Do You Dream of Your Own Interior Design Firm?
By Kathy A. Johnsonkathy.johnson@interiordesignschoolreview.com
Interior Design School Review Columnist
According to the Bureau of Labor Statistics, nearly one-third of all designers are self-employed. If you dream of opening your own interior design firm, think about what form your business will take: sole-proprietorship (individually owned), partnership, or corporation. Each type of business offers advantages and disadvantages you'll want to consider when setting out on your own.
Business Basics
A sole-proprietorship is a business owned by one person, who assumes all the expenses and liabilities of doing business. As a sole-proprietor, you will also have complete control and all the profits. The drawback is that if you're ever ill or need a vacation, there is no one to keep the work going while you are unavailable. Learn more about The Art Institute Online's Bachelor Degree program in Interior Design.
In a partnership, you share the expenses, risks, and profits. You may partner with someone who has complementary skills, making your work easier. The drawback is that partners can be held liable for the debts of the business. In addition, if you start your business with a friend, it may affect the relationship. If you choose a partnership, make sure you have an attorney prepare a partnership agreement that outlines all aspects of the business.
The people who establish a corporation share the start-up expenses and profits, just as in a partnership, but the difference is that in a corporation, the principals are not held personally responsible for corporate debts. Corporate laws can be complex, and you'll probably need a CPA to keep your books.
Before You Begin
No matter which type of interior design business you decide on, make sure you have sufficient experience in interior design to handle the work, a business plan, and about six months living expenses saved. For more information about starting a business, check with the U.S. Small Business Administration or SCORE.Sources:
How to Start a Home-Based Interior Design Business, Suzanne DeWaltBureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2004-05 Edition
U.S. Small Business Administration [www.sba.gov]
SCORE (Counselors to America's Small Business) [www.score.org]
About the Author
Kathy A. Johnson has written articles on health, fitness, and many other topics in her career as a freelance writer and editor. She lives in Florida, and is the features editor of Forum, a bimonthly publication of the national mothers group, Mothers & More.
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