The activity of the production of art can be considered a "business" if the "activity is carried on in order to make a livelihood, in good faith." A new business certificate (form X-201 for sole proprietors only) is an official document that states you are conducting "business" or in other words, freelance work, as an individual under "said" name registered at the county clerk's office. An example of a business name could be Jane Doe Design. You may not only use your first and last name as the name of your business or include a word that denotes more than one person, ie. associates.
The form can be downloaded from
Blumberg Legal for a small fee of $10. The form must be notarized and taken to your local county clerk with proof of address.
Establishing a sole proprietorship is the simplest type of business structure that can be formed and does not incorporate a business. However, there are important points that you should understand before filing for a new business certificate:
- You are the only employee
- You must report profit or losses on your personal income tax returns
- There is no separation between your assets and your "business"
- You are personally liable for any debts your "business" incurs
You may call your local county clerk with any filing questions. Please visit
NYCgov for contact information.
An EIN is a nine digit federal tax identification number that is assigned to various business entities. You can obtain an EIN immediately over the phone with the IRS at 1-800-829-4933 Monday thru Friday 7:00 am - 10:00 pm EST or online at
IRS.
Please note that a letter from a CPA (certified public accountant)(on letterhead) is also needed stating all of the following: name, EIN, the date the business was effective, when and what type of income tax forms are expected to be filed in the next year if you wish to be eligible to apply to any HIP plan by submitting a new business certificate.
Obtaining this documentation sounds alot more difficult than it actually is. Also, filing for a new business certificate in no way limits you from engaging in part/full time work.
