Starting A Cartoon Service

As the proprietor of a cartoon business, you may channel your skill for drawing and even writing cartoons in a variety of ways. You might make art for greeting cards, books and magazines, internet clients, animation studios, advertisements, comic books, products, cartoon syndicates, and an almost infinite number of additional online and offline sales channels

Follow these ten steps to start a cartoon service:

Prepare your Cartoon Service.

Create a legal entity for your cartoon service.

Register your Cartoon Service with the IRS.

Create a Business Bank Account and a Credit Card

Create an accounting system for your cartoon service.

Obtain the Required Permits and Licenses for Your Cartoon Service

Purchase Cartoon Service Insurance

Create a brand for your cartoon service.

Make a website for your Cartoon Service.

Configure your Business Phone System

Starting a company entails more than just registering it with the state. We’ve put up this short guide to getting started with your cartoon service. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.

STEP 1: Make a business plan.

A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:

What are the initial and continuing expenses?

Who is your intended audience?

How much money may you charge your customers?

Fortunately, we have done a lot of the legwork for you.

What are the expenses of starting a cartoon service?

The greatest part about this company is that the initial investment is generally pretty little. While a beautiful studio is ideal, you may begin by working from a spare bedroom or even your kitchen table. Here’s an example of what you may invest up front.

Digital Hardware and software — From $0 to $1,500 or more. You may already have all of the necessary digital equipment. The majority of cartoonists utilise Mac computers and a software bundle that includes Adobe Photoshop and Adobe Illustrator. Animators utilise applications such as Director Suite and StoryboardPro. This cartoonist has a blog article on his digital equipment that is worth reading.

Non-digital tools cost at least $250. Vellum paper, pens, markers, erasers, a table, and enough lighting are all required.

Professional services cost at least $500. Learn all you can about intellectual property and licencing rules, but be prepared to employ an attorney to evaluate contracts or address legal problems when they arise. An accountant or tax preparer may assist you in meeting your tax responsibilities.

What are the recurring costs of providing a cartoon service?

Art materials will be your most expensive continuing expense. You’ll go through them at a pace based by your level of activity.

Who is the intended audience?

The only way to define your customer is that it includes anybody or any corporation that is interested in your work. Publishers, newspaper syndicates, non-profit or political groups, website owners, bloggers, merchandisers, Hollywood studios, and consumers might all be included.

How can a cartoon service generate revenue?

You will charge a price for your services. Cartoonists who sell online may produce artwork to animate blogs, newsletters, or webpages. You may charge a per-cartoon fee, a monthly or yearly fee, or even a large quantity discount for your items. Here’s an example of a pricing list supplied by a subscription-based cartoon service.

How much money may you charge your customers?

This may vary widely depending on the customers you attract. For example, syndicated cartoonists who work for newspapers and websites may earn $5 to $50 or more per media vehicle—but it must be divided with the syndicate, which serves as your agency. A single-panel cartoon may cost $700 or more in major periodicals like the New York Times. On the other end of the spectrum, online brokers like Fiverr are looking for cartoonists who would work for $5 each task.

Before you establish a pricing, inquire about the client’s requirements and how the work will be utilised. Then think about how long it will take you to finish the assignment and how much you want to earn each hour. In contrast, Upwork offers an online database of cartoonists with hourly fees.

Consider joining the National Cartoonists Association as well. You’ll be able to learn what others are charging for comparable services by networking with your colleagues.

What kind of profit can a cartoon service make?

There are several ways to answer that question since your company may go in apparently infinite directions. But first, let’s look at some data from other sources. A typical wage range for print cartoonists is believed to be between $30,000 and $60,000 per year. According to the website Glassdoor, the national average wage for illustrators is less than $54,000, whereas animation storyboard artists earn about $105,000. Another compensation survey website has cartoonist/animator earnings in the $50,000 range. Remember that because of the limited number of people that responded to the pay surveys, the averages may be distorted. Furthermore, there is no distinction here between workers and freelancers.

Of course, there are a few well-known cartoonists that earn millions of dollars each year.

How can you increase the profitability of your company?

Don’t be frightened to go into unknown area. As a cartoonist, there are so many various methods to offer your services that you may locate a diverse consumer base to extend your appeal and increase your earning potential.

STEP 2: Establish a legal entity

Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.

Creating a formal company organisation, such as an LLC or corporation, shields you from personal liability if your cartoon service is sued.

STEP 3: File your taxes

Before you can begin for business, you must register for a number of state and federal taxes.

To register for taxes, you will need to get an EIN. It’s really simple and completely free!

Taxes on Small Businesses

Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).

These guides will teach you more about small company taxes:

Taxes on LLCs

LLC vs. sole proprietorship

Corporation vs. LLC

S Corp vs. LLC

How to Form a S Corporation

S Corporation vs. C Corporation

There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.

STEP 4: Establish a company bank account and credit card

Personal asset protection requires the use of distinct business banking and credit accounts.

When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.

Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.

Establish a business bank account.

Opening a business bank account is not only required when asking for business financing, but it also:

Separates your personal assets from the assets of your firm, which is required for personal asset protection.

It simplifies bookkeeping and tax reporting.

Create a net 30 account.

Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.

Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.

Apply for a business credit card.

Obtaining a business credit card benefits you in the following ways:

Put all of your company’s costs in one location to separate personal and business spending.

Build your company’s credit history, which will be important for raising funds in the future.

STEP 5: Establish business accounting

Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.

STEP 6: Obtain all required permissions and licences

Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.

Requirements for State and Local Business Licensing

To run a cartoon service, certain state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.

For information on local licences and permissions, visit:

Check with the clerk’s office in your town, city, or county.

Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.

Contract for Services

Before beginning a new project, customers should be required to sign a services agreement. By defining payment terms and conditions, service level expectations, and intellectual property ownership, this agreement should clarify client expectations and reduce the likelihood of legal problems. Here’s an example of a service agreement.

Copyright & Trademark Protection

If you are creating a one-of-a-kind product, idea, brand, or design, you should safeguard your rights by registering for the necessary trademarks and copyrights.

Learn more about copyright and trademark protection.

The nature of legal requirements is always evolving, particularly in the case of copyright regulations. Here is a constantly updated website that may help you stay on top of legal obligations.

STEP 7: Obtain commercial insurance.

Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.

There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.

Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.

STEP 8: Establish your brand

Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.

How to Market and Promote a Cartoon Service

Your website serves as a showcase for your work as well as an ecommerce site where you may sell your services using PayPal or other online payment methods. Instagram, Facebook, and YouTube may all be useful platforms for promoting your artwork. Nothing better demonstrates what you can achieve for a customer than a presentation of previous work.

How to Keep Customers Returning

The quality of your work and the contentment of your consumers will help you keep your current customers and expand via recommendations.

STEP 9: Create your company’s website.

After you’ve defined your brand and designed your logo, the next step is to build a website for your company.

While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.

The following are the primary reasons why you should not put off developing your website:

Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.

Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.

STEP 10: Install your company phone system.

Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.