If you were starting a digital arts type of business and wanted to follow the business' name with "studios" ...is it appropriate to call it "studios" or just "studio."

That is, should is be called "Acme Studios" or just "Acme Studio"

I like "Studio"

Do you have more than one studio...?

haha I knew this would come up...

No, just starting out. In the future, who knows...

If you will always be just a 1 man show - I'd stick with Studio.  If you have, or plan to have, more than 1 working designer you might consider Studios.  In my opinion, the plural in this case does not necessarily define the number of physical locations, but rather the capability of the company to produce more than just one project by one person.  

Theoretically, each designer and his workstation would be considered a studio. Thus the question on your current and future plans for staffing.

Just my .02  

Cool, then call it what you like.  

I'm a one-man show in one location with no real plans on expanding to employ other designers, thus I'm a "studio".