Lawmakers in Colorado are evaluating the possibility of establishing a new legal structure for artists to formalize their work, a proposal that could enhance intellectual property rights and provide better healthcare options for cultural workers. A bipartisan bill presented to the state’s legislature last month aims to introduce the nation’s first Artists Corporation, or A-Corp, a specialized limited liability corporation (LLC) exclusively for artists.
Given Colorado’s policy of allowing businesses nationwide to register as corporations within its borders, this legislation, if passed, could significantly affect both individual artists and collectives, even if their members are located outside the state. The initiative for a streamlined incorporation process for artists is led by Yancey Strickler, former CEO of Kickstarter, who initially floated the A-Corps concept during a TED talk last year. Attendees encouraged him to consider Colorado, recognized for its supportive arts environment, as the starting point for such corporations.
In an interview with Hyperallergic, Strickler remarked, “People have been doing their one-offs on their own things for decades. Now we’re saying: ‘Hey, there’s a benefit to systematizing it and giving everyone access to the smartest, leading-edge thinking about how to protect and value your work.’” He highlighted the financial success he personally achieved through the Dark Forest Collective, a group focused on publishing about internet culture, and noted the challenges of existing business models like C-corporations and S-corporations for artistic endeavors.
Artists currently have the option to set up custom LLCs, but Strickler pointed out that the associated costs are prohibitive. A-Corps could potentially lower these expenses, offering a more community-oriented approach to legal structuring. “We imagine creating more of a shared system that we are all a part of,” he stated, contrasting it with the current scenario where artists independently consult lawyers for custom structures.
Should the legislation pass, Strickler plans to advocate for Colorado health insurers to extend group health plans to A-Corps, which would be more economical than individual plans. The bill’s draft outlines forming A-Corps based on an artistic mission statement, diverging from traditional corporate models that prioritize shareholder interests. Although Strickler mentioned that interest in A-Corps legislation exists in at least six other states, he did not specify which ones.
