How to set up a photography business and be legal to accept money

9 years 6 months ago #404836 by Stacy Merrow
I don't know if you saw my other post here.  Long story short, I was just a hobbiest photographer.  Here's what I put in my other post: "This kind of jumped on me.  I took some photos of a friends family for free last month.  She posted the photos on her Facebook page Monday and made a comment about how happy she was with the holiday photos I took of her family."

We'll this resulted in so far 2 other families who are offering to pay me to do the same.  I'm guessing, now that I'll be accepting money.  I need to become a legal to do business to stay out of trouble with Uncle Sam. 

So can I get away with just setting up a Sole Proprietorship, or do I need to do a LLC?


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9 years 6 months ago #404849 by Screamin Scott
I would think an LLC would be better, but I'm not certain. That said, don't forget to get liability insurance & remember that you will have to pay taxes (income & FICA/Medicare)...There are other things that you should do as well...

Scott Ditzel Photography

www.flickr.com/photos/screaminscott/

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9 years 6 months ago #404887 by Joves
With the LLCs' there are a couple of different flavors to choose from one is sole proprietorship. Each have their own advantages, and disadvantages. As far as doing a couple of shoots without one and getting in trouble is a different matter, you can choose to report it, or not. What you have to weigh is do you plan on going much past that. If it is the once, or twice deal then I personally would not worry about it. As said if you plan on doing it as a business then worry about it. I know some will consider that as bad advice, but hey unless it is continual, or for high dollar amounts, it usually just flies under the radar.


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9 years 6 months ago #404909 by icepics
You could look up your state's website to find out about registering a business (it might be under the secretary of state's office). In my state you have to make a certain amount per year to owe taxes so being late in the calendar year it could make a difference on if anything would be owed or need to be filed where I live. There's also a government site for small businesses but I can't offhand remember the exact name of it.

Once you're handling other people's money I think it's necessary to think about what their expectations may be and how you'll handle it if they aren't happy with the pictures or don't want to pay what you ask etc. That's why photographers draw up contracts so everyone's clear on what they'll get for the amount they pay etc.

Try http://asmp.org or look up PPA for resources for photographers on contracts, releases, etc. I think with not just the internet but social media it's necessary to think about how your photos might end up being used and getting things in writing because once you give your photos to someone if there isn't a contract I think that takes it out of your control where your photos might go.

Sharon
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9 years 6 months ago #404977 by Finn
Go for LLC, but check with your lawyer first.  They are going to know your situation best. 


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9 years 6 months ago - 9 years 6 months ago #404999 by garyrhook
There are pros and cons for both. An LLC will not necessarily fully shield you from any liability. But that's a question for a lawyer.

Taxes are a piece of cake for an SP. Schedule C and it folds into your regular income. Also makes section 179 expenses easy to manage (writing off a purchase all at one time, versus amortizing it). I think an LLC may have to have its own tax return.

You really want to start with an accountant experienced with setting up a business. Cheaper. Save the lawyer for contracts and other documents, as well as specific legal issues like liability.


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9 years 6 months ago #405107 by Stacy Merrow
So helpful and such appreciated.  I value what you all have shared and think I'm going to follow through with your suggestions and speak with my accountant first, then lawyer.  My accountant is a distant friend of the family, so I'm sure this will be a more cost effective first step than speaking to our lawyer.  


Are there any other business startup tips you can suggest?   


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9 years 6 months ago #405108 by Screamin Scott
If you don't already have some, get some business cards made up to give out on shoots. Many a fledgling photographer fails due to improper marketing.... Learn to "sell" yourself... Get a portfolio together and not just an online site...

Scott Ditzel Photography

www.flickr.com/photos/screaminscott/

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9 years 6 months ago #405113 by Stacy Merrow
My husband was telling me the same yesterday ;)   "you better get some business cards made up".  So I did some Google searches on business card companies and the one that keeps coming up is Vista Print.  Have you heard of this company?  


My husband was saying that I should also get a website put together and make sure I can do things on the fly in the field.  I guess I'm not surprised with that as everything is going mobile these days.   


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9 years 6 months ago #405116 by Screamin Scott
Yeah, I got some from them years ago.... They will bombard you with email ads if you do buy from them though. To the point I considered it spam.... I don't have a website (I do have a portfolio though, guess I am too old school). That said, I do have a Flickr account & that serves me if someone wants to see examples of my general shooting interests...Being retired, I try & keep expenses to a minimum.... I used to shoot a lot more, but only do an occasional shoot nowadays... Now I shoot to please myself (mainly macro)

Scott Ditzel Photography

www.flickr.com/photos/screaminscott/

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9 years 6 months ago #405121 by Stacy Merrow
LOL, great.  I signed up on their website.  :silly:   I would love to keep cost down.  My husband is a web marketing guy.  So he get's worked up about this stuff easy.  "Get a website and make sure you have system in place that allows you to access what you need in the field".  He makes some good points, but when your just starting out, his enthusiasm is over kill.  :rofl:


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9 years 6 months ago #405122 by Screamin Scott
As the old saying goes " it takes money to make money".... This is true no matter what the field... Gear, website acquisition,  insurance, lawyers, etc.... It takes money & business acumen as well as photographic skills to make it in a crowded field such as this

Scott Ditzel Photography

www.flickr.com/photos/screaminscott/

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9 years 6 months ago #405229 by Foggy

Screamin Scott wrote: As the old saying goes " it takes money to make money".... This is true no matter what the field... Gear, website acquisition,  insurance, lawyers, etc.... It takes money & business acumen as well as photographic skills to make it in a crowded field such as this


:agree: isn't this the truth!


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9 years 6 months ago #405331 by Don Fischer
I'm gonna disagree with the though of getting a lawyer, get a CPA and let him send you to a lawyer. Most CPA's have lawyer's they work with. The lawyer may know the legal loophole's of a LLC but a CPA understands them better sand will send you to a lawyer that works with him. I have a brother that is a CPA, been one all his life and very successful. One of the things he does is set up corporations. The lawyer he works with he's been working with for years, they are very close and you would not want to take them on both at the same time. If you charge money, to do it legally probably require's nothing more than a business license. Between that and an LLC is a lot of territory! Get a good CPA.


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9 years 6 months ago #406467 by garyrhook

Stacy Merrow wrote: My husband was telling me the same yesterday ;)   "you better get some business cards made up".  So I did some Google searches on business card companies and the one that keeps coming up is Vista Print.  Have you heard of this company?  


Um, yes, everyone has heard of Vista Print. They are fine, but you'll want to upgrade the paper, finish and image. They won't be any more or less expensive than anyone else at that point.  So shop local printers to compare.

After you get going, consider Moo and their ability to put up to 50 different images onto a set of business cards.

Find a local meet-up and try to find another pro that has been through this. Make friends and get their advice and guidance.


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