TO DISCUSS YOUR

SPECIFIC BUSINESS QUESTIONS.

DO I NEED A LAWYER?

10

Art is a business, and like any business it is needful to keep track of expenses as well as income.

Below is a suggested list of income and expenses. This is only a suggested list. You may find that

you need different or more or less items to track, depending on the kind of art you do.

TRACKING EXPENSES

Income

Art Sales

commissioned work

Show Awards

Internet Sales

Reimbursements

Print Sales

Expenses

Petty cash for events

Advertising

Web page charges

Pay Pal or credit card fees

Business Cards

Representative fees

Brochures

Printing Costs

Newspaper/radio ads

Art Supplies

Canvas

Paint

Brushes

Frames

Misc. Supplies

Office Supplies

Paper

ink

toner

pens

telephone

computer hardware

computer software

digital video/camera hardware

pencils

envelopes

shipping fees

banking fees

postage

Promotional items

Booth display fees

booth hardware

display stands

Show entry fees

Misc. Supplies

Subscriptions

Education

Seminar/workshop fees

Professional Association Dues

Vehicle Expense

Mileage

Fuel

Repairs

Maintenance

parking/toll fees

insurance

Out of Town Expenses

Meals

Hotel/motel expenses

Insurance

booth/event insurance

Homeowner/gallery insurance

Liability insurance

Taxes & Licensing

Sales Tax

State BOE of Equalization

City Licensing fees

Tax Preparation

11

I have been searching for a comprehensive program for my art business for years. Currently I would

recommend QuickBooks to track your expenses and income. While there are some all-inclusive pro-

grams beginning to be developed, I have usually found some flaw in the program; either they were

hard to use, or had an incompatible photo program for thumbnails of my art, etc. There are a couple

of new companies with programs designed for artists out on the internet. I haven’t used them myself

so I don’t know how easy they are to work with: G*YST and ArtistWorks by Wise Software.

You can simply use an excel spreadsheet to track income and expenses but it is very time consum-

ing. QuickBooks, while a little on the expensive side is pretty user friendly and easily transitions into

tax software programs such as Turbo Tax when it comes time to file your income tax.

Yes, Virginia, at the moment I am actually using three programs to track my art: QuickBooks for in-

come and expenses, two excel spreadsheets to tell me where my art is at any given time (Current

Location Report) (Painting Information Sheets) to track awards, income from each painting or prints

made from it, and a photo file with different sized images of my art for various uses (webpage, large

-sized prints, and specific sizes for on-line show entries). For Photo Editing I use Photoshop Ele-

ments. It is less pricey than the full Adobe editing program and as a painter, I really don’t need the

maximum amount of bells and whistles you get with the full Adobe Suite.

I can’t say this often enough; back up your data!

You should keep three types of records:

A photo log with both high- and low- resolution photos of your work, kept separately from your

desktop computer. A working copy can be kept on the desktop, but be sure and back up your

files each month onto a separate disc or jump drive.

A program that tracks income and expenses.

A record of each piece of art created and its disposition or current location.

Keep back-up copies of these items in a separate place. And up-date your back-ups monthly. Once

your records are lost due to computer crashes, natural disaster or any other reason they are gone.

DEDUCTING BUSINESS M ILEAGE

THE IRS DEFINES BUSINESS MILES as distances traveled using your vehicle while working on behalf of

your employer or miles driven between jobs. For example, if your employer required you to drive from

your office to visit clients using your car, that mileage would be deductible. The IRS does not allow

you to claim a deduction for miles that you drive from your home to your job. This is considered

“Commuting” by the IRS and is not deductible. For example, traveling to a client’s home or business

to paint or draw them probably would be considered Commuting.

QUESTION: If I work out of my home as an independent contractor, can I claim mileage to work sites

and back home? Can I deduct trips made to the bank and post office? What if I make business-

related trips from my home office and also stop to do personal errands? How do I figure the mileage?

ANSWER: Yes, your mileage to work sites and back are business miles that must be supported by

12

Ford

2009

mile-

age

Destina-

tion

Year

starting

mileage

78122.

Year

Ending

Mileage

91201. Reason

for Travel

DATE START END TOTAL

12/7 Krazans 78122.0 78134.

0 12.0 ACA Meeting

12/8 Office

Max 78167 78193 26.0 Pick up signs

For art show

12/2 Kingsburg

Art Center

77954 77979 25.0 Enter art in

Show

0.0

written documentation of where you went and how many business miles you traveled. Trips to the

bank and post office also qualify as business mileage if documented. Trips for personal errands are

ignored. The end result of your records should be business miles for the year (with a backup written

log) and total miles driven for the year. To document your total miles driven, take your odometer

reading at the beginning and end of the year. The IRS often looks at the odometer reading on auto

repair bills to see if your total miles are reasonable. You will need to check with the IRS for their cur-

rent mileage rate.

Sample log: Most office supply stores sell mileage booklets for you to keep in your car. But you can

write the information in a simple notebook and then use this sample excel sheet on your computer.

QUESTION: I drove about 8,000 miles last year for my home business. I have some receipts, but I

didn't log all the miles. Is an estimate OK? Can I still take the deduction if I don't have all the sup-

porting information?

ANSWER: No, estimated business miles are not allowed to support your tax deduction. The tax court

disallowed the auto expenses in 2009 for the owner of a real estate brokerage firm and her employ-

ee in Engle v. Commissioner. The taxpayer admitted that their reported mileage amounts were esti-

mates. In a summary opinion they held that due to lack of substantiation the taxpayers were not en-

titled to the auto deduction. I personally know of someone who lost their house when they claimed

“estimated” mileage on their taxes! It isn’t worth it!

USABLE WORKSHEETS AND CONTRACTS ARE AVAILABLE IF YOU ORDER THE CD SUPPLEMENT TO THE MOD-

ERN ARTIST HANDBOOKS. UNFORTUNATELY, I DO HAVE TO CHARGE FOR IT TO RECOVER THE COST OF

MAKING IT.

MILEAGE LOG SAMPLE

13

Record 128

Painting

Title

Serene River

Size 36 x 40

Media Acrylic

Description Mendota Slew bridge

crossing over river

Landscape

Frame De-

scription

Frame Cost

Finish Date 4/1/2008

Copywrite

date

Copywrite

fee

Primary

Color

blue

Secondary

Color

green

Style/Genre representational

Wholesale

price

$225.00

Retail Price $325.00

Date Sold

Buyer

Address

Size No

Made

Cost

to

Make

Selling

Price

No

Sold

Gross

Profit

Net

Profit

LIMITED EDITIONS

Art is a business as well as a creative endeavor. Losing

your art can be a financial loss. So can not being aware

you are losing money because you don’t keep track of

costs. This is a sample spread sheet that you can use to

help you know where your art is at all times, what shows

and exhibits the piece was entered into, and if you are

making money on individual pieces.

Date Shows Awards Exhibits Date

3/208 Reedley

Opera

House

Sunnyside

Lib

5/1/08

9/20/2008 CAG fall

sympho-

ny show

Lemoore

City Hall

1/1/09

Sunny-

side Lib

5/4/11

Shows/Exhibits

ART INFORMATION SHEET

14

Rec

#

Title

M

edia

W

eb

?

fram

e

Subje

ct

Price

D

ate

Rec

Pic

k u

p

Date

C

urr

ent Loca

tion

D

ate

of

Show

Location

1

2

3

4

Over our lifetime as an artist, all of us will probably create

hundreds of pieces of art. When you first start out, it may

seem a waste of time to develop this kind of recordkeeping,

but when you are trying to remember which landscape of Mon-

terey, which of 30 red abstracts or which painting of magnolias

out of the 15 you painted in the past 20 years that you entered

into a show, you will come to see the value of good records.

If you keep this record and the Art information sheet updated

you will always have a documentation of your work and where

it has been.

This is an excel report can be a little cumbersome to use be-

cause it is necessary to manually move the current location to

the next column each time you enter it into a different show or

bring home it from the current one. However, if you keep it

updated, you probably won’t lose track of your art and try and

re-enter art into a show you have already exhibited in. (This

can be very embarrassing when the show director calls you to

pick up your artwork and then complains that you keep enter-

ing the same piece year after year.)

ART LOCATION REPORT

15

SAMPLE AGREEMENT FOR ART COMMISSION

Agreement for Commission of Artwork

The Artist _________________________________________agrees to paint

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

For _____________________________ as agreed below, for the sum of

$________. A non-refundable deposit of 25% of the painting price is due upon

The Artist beginning the painting. The remainder of $__________ is due upon

delivery of the painting to _____________________________.

_____________________________, who agrees to take Delivery of the painting

within 30 days of completion of the painting.

Framing will be done by _____________________________ at her/his expense.

Painting size: ______________________________

Media: __________________________________

The Painting will be completed by: _______________, _____

If the finished artwork is not acceptable to the buyer, or final payment is not re-

ceived within 15 days of delivery, the artwork will be returned to The Artist. The

Artist may then sell or otherwise dispose of it as the artist sees fit. There is a

$______________ delivery fee for shipping.

________________________________________,___ zip _________________

_____________________________ The Artist Date _______________

_____________________________ Buyer Date _______________

Delivery to be made to the following address

16

SAMPLE AGREEMENT FOR SALE OF ART (NOT COMMISSIONED)

SALE OF ORIGINAL ART

Artist ______________________

_______________________________, __ ZIP ________________

Purchaser ______________________________

Address __________________________________________________________

City: ________________________State ___ Zip ______________

Title ___________________________________

Size ___________________________________

Media: _________________________________

Year created ___________________________________

The parties of this sale mutually agree as follows:

1. SALE: The Artist hereby sells the Painting to the Purchaser at the agreed value of

$______________.

2. REPRODUCTION: The Artist reserves the right to reproduce the work in any form.

3. The Artist retains all copyright privileges. No prints of any kind may be made of this artwork

without the express written permission of The Artist.

4. NON-DESTRUCTION: The Purchaser will not permit any intentional destruction, damage or

modification of the Painting.

5. NOTICE: A notice must be permanently affixed to the Painting, warning that copyright, ownership,

etc., are subject to this contract.

6. TRANSFEREES BOUND: If the art is sold, the new owner of the Painting shall be bound to all

the terms of this sale as if he had signed a sales agreement when he acquired the Painting.

7. EXPIRATION: This contract binds the parties, their heirs, and all their successors in interest, and

all the Purchaser’s obligations are attached to the Painting and go with ownership of the

painting, all for the life of The Artist and The Artist ’s surviving spouse and heirs plus 21

years

8. ATTORNEY’S FEES: In any proceeding to enforce any part of this contract, the aggrieved party

shall be entitled to reasonable attorney’s fees in addition to any available remedy.

DATE: _____________________________ ___________________________________

The Artist

DATE: _____________________________ ___________________________________

PURCHASER

17

SAMPLE ART SALE INSTALLMENT AGREEMENT

ART SALE INSTALLMENT AGREEMENT

Title ___________________________________

Size ___________________________________

Media: ___________________________________

Year created ___________________________________

Artist ______________________________

Address _____________________________________________________

Purchaser ______________________________

Address __________________________________

__________________________________

Artist and Buyer mutually agree as follows:

1. SALE: The Artist hereby sells the Painting to the Purchaser at the agreed value of

$______________. %40 percent of the agreed on price is non-refundable.

2. Shipping handling fees will be charged if the Buyer lives outside the ________________area. Other-

wise, the Artist will deliver the painting to the buyer at a mutually agreed upon time and place.

3. The Artist agrees to accept three installments as payment. The first payment of (40% of the sale

price) $________ will be made on the day of the sale. The next two (2) payments (equally divid-

ed between the remainder of the sale) will be, due on the ______ of the Month, beginning

_______, and ending on _________. No money will be refunded by the Artist if the Purchaser

defaults on the payment.

4. TRANSFER OF ART: Transfer of the art will take place once the final payment has been received.

Any shipping/handling fees will be mutually agreed upon at the time of sale.

5. NON-DESTRUCTION: The Purchaser will not permit any intentional destruction, damage or modifi-

cation of the Painting.

6. REPRODUCTION: The Artist reserves the right to reproduce the work in any form.

7. NOTICE: A notice must be permanently affixed to the Painting, warning that copyright, ownership,

etc., are subject to this contract. TRANSFEREES BOUND: If anyone becomes the owner of the

Painting with notice of this contract, that person shall be bound to all its terms as if he had signed

a SALE AGREEMENT when he acquired the Painting.

8. EXPIRATION: This contract binds the parties, their heirs, and all their successors in interest, and all

the Purchaser’s obligations are attached to the Painting and go with ownership of the painting, all

for the life of the Artist and the Artist’s surviving spouse plus 21 years

9. ATTORNEY’S FEES: In any proceeding to enforce any part of this contract, the aggrieved party shall

be entitled to reasonable attorney’s fees in addition to any available remedy.

DATE: _____________________________ ___________________________________

ARTIST

DATE: _____________________________ ___________________________________

PURCHASER

18

A booth event is a sale with multiple vendors. The event may be geared to sell only art or it may allow

different types of vendors. Basically there are three types: Outdoor, Indoor and tabletop. Outdoor

events are usually larger than the Indoor ones and will attract a larger crowd. A tabletop may be ei-

ther indoors or outdoor; the main difference between a tabletop and the others is the space size.

Most booth events allow you a 10’ x 10’ space. Usually with a tabletop you only have a space about

the length and width of a table (usually 8’ long by 3’ wide) to display your art.

Your booth set up should be light and portable, easy for one person to set up in about 20 minutes,

and fit into your vehicle along with your art. To take part in an outdoor booth event you should have

the following:

OUTDOOR EVENT

Pop-Up booth: Pop-Ups come in several price ranges and styles. Ideally you will have help setting it

up, but I would recommend the E-Z Up brand because it can be set up by one person. (I’ve done

it many times). I would also recommend a couple of practice trials in your yard before you go out

to the event if you have never set up a booth. The best Pop-Ups for displaying art have a white

top and straight sides. The white top provides more light to see the art and the straight sides give

you something to fasten display racks to. You can also purchase sidewalls to hang from the

sides of the booth. This is a must if you are taking part in an event that lasts several days be-

cause you can use the sidewalls to enclose the booth when you go home for the night. Unless

the event has very good security, I wouldn’t recommend leaving out your art, but you can leave

your display stands set up inside overnight.

Display stands or racks: You can certainly buy display set-ups from the art supply catalogs; howev-

er if they are more expensive than you can afford, You can also make your own. I bought 8’ wire

closet shelving from the local hardware store. Turned on end, they can be fastened together with

plastic tie straps, and the wire bars then make nice spaces to hang different sizes of art. They

can also be made into stand-alone shapes (boxes, triangles and rectangles) for indoor events

where you can’t take the Pop-Up. As additional security for stand-alone shapes, I would suggest

that sandbags or weighted milk cartons be fastened inside the shape to prevent tipping.

Portable easels can also be used. The art supply catalogs have some excellent display easels that

hold multiple pieces of art. If your easels aren’t set up to display more than one piece of art, you

can simply lean a painting against the legs. You can make these yourself also out of copper or

PVC pipe or wood.

Small, fold up tables with a nice tablecloth: This will hold your cash box and give you something

write on when making out receipts. They can also be used to display very small or 3-deminsional

art, cards, etc.

Sandbags or weights to hold down the booth in case of high winds: Most booth events are on

BONUS SECTION: PREPARING FOR A BOOTH EVENT

19

blacktop so you can’t use the handy stakes that come with the Pop-Ups. Weights of some kind

are a must. A Pop-Up booth makes a really big kite when the wind blows and it doesn’t have to

be hurricane strength either. Nice clean sand can be bought from the hardware store and sand-

bags from the Art Supply warehouse where you got your Pop-Up. You can also fill empty gallon

milk cartons and use the handle to fasten to the legs of the booth. You need about 15 to 20 lbs.

on each corner.

Cash box: a locking cash box to keep change for cash sales and checks can be bought at the local

office supply store.

Chair to sit in; while you will be spending a lot of time on your feet, it’s nice to have a place to sit

down and relax so potential buyers don’t think you are just waiting to pounce.

Your art: Plastic boxes with good, snap lock lids work really well to transport your art. They are wa-

terproof and usually hold up much better than cardboard if you are doing a lot of events. If you

are going to be carrying your art in a pickup bed, make sure the lids of the boxes are fastened

down and won’t blow open. You will also need either bubble wrap or cardboard to wrap the art

in. For larger pieces of art, I recommend that you either carry them inside your vehicle (in which

case they can be separated by large pieces of cardboard to prevent scratching the frames), or

completely wrap them in bubble wrap.

A hand truck: You may have park some distance from your booth set up. While most places allow

you to drive into the booth area to set up your display it might not be feasible for you to do so. A

hand truck or dolly will enable you to haul your art, display stands and Pop-Up into the area

without having to transport everything one at a time. This is a big plus because you may have a

limited time in which to set up your booth.

Sales Receipts, a calculator and bags: Hopefully you will be making sales, so the receipt book is

a handy way for you to keep track of sales. Don’t spend a lot on the bags; you can get small

paper bags and larger plastic ones with handles at the local Dollar Store.

A way to take debit or credit cards: If you want to make sales over $20 you need this. A lot of the

cell phone companies now have this feature that can be added to a cell phone. Alternatively, if

the event is Wi-Fi enabled, you can bring your laptop and key directly into your web site. Make

sure you have access to electricity if you are going to go this route because chances are your

laptop battery won’t last all day. You will also need a small printing calculator because custom-

ers who buy large t icket i tems are going to want a receip t .

INDOOR OR TABLETOP EVENT

You are probably going to need everything mentioned above but the Pop-Up .

When I go to an event, especially an Indoor one, I always ask for access to electricity; I seldom take

a lot of really large pieces of art anymore. Instead, I take a plug-in digital picture loaded with

photos of my art and my laptop in case someone wants to buy a piece of art that isn’t with me.

The moving slide show and music attract a lot of attention and I can display more art.

20

Art-Tique

5688 E Sussex Way

Fresno, CA 93727

Phone:559-960-2428

e-mail: art-tique@gaildaleyfineart.com

www.gaildaleyfineart.com go to Art-Tique

$10

All three volumes of The Modern Artist Handbook are available on the

website for $10 each

A CD with samples of contracts, sample forms, etc. can be obtained for

an additional $5.00 charge.