Modern Artist Handbook Vol II -- The Hard Stuff by Gail Daley Fine Art

Vol 2

The Hard Stuff

An Introduction to Contracts, Taxes & Licenses, Insurance and Legal Representation

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 requirements or questions. ÂŠ 2011 by Gail Daley Fine Art

INSIDE THE HARD STUFF Introduction to Taxes & Licensing

Do I need Insurance?

Do I need a Lawyer?

Tracking Expenses

Sample Mileage Sheet

Sample Art Information Sheet

Sample Art Tracking Report

Sample Agreement for Art Commission

Sample Art Sale Agreement (not commissioned)

Sample Art Sale With Payments

Bonus Section: Preparing for A Booth Event

INTRODUCTION TO TAXES & LICENSES

Information for this section was taken from the following web sites: California State Board of Equalization (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 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. 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, partnerships, 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. Examples of tangible personal property include such items as furniture, giftware, toys, antiques, 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 creating 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 customer provided the materials for making the ring. However, labor costs for making repairs (resetting a diamond, for example) are not taxable 4

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 Information 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 downloaded 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 original 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 protect 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 liability 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 public 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 underreporting and outstanding liabilities, may be shared with the other government agencies.

S ALES T AX WHAT IS TAXABLE? Retail sales of tangible personal property in California are generally subject to sales tax. Examples 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?) 5

In some instances, retailers must pay use tax, rather than sales tax, to the BOE. The most common example of a purchase subject to the use tax is a purchase of an item for use in California 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 include, 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 applicable 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 closes 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 following 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 requirement to file.

B USINESS L I CENS ES 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 6

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.

F EDERAL & S TATE T AXES 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 similar 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 taxes 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 income, 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 Business (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 return 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 materials 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

TORNEY TO DISCUSS YOUR SPECIFIC REQUIREMENTS OR QUESTIONS.

CPA OR

AT-

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 contacts 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 possessions? What protection do I need if someone is hurt within my stall? What protection does the venue 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 personal 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 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? 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 organization, 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 councils, 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 contracts, 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 below: 

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 Francisco, CA 94123 (415) 775-7200



California Lawyers for the Arts (Santa Monica) 1641 18th St. Santa Monica, CA 90404 (310) 9985590



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. 9

TRACKING EXPENSES 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. Income

envelopes

Art Sales

shipping fees

commissioned work

banking fees

Show Awards

postage Promotional items

Internet Sales Reimbursements

Booth display fees

Print Sales

booth hardware

Expenses

display stands

Petty cash for events

Show entry fees

Advertising

Misc. Supplies

Web page charges

Subscriptions

Pay Pal or credit card fees

Education Seminar/workshop fees

Business Cards Representative fees

Professional Association Dues

Brochures

Vehicle Expense

Printing Costs

Mileage

Newspaper/radio ads

Fuel Repairs

Art Supplies Canvas

Maintenance

Paint

parking/toll fees

Brushes

insurance Out of Town Expenses

Frames

Meals

Misc. Supplies

Hotel/motel expenses

Office Supplies

Insurance

Paper ink

booth/event insurance

toner

Homeowner/gallery insurance

pens

Liability insurance Taxes & Licensing

telephone computer hardware

Sales Tax

computer software

State BOE of Equalization

digital video/camera hardware

City Licensing fees

pencils

Tax Preparation

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 programs 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 consuming. 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 income 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 Elements. 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.

D EDUCTING B USINESS M ILEA GE 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 businessrelated 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 11

MILEAGE LOG SAMPLE Ford 2009 mileage

Destination

DATE

Year starting mileage

START

END

TOTAL

78122.

Year Ending Mileage

91201.

Reason for Travel

12/7

Krazans

78122.0

78134. 0

12.0

ACA Meeting

12/8

Office Max

78167

78193

26.0

Pick up signs

Kingsburg

77954

12/2

For art show 77979

25.0

Enter art in Show

Art Center

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 current 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 supporting 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 employee in Engle v. Commissioner. The taxpayer admitted that their reported mileage amounts were estimates. In a summary opinion they held that due to lack of substantiation the taxpayers were not entitled 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 MODERN ARTIST HANDBOOKS. UNFORTUNATELY, I DO HAVE TO CHARGE FOR IT TO RECOVER THE COST OF MAKING IT.

ART INFORMATION SHEET 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 donâ&#x20AC;&#x2122;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. Record

128

Painting Title

Serene River

Size

36 x 40

Media

Acrylic

Shows/Exhibits Date

Shows

3/208

Reedley Opera House

Description Mendota Slew bridge

crossing over river Landscape Frame Description

9/20/2008 CAG fall symphony show

Frame Cost

Awards

Exhibits

Date

Sunnyside Lib

5/1/08

Lemoore City Hall

1/1/09

Sunnyside Lib

5/4/11

Finish Date 4/1/2008 Copywrite date

LIMITED EDITIONS

Copywrite fee

Size

Primary Color

blue

Secondary Color

green

No Made

Style/Genre representational Wholesale price

$225.00

Retail Price $325.00 Date Sold Buyer Address 13

Cost to Make

Selling No Price Sold

Gross Profit

Net Profit

ART LOCATION REPORT

Date Pick up Date of Current Location Rec Date Show

Location

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 Monterey, 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.

Rec #

Title

Media

Web frame Subject Price ?

This is an excel report can be a little cumbersome to use because 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 wonâ&#x20AC;&#x2122;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 entering the same piece year after year.)

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 received 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. Delivery to be made to the following address

________________________________________,___ zip _________________ _____________________________ The Artist

Date _______________

_____________________________ Buyer

Date _______________

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 16

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.

Shipping handling fees will be charged if the Buyer lives outside the ________________area. Otherwise, the Artist will deliver the painting to the buyer at a mutually agreed upon time and place.

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 divided 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.

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.

NON-DESTRUCTION: The Purchaser will not permit any intentional destruction, damage or modification of the Painting.

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

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.

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

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

BONUS SECTION: PREPARING FOR A BOOTH EVENT 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 either 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:

O UTDOOR E VENT 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 because 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; however 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 18

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 sandbags 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 waterproof 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 customers who buy large ticket items are going to want a receipt.

I NDOOR OR T ABLETOP E VENT 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. 19

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