Bids

The bid is an offer to perform a contract for work, labor, or materials at a specific price. It should include detailed plans for the project, the estimated time and cost, and be written to differentiate the bid from the competition. 

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RFQ - Request for Qualification:

A request for qualifications (RFQ) is a step sometimes used in the formal process of buying art or hiring an artist, for example by a government agency. It is typically used as a screening step to establish a pool of artists that are then qualified, and thus eligible to submit responses to a request for proposals (RFP).[1][2] In this two-step process, the response to the RFQ will describe the company or individual's general qualifications but generally will not include specific details or price proposals.

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RFP - Request for Proposal:

A Request for Proposal (RFP) is a formal business document that describes a project and asks qualified artists to submit bids to complete it. RFPs are often used in competitive bidding processes to help organizations choose a vendor or service provider.

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Residency

An artist residency is a structured program that allows an artist to work in a new environment for a set period of time to develop their work and explore new ideas. Residencies can last from a few days to months and can take place in a variety of locations, from urban centers to remote landscapes.

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1099

Form 1099 is used to report non-employment income to the IRS, such as pay you received as an independent contractor. Businesses must issue 1099s to any artist/contractor who receives at least $600 in non-employment income during the year.

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Schedule C

Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. If you are a professional artist and made sales you would use a schedule C form to record that on your taxes. Don't skip this, because not only can the person who commissioned you report this to the IRS, but 3rd party payment apps and credit card companies also do. If you do not file your taxes you can be subject to fines and in the most extreme cases jail time. An activity qualifies as a business if: Your primary purpose for engaging in the activity is for income or profit. You are involved in the activity with continuity and regularity.

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EIN

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 do not need an EIN to be a professional artist. You can use your SSN as a sole proprietor for taxes and W9's if you prefer. You may apply for an EIN in various ways, and now you may apply online. This is a FREE service offered by the Internal Revenue Service and you can get your EIN immediately. 

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LLC

A Limited Liability Company (LLC) is a business structure that offers limited liability protection and pass-through taxation. LLCs are created by state statute and can combine the benefits of both corporations and partnerships:

• Limited liability

  LLCs legally exist as separate entities from their owners, so owners are usually not personally responsible for the LLC's debts and liabilities. This means that personal assets, like a house, vehicle, or savings accounts, are not at risk.

• Pass-through taxation

  LLCs are taxed on a pass-through basis, which means that all profits and losses are filed through the member's personal tax return. 

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