Who do I talk to...lawyer, accountant, etc. about a new biz?

~Jan~

I mentioned in another thread that I'm struggling w/ whether or not to create a "real" business, legally speaking. I really have no idea how much this would cost me yearly and if it would be worth it. Who do I talk to? A lawyer? An accountant? The county clerk? :scratch

aktse

You talk to an accountant about tax issues (income tax, write-offs, etc) and a lawyer about rights management and/or legal shooting issues (location, etc).

In general, you talk to them when you run into an issue, or hopefully, before you run into those issues.

As for when.... it depends on the amount of money you think you can make. Unless you're doing this as a full time profession, many people just file a schedule C.

HarlanBear

I would suggest talking to an accountant to help set up your own accounting system for income, expenses, what you can write off, etc. They get back with them at year-end to make sure taxes are reported correctly.

Check with the county clerk to see if you need a business license for this type of business in your county / state; doubtful, but you should check. They, or a bank, can tell you how to register your "business name" officially and get a business bank account to keep income / expenses of the business separate from personal. You should also register your "business name" with the state and your logo, or whatever, as a "service mark". This is different from a trademark or copyright, at least here in California. Again, state or county officials can help.

If you have a contract, it's a good idea to run it by an attorney who knows your type of business / service. You may be able to find boilerplate contracts at an office supply store or a photo store, or even on-line.

Having started a couple of small media companies, I can tell you that most of the accounting, etc., is commonsense, but getting orgainzed right at the start really helps. As for whether it's worth it or not, all up to you. The good thing with this kind of business is it's pretty low overhead - don't need a storefront or employees, at least to start, and you can rent lights, studio space, etc. as needed. Now marketing, that's a whole other subject.

My thoughts, and good luck with the biz, Jan.

S. Horton

If you are generating income from photography and you travel for shooting, and you've been reporting income to the IRS, then it makes sense to see an accountant as your next step.

Otherwise, a good place to start might be a local pro photographer who is operating a business. Take her/him to a nice lunch, ask your questions, you'll learn a great deal. For example, who do they use for accounting and (a) what does the accountant need from them plus (b) when did they start paying an accountant to help and why?

jdryan3

~Jan~
I see you are in Illinois. I strongly suggest to talk to a lawyer about the creation of a legal business entity. In some states, like Ohio, accountants are not permitted to do that - it is considered the practice of law without a license. Accounting, Taxes, yes; incorporation, no.

I know Illinois has a strong state bar, and would not be surprised it is the same. But ask a lawyer. Or a CPA who would know better.

divamum

Sorry to bump this older thread, but I'd love some more input.

I'm at the point where, to do the shooting I want to do, I need to market it a bit and start formalizing the business aspect. To date, most of my shoots have been unpaid (or nominally paid in the form of thank you gift certs, small profit - ie pennies - on prints etc etc). However, I've acquired one semi-regular small gig, and there's definitely interest in my headshots and portraits - while I don't see this becoming a full-time career (nor do I want it to, at least not for about 15 years or so!!), I can see it moving towards more paying shoots. Given the interest, I'd like to start promoting services a little more actively in the new year too, so I guess it's time to get some business ducks in a row.

The bulk of my shooting is likely to be performances (where it'll be on somebody else's property, so presumably not as big a business deal and more of a "for hire" arrangement), theatrical headshots and kid/family headshots. While the portraits may be on location, they could also potentially wind up in my home if weather/style dictated, so I figure I should be appropriately knowledgeable about how to protect clients and myself legally and financially.

- I DO know that I need to register for sales tax in my state. I have not yet done so (no need), but once I do, I gather I have to file quarterly regardless of whether any income is generated (meh).

- at what point does one need to go LLC? While I anticipate 75% of the shooting I do to be outside my home, I suspect I will also be using my living room as a studio for certain types of portraits. What do I need to do to protect myself and my property properly?

- which leads to liability insurance: how much, and when does it become necessary and no longer covered by homeowners?

- I already file as a "sole proprieter" as a singer, using my name, so I'm familiar with 1099's and the "hobby income" rule. As a photographer, would it be a similar process? And can I use my same name, or does that create a bookkeeping conflict?

- contract points to consider, particularly regarding liability in my home?

I have an accountant who can of course answer many questions, but I'd love to hear from photographers so I have a better idea of WHAT the questions actually are so I can actually ask him the right things about how to proceed - at the moment, I'm guessing!!

Thanks in advance for any further input (or places to read up on this - I'm sure there's info out there, but I'm not quite sure what I'm searching for..... )

takeflightphoto

Get John Harrington's book, Best Business Practices for Photographers.
ISBN 1-4354-5429-4
$23.00 on Amazon.com.
Read it. Study it. Follow it.

BradfordBenn

divamum wrote:

- I already file as a "sole proprieter" as a singer, using my name, so I'm familiar with 1099's and the "hobby income" rule. As a photographer, would it be a similar process? And can I use my same name, or does that create a bookkeeping conflict?

I am by no means an expert on this stuff, but something that I did way back when was a sole proprietorship that was fairly open ended on purpose. The reason was so that it would cover lots of things. I think it was titled audio and technology consultant. This way I could use the same accounting for doing work where I was doing recording, another project where I was terminating cables, and another where I was doing desktop publishing, all under the same "umbrella". I also had an umbrella policy for apartment insurance, car insurance and all the liability stuff. However this was advised/guided by relatives that were lawyers so it might vary by state and laws in the past 20 years. Man where did the time go.

divamum

Thanks for the book recco! Sounds like just what I need.

As for "open-ended title" I'm not sure how I can get the "opera singer/musician" my name has represented to the IRS for the last 11 years to cover "photographer" (kidding aside, it can cover both performance, teaching and any other musical activities, but I think it won't quite stretch to an entirely different medium )

Thanks to both of you for your comments - keep 'em coming, folks!!

takeflightphoto

Just start calling yourself a "multi-media artist/" That should cover it all.

divamum wrote:

Thanks for the book recco! Sounds like just what I need.

As for "open-ended title" I'm not sure how I can get the "opera singer/musician" my name has represented to the IRS for the last 11 years to cover "photographer" (kidding aside, it can cover both performance, teaching and any other musical activities, but I think it won't quite stretch to an entirely different medium )

Thanks to both of you for your comments - keep 'em coming, folks!!

aaronbrown

divamum wrote:

Thanks for the book recco! Sounds like just what I need.

That book is GOLD.