# Alien artist ??



## shipwright (Sep 27, 2010)

Is there anyone here who knows the legalities of a Canadian (like me) who spends substantial time in USA (like me) making and selling art objects in US galleries? Is there a minimum value that has to be exceeded in order to be a problem? Is it an absolute NO without a work visa of the like?

I have asked around and there are a couple of places that would take my work in Az but I'm not about to break any laws so it would be nice to get the facts before rather than after a problem arises. I have no problem paying taxes etc. but I'd rather pass on the whole thing than involve myself in a lot of paperwork and bureaucracy for a few hundred dollars.

Thanks for any insights or experiences you might be able to supply.


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## richgreer (Dec 25, 2009)

I'm not an expert and you should not rely on me for tax or regulatory advice. However, from my experience, the biggest concern is the desire of the states to get their sales tax revenue. That is only an issue if you are selling on a retail basis to the general public. If you are selling on a wholesale basis to a store that will be reselling to the public, you need not worry about sales taxes.

It may be possible that you want to sell on a consignment basis. In that case, the consignment shop should collect and submit all sales taxes due and you would probably be okay.


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## Charlie5791 (Feb 21, 2012)

You are not working in the US if your studio (or shop) is in Canada and that's where the pieces are created.

However, I think you should be asking this of legal council in Canada to get the straight story. I know *I'm* not a tax/customs/fee-and-license expert.

If it's only a couple hundred dollars, ship the stuff to AZ and let them worry about it. That's assuming you're selling to the place in AZ and THEY're actually retailing the items. If it's consignment, ..... not enough information and any advice offered might just as well be a guess.


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## shipwright (Sep 27, 2010)

To clarify, I have a winter home / shop in Az. It is pieces made there that I'm inquiring about. 
As far as I know, under NAFTA art is a free trade item so pieces made in Canada are not the problem.

I'm assuming that there is a tax issue an immigration issue as well ????


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## Puzzleman (May 4, 2010)

I can't talk about products from Canada coming into the US. However, I have two stores that I sell product to in Canada. The way it works for me is that my customers pay the duties and other taxes on the product coming in. Other than the shipping costs being higher, there is nothing more to it than that. I count it as sales on my US tax forms. Really no different than US customers except for the extra cost mentioned above.

You are correct in that art is free trade under NAFTA.

I think that to clarify the situation, you need to talk to an attorney. This is too technical of a question for LJ's.


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## MonteCristo (May 29, 2012)

My "gut" reaction is that it sounds a lot like you need a work permit or similar if you don't have residency in the USA.


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## BillWhite (Jul 23, 2007)

Eh? 
I'm jokin'!
Check your local codes thru your/an accountant. I can't imagine an issue unless there is one or more in Canada.
SELL AWAY!!!!!
Bill


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## sandhill (Aug 28, 2007)

Paul I have had a lot of dealing with this type of situation and my advice to you is to contact and accountant and or lawyer when you are in AZ. They will give you the best advice. I have lived in 5 states on the east coast of the U.S. and it has been my experience that IF you consign your work the consignor is accepting all responsibility to collect any taxes due in the state they sell in. However you will be responsible for income tax for the profits you make to the Federal Government. The one catch is If its a hobby you don't need to file or pay taxes. The catch in the catch is consecutive earnings that exceed $1,000 each year and increase over each year. But note that the Shop owner will report the sales on there tax return (Don't believe them if they say they don't) which could raise a flag especially if its to a non-resident in which case there are a host of issues that can arise. Also be aware that a legitimate gallery or consignment shop will probably ask for a social security number or Federal Tax I.D. number also known as an EID.


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## Gene01 (Jan 5, 2009)

Paul,
Just give the items to me.


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## phtaylor36 (Jun 13, 2011)

I agree with Gene…you can just ship them straight to me and I will take care of everything else. I'll even pay shipping


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## roman (Sep 28, 2007)

only smiles are free

art, isnt something CRA will ignore, and I doubt the IRS will either

get legal counsel, and go with your gut………if it feels like your cheating, you probably are.


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## knotheadswoodshed (Jun 14, 2012)

damn, I thought this thread was about woodworkers from Epsilon 9…..


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## rance (Sep 30, 2009)

>art is free trade under NAFTA

I even googled and couldn't understand what I read. Could someone splain this in woodworker's english please? 

Thanks.

Lucy


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## shipwright (Sep 27, 2010)

*N*orth *A*merican* F*ree *T*rade *A*greement Rance


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## TopamaxSurvivor (May 2, 2008)

I would check with the IRS to see what the minimum amount you can make before you have to pay income tax.


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## cathyb (Jul 8, 2009)

I think selling your pieces on the internet or through a local art gallery would be the best solution. As for the income, if you don't have dual citizenship your taxes would be due in Canada. Until you get your website up and running consider eBay or Etsy as a resource. I'm sure there are other websites out there that would give your work the exposure they deserve. Good luck,,,,,,,


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## Boatman53 (May 21, 2012)

Hi Paul, I just asked a gallery owner friend of mine and her advise was the same as above….. talk to your accountant. I don't think it should be too complicated. If I understand correctly you will be making the items in AZ and selling them in AZ so no importing involved. You are not taking a job away from anyone in your own shop so I don't know why you should need working papers of any kind. Just my two cents. Good luck let us know what you really find out.
Jim


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## 33706 (Mar 5, 2008)

Don't forget also, you'll probably need a sales tax ID/ resale certificate number, which many venues will insist on.


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## Boatman53 (May 21, 2012)

Why would you would need a resale certificate to sell through a gallery? They are responsible for the tax not the artist. I deal with sales tax, when a boat yard calls me in for a job I bill them for the work, no tax, it is their responsibility. When a customer calls me and I'm billing them directly I have to collect the tax. Whoever handles the final transaction is responsible for the tax.


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## 33706 (Mar 5, 2008)

*Boatman*: Some venues will not let you, as a vendor, in the door if you cannot provide your sales tax ID. Boatyards not making this requirement is noted.
*Sandhill* is correct, if somebody upstream is audited, they will be looking at you for compliance on record.


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## shipwright (Sep 27, 2010)

I think that this is far less about sales tax and far more about me as a Canadian, earning money in USA.

From independent research on the internet I've discovered that it is probably out of the question on immigration / resident / visa / income tax kinds of issues. All that has to be OK before sales tax ever becomes an issue and I don't think the time / expense to make it OK is worth the effort.

I can apparently make all the pieces I want in Az and bring them home to sell and all the pieces at home that I want and sell them in Az but I can't sell in the US anything that I made in the US.

I guess I'll just have to make lots of little orca and sailboat boxes in AZ and fill my time here in BC doing scenes of cactus and coyotes.

Ain't bureaucracy grand?


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## Roz (Jan 13, 2008)

I think all you have to do is talk with a US certified tax accountant to get the info you need to remain within the law.


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## rance (Sep 30, 2009)

Yeah, I knew what the acronym stood for. What I don't understand is how is Art affected by NAFTA. Is it free of taxes, is it double-taxed, etc?


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## shipwright (Sep 27, 2010)

I think it's free. That is to say no duty to import / export. My problem is about earning money in the USA without a visa / green card etc. I'm now pretty sure it's a non starter.


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## 33706 (Mar 5, 2008)

shipwright: your status would probably be considered 'Non-Resident Alien". This quote is from 'investopedia.com:

_*Resident aliens are taxed on all earned income as if they were U.S. citizens, but a nonresident alien is not taxed in the same way. For a nonresident alien, only income that is generated from U.S. sources, excluding certain investments such as stocks, is subject to taxation. For example, if you live in England and own a company that operates in the U.S., but you have not been to the U.S. for five years and don't have a green card (a non-resident alien), the income generated by the business will be subject to U.S. tax. Dividends are taxed at 30% for every non-resident alien, while capital gains are not subject to U.S. tax. _Read more: http://www.investopedia.com/terms/n/nonresidentalien.asp#ixzz28iUJCMv1_*_ End of quote. you can find your way, as long as you take compliance issues very seriously. I know a bit about cross-border issues, though my situation is a bit different from yours.


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## shipwright (Sep 27, 2010)

Looks like I would be a resident alien. The question is do I want to be? Perhaps that's the next thing I should explore.

Thanks for the link.


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## shipwright (Sep 27, 2010)

*Update*: I saw an immigration Lawyer today and I was right about a couple of things.
1) It's not a taxation problem.
2) It's a non-starter on immigration grounds. I don't qualify under any visa categories and no working without one.

Oh well….. there's always golf.


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