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DPChallenge Forums >> Tips, Tricks, and Q&A >> Book Recommendations?
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 01/11/2005 08:12:27 AM · #1
OK, here's my situation. I do a lot of portrait work for friends and family (for free) especially around holidays, but year 'round really. More and more people are starting to ask if I'll photograph them (or thier kids, or family, or whatever).

I think I want to start my own business (which might be as simple as getting a DBA, I don't know), but not quit my real job. Then eventually perhaps run a small portrait studio out of my house (maybe full time years down the road).

I want a book about how to start a business. Legal forms, tax status crap, how much does the "company" have to make to be considered anything, do I have to file for taxes if I don't make a profit ... junk like that.

Does anyone know of a good book to start from? ... assume I know NOTHING, cuz it's true :)

milo
 01/11/2005 08:34:31 AM · #2
Certainly can't help you with US law! There must, though, surely be thousands of good web sites about this stuff?

E
 01/11/2005 08:36:54 AM · #3
In the UK the government itself runs a website where you can get a book on the subject sent to you for free. Well worth hunting for the US equivalent I would think.
 01/11/2005 08:42:04 AM · #4
I just went to the website for the Secretary of State of my state and there was all kinds of information for forming a business there.

If you are going to run a sole proprietorship, you can just submit an Assumed Identity form for your business name (d/b/a). Then you will just show the income/expenses on your personal taxes.

There are not a lot of forms to fill out when forming a business, unless you are incorporating. I formed an LLC and it took four forms, and that's only because I am setting up a d/b/a for my photography business to run under the LLC.

I would suggest visiting your state website and reading up on the required info for your state. I would trust that information to be a lot more accurate than any book out there.

Chances are, you only need to file an Assumed Identity form for your state, and possibly one with your County Recorder.

Just my input, after forming a couple businesses over the last year.
 01/11/2005 08:50:12 AM · #5
thank you all very much :)

i'll look into it
 01/11/2005 08:53:16 AM · #6
Originally posted by hopper:
thank you all very much :)

i'll look into it


and please, let us know what you find out :) Mavrik posted a lot of info on this a couple of months ago too.
 01/11/2005 09:35:07 AM · #7
Chris, the tip regarding my states Secretary of State was very helpful .. although most of the forms and help there is for corporations and limited liability companies. Seems the direction for me to take is what's called Sole Proprietorship. It's easiest and cheapest to start (all that's required is filling out dba "do buisness as" form and submitting it to my county clerk, my bank, and keeping one to post at my "business" - which for me would be the living room)

Taxes as a sole proprietor would be filed under my current personal taxes, but it seems I would be taxed twice for any profits i make (once as a company, and once again as personal income).

There's pitfalls to a sole proprietorship, but I'll refrain from making this post a book :)

thanks again
 01/11/2005 09:35:26 AM · #8
Look at forming an S-Corp or becoming a C-Corp. All it takes is one person tripping in your house or on your property and they can take it all. As a Corp, you, personally, are protected. By an umbrella insurance policy to be safe. A lawyer can get you set up for about $500. The taxes you pay when being self-employed are much more, so be aware of that as well and keep really good books. Make sure you track all expenses including mileage. A good accountant is a must as they will keep track of forms you have to file throughout the year. Don't mean to scare you. But I was overwhelmed when I was self-employed as a Computer Consultant.
 01/11/2005 09:36:43 AM · #9
//www.dpchallenge.com/forum.php?action=read&FORUM_THREAD_ID=148809

Message edited by author 2005-01-11 09:37:03.
 01/11/2005 09:38:52 AM · #10
what if i make no profit for a year ... will i still be taxed? what would the taxes be based on?

... see, this is why i need a book? or someone smarter than me to follow me around and answer questions :)

Originally posted by bbower1956:
Look at forming an S-Corp or becoming a C-Corp. All it takes is one person tripping in your house or on your property and they can take it all. As a Corp, you, personally, are protected. By an umbrella insurance policy to be safe. A lawyer can get you set up for about $500. The taxes you pay when being self-employed are much more, so be aware of that as well and keep really good books. Make sure you track all expenses including mileage. A good accountant is a must as they will keep track of forms you have to file throughout the year. Don't mean to scare you. But I was overwhelmed when I was self-employed as a Computer Consultant.
01/11/2005 09:44:27 AM · #11
I was at either Books a Million or Barnes and Noble and there were a couple books that said they told you all the legal and professional things you needed to start a photography business...generalized I am sure but pointing you towards the local Small Bus people, Chamber of Commerce, Accountants, etc....
If I go by there today I will read the preface in them and write down the names if they sound interesting or something you might want to check out yourself.
 01/11/2005 09:44:51 AM · #12
You probably want to take a look at //www.sba.gov/ and //www.asmp.org

In particular //www.sba.gov/starting_business/startup/guide.html

Message edited by author 2005-01-11 09:53:25.
 01/11/2005 10:28:34 AM · #13
Look at these books:
The Business Side of Creativity, Cameron S. Foote, Norton publishing
The Business of Studio Photography, Edward R. Lilley, Allworth press

And talk to an accountant. I started doing portrait work on a very small scale just before the holidays, my accountant was able to answer all my questions, and gave me lots of resources. If you establish yourself as a sole proprietor, there is good news, you can buy lots of new equipment and take it as a deduction on your personal taxes.

Off topic - The biggest hurdle was getting high quality/reliable printing. I found a local color lab that the area pros use and the problem has been solved.
01/11/2005 11:18:03 AM · #14
Find a local Accountant he can help you understand what you will need the forms and what taxes and services you will end up paying for. I would strongly recommend using a S-Corp or C-Corp you pay taxes on what income you collect. I have 2 seperate businesses both of which are S-Corp. I however have an account do all the tax work due to the fact I dont have time for that I priority is to make money for both companys not waste time doing paper work for government. "My rule". Since you would be doing photography you would be in the service industry so your goods sold is only the service however if your selling prints then you would be collecting tax on the goods sold so that when the neaty gritty starts. This all can be explained better through those that deal with taxes on a daily basis.....I would strongly recommend an Accountant. *hint* Most will do the consulting work for you for free hence there trying to earn your business so they go out of there way. *hint*. Good luck in the near future and I hope you do start a business its the way to go.
 01/11/2005 07:07:05 PM · #15
Originally posted by hopper:
OK, here's my situation. I do a lot of portrait work for friends and family (for free) especially around holidays, but year 'round really. More and more people are starting to ask if I'll photograph them (or thier kids, or family, or whatever).

I think I want to start my own business (which might be as simple as getting a DBA, I don't know), but not quit my real job. Then eventually perhaps run a small portrait studio out of my house (maybe full time years down the road).

I want a book about how to start a business. Legal forms, tax status crap, how much does the "company" have to make to be considered anything, do I have to file for taxes if I don't make a profit ... junk like that.

Does anyone know of a good book to start from? ... assume I know NOTHING, cuz it's true :)

milo


hopper....

ASMP Professional Business Practices in Photography 6th Edition ISBN: 1-58115-197-7

An accountant is very wise advice. Also a business attorney can give you insight as well, many give free legal advice for the 1st half hour. A DBA is essential (in my opinion) as it establishes "intent" should you decide to take any "business deductions". Historically the IRS looks unfavorably on photographers who take "cost of business deductions" without managing their enterprise like a business.....meaning......ADVERTISING. If you plan to deduct expenses, then plan to run your business like a business and have the necessary records to back up your business "intent".

You do not have to turn a profit, however you do need to show the intent to make a profit......meaning.....ADVERTISING.

Advertising could be business cards, flyers, mailers, coupons, any activity that evidences your intent to do business as a photographer. KEEP RECORDS. Assume you will be audited for any deduction taken and be prepared to back up how that deduction was for the business. Understand liability and the potential for lawsuits. (one reason I am now an LLC instead of a DBA). Confer with your insurance agent to verify that business clients arriving at your home are covered in case of injuries (like slip and fall). Verify that your local community does not have restrictions on running a business form one's home. Some do.

Just a few thoughts off the top of my head.

Talk to an Accountant. Decide how to set up your sales.....are you selling a service or a product. If a product, then be prepared to collect sales tax and pay sales tax for your state. Again, talk to an accountant.

Photography can be a wonderful business, as long as one treats it like a business. It can also be a great hobby, if one is not interested in the business requirements.
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