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SmugMug Pro: What am I getting myself into?
Packhorse-4
Registered Users Posts: 65 Big grins
I have been thinking about different ways to earn a little money to support my photography hobby, but I not ready to take the leap into starting a business. I’m really just looking for a way to make some extra cash and earn some money to go into my “Next Lens” piggy-bank.
I often take pictures of my kids during their after school activities: Soccer, Swimming, Gymnastics, Choir, School Plays, etc. In addition to my kids, I also take several pictures of the other players on the field. Throughout the last year I have been taking, printing and sharing these photos with other kids on the team. By the end of the season I try to make sure everyone on the team has a couple of action shots from the various games.
A few of the parents have asked how much I was charging for the photos, but I always gave them away for free. I use a Canon Selphy and it will print great quality 4x6 prints for about 29 cents each. However, the more I give away, the more the costs add up. The more pictures I gave away, the more people would ask me to take extra shots of their kids. Having a few parents say things like, "How much?" and "Take more of #7" gave me the impression that I might be able to sell the prints for a nominal fee.
Now that I have been introduced to the greatness of SmugMug, I am learning how others are selling similar pictures through SmugMug Professional level accounts. While I think this is a great idea, I really don’t know what I would be getting myself into.
1.Can I simply sign up for a professional level account and start charging for the photos? Can it really be that easy?
2.If I actually make some money, are there Income Tax implications? Is this like a virtual garage sale or e-bay where I can sell a few of my possessions for a couple hundred bucks and not really have to worry about reporting the sales? I’m sure SmugMug reports all of the checks it sends to users to the IRS, I think it would have to.
3.If there are Income Tax implications, can I write off the cost of the pro level account? Can I write off the cost of new camera equipment?
4.Will I need insurance?
5.Am I completely over thinking this entire process and spinning myself hopelessly out of control over nothing?
I often take pictures of my kids during their after school activities: Soccer, Swimming, Gymnastics, Choir, School Plays, etc. In addition to my kids, I also take several pictures of the other players on the field. Throughout the last year I have been taking, printing and sharing these photos with other kids on the team. By the end of the season I try to make sure everyone on the team has a couple of action shots from the various games.
A few of the parents have asked how much I was charging for the photos, but I always gave them away for free. I use a Canon Selphy and it will print great quality 4x6 prints for about 29 cents each. However, the more I give away, the more the costs add up. The more pictures I gave away, the more people would ask me to take extra shots of their kids. Having a few parents say things like, "How much?" and "Take more of #7" gave me the impression that I might be able to sell the prints for a nominal fee.
Now that I have been introduced to the greatness of SmugMug, I am learning how others are selling similar pictures through SmugMug Professional level accounts. While I think this is a great idea, I really don’t know what I would be getting myself into.
1.Can I simply sign up for a professional level account and start charging for the photos? Can it really be that easy?
2.If I actually make some money, are there Income Tax implications? Is this like a virtual garage sale or e-bay where I can sell a few of my possessions for a couple hundred bucks and not really have to worry about reporting the sales? I’m sure SmugMug reports all of the checks it sends to users to the IRS, I think it would have to.
3.If there are Income Tax implications, can I write off the cost of the pro level account? Can I write off the cost of new camera equipment?
4.Will I need insurance?
5.Am I completely over thinking this entire process and spinning myself hopelessly out of control over nothing?
-- John
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http://www.smugmug.com/help/pro-start.mg
We report 1099 income on over $600. Here are all the details: http://www.smugmug.com/help/reporting We at SmugMug don't give tax advice - you'll want to hear from other pros, or speak with an accountant.. A good idea.
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It's kind of funny, I filed my taxes today using TurboTax and the program asked me if I had a 1099 from freelance work. In years past I would have passed it over without a second thought, but it struck me as funny because I had asked about it earlier today. It also mentioned, as you did, that it was a required form if I had income over $600.
I’ll skip the tax write off questions for now.
As for the insurance, I guess this topic opens a whole new can of worms. If anyone wants to chime in on this, I would be interested to know what others are doing.
-- John
It's all about how much you think you'll make. If you're going to make only enough to pay for your smugmug account and maybe a bit extra, I wouldn't worry about insurance or the tax implications.
If you think you'll be making $600 plus - you can start writing off mileage and home office stuff. If you want to do this "for real" - you'll have to go get a certificate of assumed name from your county's registrar of deeds. Then you can open a business checking account (to keep expenses and income seperate)....personally, I don't think you should need to do any of that for the amount of volume you'll likely be dealing with.
Just my $.02
-- John