Congratulations, you got your first book deal! Now you’re probably wondering, “What royalties will I be getting?” Well, it varies. Let’s break down some areas:
As self-employed freelancers, illustrators need to pay particularly close attention to how they manage their money. Do it correctly and you can pay your taxes easily, save for your future, and retire in style. Neglect it and your financial health may not be as rosy. These are my suggestions for managing your money:
If you’re a freelance illustrator working professionally in America, you should get an EIN#. Here’s why:
I’ve always loved this Harlan Ellison video and just stumbled across it again recently. It applies just as equally to illustrators as it does to writers.
For illustrators, taxes work a bit differently than from those working regular 9–5 jobs. You’re essentially your own small business owner and need to treat your taxes as such. Let’s take a look at some essential things illustrators should know about taxes.
Late payments are the bane of every illustrator’s existence. So what should you do if you have a delinquent client? Let’s examine the scenarios and tackle the remedies.
Should an illustrator charge for sales tax when submitting his or her invoice? Though the laws differ slightly from state to state, in most cases the general answer would be “no.”
Who doesn’t love getting paid? It allows you to do all the things you enjoy like eating, wearing clothes, and not dying in the streets. So it’s a huge bummer when your payment is slowed down because you forgot some vital information on your invoice. You can solve that by making sure to include the following information on every illustration invoice you send out: