The "Art" of Choosing the Right Form of Business

Answer questions attached

 

.uil Xfinity Mobile7:32 AM7 96%a online.warner.eduMany artists and art lovers embrace the idea of the "starvingartist," such as the early career artist who hasn't yet sold muchof her art or whose art hasn't yet been "discovered," the artistwho sacrifices lifestyle, living in a cheap apartment in a poorneighborhood, scraping by with barely enough to eat, pouringevery dollar at their disposal into his art, or the artist who makesdo by working other jobs, such as a waiter or waitress, to pay therent so he can work on his art in his free time.As an artist and businessperson, however, you'd rather not be a"starving artist." Of course, it takes time to master your art,display your work, and build a following, but is it necessary ifyou're successful as an artist to also be a bad businessperson?The challenge with your art, bronze sculptures, however, is whatcomes first, the chicken or the egg, in other words, success as anartist or financial success? With the cost of materials, foundrytime to pour and shape your creations, and the help oftechnicians or specialty artists, it can cost thousands of dollars,sometimes tens of thousands, per piece. But without financialsuccess, you lack the capital needed to create your work. And,without your work to sell to art lovers, you don't have thecapital you need to create your work. Yes, indeed, chicken oregg?Since you're a better artist than businessperson, you're workingwith a lawyer and accountant who have advised you to establisha company and choose a business form that helps you succeed asan artist. They've given you some preliminary information onsole proprietorships, C corporations, S corporations,partnerships, and limited liability companies. You don't knowabout any of that, but you know that you want to shield yourselffrom lawsuits, minimize taxes, have the ability to bring ondifferent financial backers over time (in the art world, financialbackers start by backing projects and then as their confidencegrows in the artist, they eventually back the artist overall and notjust specific projects), and give yourself as much flexibility aspossible.You DecideWhat business form would shield this artist from lawsuits andminimize taxes?What business form would give the artist the greatest ability tobring on different financial backers over time?What business form would give the artist the greatest amount offlexibility over time?