chapter  5
10 Pages

Business models

For-profit, nonprofit, government-supported, and others
WithJeffrey Taylor

In the United States, the business structure for most for-profit art enterprises is the Limited Liability Company (LLC), and most commercial galleries will be the sole-proprietorship variant. Galleries with a profile in selling ownership of artworks are most likely to be for-profit galleries, and the income from these sales will be the primary source of revenue that sustains these entities. Galleries with a nonprofit business structure can be frequently found operating under the umbrella of a larger nonprofit community arts center. Government-supported galleries are more likely to be found in European countries, and only relatively rarely in the United States. University galleries tend not to be their own incorporated entity, but rather have a legal status by way of their governing institution. In addition to these legally incorporated models, many gallery configurations exist that avoid formal legal status.