How to Become a Legal Business

As an artist, it’s easy to wonder: Do I need to register as a business, or can I just keep doing my thing? That’s something I’ve been exploring in my Web Business Creation class. Here’s what I’ve learned so far.


Choosing a Legal Structure
First off, you'll want to decide on a legal structure. Are you planning to be a sole proprietor or form an LLC? And what do those even mean?

If you live in Idaho (like I do), you can visit this website to learn about different legal structures:
business.idaho.gov/legal-structure


I found out that sole proprietors in Idaho only need to register their business name if it’s different from their legal first and last name. Since I use the name Ceramisaurus Pottery and not my own name, I had to file an Assumed Business Name with the Idaho Secretary of State.
What Happens After That?Once your business name is registered, you might wonder, What’s next?
That’s where the Idaho Business Wizard comes in:
business.idaho.gov


This tool helps you figure out your next steps based on your business type and location. It compiles a list of licenses and registrations you might need.
If it gets confusing or if the form won’t let you continue (like it did for me!), don’t worry! I used AI to help me understand what I needed to do next.


How to Use AI for Business HelpWhen asking AI for help, make sure to include details like:

• What your business is
• What product or service you offer
• Whether you make the product yourself
• Where your business is located
• ​Who your customers will be (just your state, U.S., or worldwide)

Here’s an example prompt I used:
“I want to start an online ceramic business. I will make all the products myself. My business is located in the state of Idaho, and I will be selling to customers throughout the U.S. What legal things do I need to worry about?”
When you include your state, AI can often provide links to government pages specific to your location.


A Quick Word About Taxes
Now, let’s talk about the thing nobody wants to deal with: taxes.
If you're selling online, how do you know when you need to collect sales tax?
Most states require you to collect sales tax only if you have nexus—which means a significant presence in that state. That could be because:

• You live or operate in the state, or
• ​You reach a certain threshold, such as $100,000+ in sales or 200+ transactions per year in that state

​
Tracking sales in each state might sound overwhelming, but there are tools to help with that. Here are a few AI recommended services:

• TaxJar
• Avalara
• Shopify Tax
• Stripe Tax

These services can help automate the process and keep you compliant.


I hope this info helps more than it overwhelms you! If you're like me, it can feel like a lot. But learning this stuff step by step makes it manageable.
Good luck getting started with your business—and keep creating!