Posted: September 27, 2011
[This article relates to: legal steps to starting a graphic design business, graphic design firm, city, county taxes.]
(Note: The following is for informational purposes only and should not take the place of actual legal advice. If you are in need of legal services, please speak to a lawyer.)
Someone recently asked me: "What do I need to do (legally) in order to start my own graphic design business?" Here's a really short, quick, incomplete list of 3 things you'll need:
Apply for a business license or pay a city business tax, depending on your state. Check with the City Treasurer website in your local area.
If you are using a unique business name (that isn't your real name) you'll need to file for a fictitious business name or DBA. Again, check your area's City Treasurer site or your local chamber of commerce. (If you are using your real name as your business name, no action is needed.)
After filing for your fictitious business name and paying a small fee, you are usually required to publish an announcement in a local publication, such as a newspaper. Even the smallest newspapers will do, so shop around for the best price by visiting newspaper and publication websites in your area. Look for the business announcements section. They'll walk you through the process – it's pretty painless.
What will your legal status be? If you choose to incorporate, you will need to take further action. Otherwise, as a freelancer, you can use "sole proprietor" status and no legal status filing will be required (this is recommended). You'll have no protection of your assets as a sole proprietor, but graphic design isn't a very litigious profession by nature. : ) Look at sites such as findlaw.com for more information on business set ups.
These are just the basics, but they should get you off on the right track. Best of luck!
Questions, comments or suggestions? Email TheFGD@freelancegraphicdesigner.info.