How to Start a Graphic Design Business

Well, although the title of this post sounds like I know all the answers, I don't. But I know what worked for me, and it was not difficult.

This post assumes you have clients and a computer and some graphic design skills. Oh, and that you are not starting a graphic design business in College Station, Texas (where I live). If so, there are already quite a few graphic designers in town, so you are free to give it a shot, but there's quite a bit of competition.

First thing you'll need to do is pick a business name and go to your local courthouse and register your "Assumed Name" or DBA (Doing Business As). Your DBA makes it so that you can legally do business under a "fictitious" name (other than your own name) and receive payments and represent yourself using this name.

This will cost somewhere around $10.00 to $50.00 depending on your state and county. Some states require that you publish your DBA in the local newspaper.

You'll need this to open a business bank account at your bank. You'll want a business bank account so you can receive payments from company checks made out to you business name.

Once you've done this, you'll need to go to your local State Comptroller and register with them. Tax requirements vary from state to state. Some states do not require payment of sales tax on "services" or "consulting" but require it on "products". Texas for example requires I pay sales tax on %100 of services done for print, and only %80 of services rendered for Web (classified under "Data Processing Services"). And I only charge sales tax on Texas residents. Also, I don't charge Non-Profits and when I'm being hired on by another agency as contract (they pay the sales tax).

You can set up with the Comptroller when you will pay your sales tax; monthly, quarterly, etc.

That's about it.

Hope this helps

Jorge