Business License Question....
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Registered Users Posts: 107 Major grins
I had put in a request to bid for a job as photographer for our local youth sports program. Today, I got a letter from the city saying that their records show I've done a few jobs in the city along with submitting bids for future work and a 2006 & 2007 business license was not purchased, taxes weren't filed, they're going to follow up on my company...... I don't live in the city limits. I don't have a 'business' in the city limits. True, a good bit of the pictures that I take are within city limits, but since when does someone need a license to take pictures? I'm not being paid to be there to take pictures. I make money from selling pictures online. If that's the case, any football game, beach trip, etc. am I going to have to get a business license from that city in case I ever decide to sell a picture that I've taken there? I could understand if I was being paid to shoot these events, or if I lived in the city (therefore uploading pictures from a computer in the city). I am bidding on a 2008 job, so I'm not sure why they're attacking me all the way back to 2006. BTW, I am registered with my state to pay sales/use tax.
The letter stated that "ordinance xxxx-xxxx requires that any person, firm, partnership, corporation, organization, association, membership cooperative, agency or other group engaging in business of any nature in the city of x pay to the city of x a license fee annually."
Does anyone have any suggestions/comments/advice? I'm not really sure where I stand on this. It also says threatens that any jobs done this year before I get my city license will have a penalty added or possible a citation will be given!!! Well, I've already shot an event last weekend! Any replies are appreciated.
The letter stated that "ordinance xxxx-xxxx requires that any person, firm, partnership, corporation, organization, association, membership cooperative, agency or other group engaging in business of any nature in the city of x pay to the city of x a license fee annually."
Does anyone have any suggestions/comments/advice? I'm not really sure where I stand on this. It also says threatens that any jobs done this year before I get my city license will have a penalty added or possible a citation will be given!!! Well, I've already shot an event last weekend! Any replies are appreciated.
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www.michellesphotographyonline.com
Michelle Martin
Control your destiny, or someone else will.
www.michellesphotographyonline.com
Michelle Martin
Control your destiny, or someone else will.
0
Comments
Sometimes they even do something for the money, not often mind you, but to be fair on rare occasion they do.
Now that said, getting to the practical side: If you have compromising photos of the mayor, or own a small army, you don't have to pay no stinking business license fees.
For the rest of us it's much easier to just pay them. It's not normally a very large amount.
Sam
As for taxes, I found the following document useful in understanding (vaguely) what services are taxable and which are not. Although it is written specifically about tax laws in California (where I don't live) this document still provides a useful overview of typical government "think" as it applies to photography. After reading it I was forced to research what some of the equivalent rules were here in Texas:
Tax Tips for Photographers, Photo Finishers, and Film Processing Labs
http://www.boe.ca.gov/pdf/pub68.pdf
Olympus E510 and Gigapan mount
www.michellesphotographyonline.com
Michelle Martin
Control your destiny, or someone else will.
This is the right approach. Seriously, if we need to have a license, or pay a tax, we need to do it, but as you stated only when you need to. Do you research, and beware of the drones. Do let us know what the outcome is.
Sam
I swear they do not understand the word tact. Every letter seems to have a "lawer" behind it.
I thought that if I wasn't getting paid for an event (back to sports), then I'm just like any other mom there taking pictures. ????? Who knows....
www.michellesphotographyonline.com
Michelle Martin
Control your destiny, or someone else will.
The link above from ArchiTexas applies to Sales Tax and Photographers. It's very complex here in California. They do get us coming and going! But that is a different kind of tax than a City Business License - which is a permit to work in a city and you are taxed to do that. Sometimes it's a flat amount, sometimes it's a percentage of gross receipts (all money you take in - before expenses even!)
In the City of Los Angeles - and most local cities/municipalities in California, you are required to have a business license to work there. That includes taking photos. If you have a contract to shoot with the local school board or sports team, you would need a business license.
If I work in Los Angeles and my business is based in Thousand Oaks, technically, I need to pay city tax and have a City of Los Angeles Business License. By the same token, I could reduce my fees to the City of Thousand Oaks. They have regulations like that with reciprocity.
In California they match your tax returns to the City records for having a business license. And sometimes they match the businesses in the city to see if you did work within the city. Everyone wants their fair share of tax and not one is happy to pay it!
Sometimes there is a reduced rate if your business makes less than X dollars, but you won't know that until you find out what the local rules are. Your accountant is the best source for that information. I wear that hat around here (If I am not shooting!) so I can answer that question.
Flash Frozen Photography, Inc.
http://flashfrozenphotography.com