Do tattoo studio artists work as booth renters or employees, and why does it matter?

Start by asking for every artist’s agreement and a simple list showing who rents, who is paid by the studio, and who has a mix of both. Compare that list with what the books show. Rent coming in tells a very different story from wages going out, and your accountant can explain how each should appear in the financial statements.

Then ask who owns the books of regular clients. In a rental model, artists often carry their own following and may take it with them. In an employee model, the studio may hold the bookings, the deposits and the aftercare contact details. Ask how deposits are handled and who answers for a dispute over a piece.

Finally, speak with the artists, with the seller’s permission, before you commit. Ask whether they would stay under new ownership and on what terms. A studio whose best artists are free to leave on short notice is a weaker base than one where their arrangements transfer cleanly. Your lawyer can tell you whether the arrangements are set up correctly. Keep notes on what each artist says, and compare their answers with the paperwork. Differences between the two are exactly what you are looking for, and they are easier to resolve before closing than after.

Key takeaways

• Get every artist’s written agreement and a clear list of who rents and who is employed.
• Ask who owns the client relationships, bookings and deposits.
• Talk to the key artists about staying before you rely on the studio’s income.