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08/29/2006 04:40:13 PM · #1 |
OK, so here's the deal. A couple in our supper club is good friends with a local lawyer. My friends mentioned to him that I was in the process of starting up a photography business and he questioned me about my interest in legal photography. Well, quite honestly I don't have much interest in doing legal photography, but it might be a good way to pay some bills. I do clinical photography for an ophthalmology clinic so it's not that big of a stretch. Obviously it's not a glamorous job and would have no artistic value whatsoever but hey... it's a foot in the door.
get to the point already Lee!!!
OK OK OK. I have managed to negotiate an exchange of services... my photography in exchange for his help in setting up an LLC. My question is how many "freebies" should I do for him to set up an LLC for me? Do any of you do legal photography? Are there any special considerations/concerns I need to be aware of or address? Obviously he's very interested because he remembers our conversation from a month ago and he tracked me down at work to offer me this opportunity.
I have set up my first client for tomorrow night. Time is essential for this particular case and he's anxious to get the shots done ASAP.
Any advice would be greatly appreciated.
Message edited by author 2006-08-29 16:41:44. |
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08/29/2006 04:50:40 PM · #2 |
legal zoom will help you set up a LLC for $130-$360 depending on your needs. How much would you normally charge for one of these shoots? I'd guess $50-100, so 4-6 shoots for LLC help?
When you talk to the lawyer to make the deal, start the negotiating at 4.
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08/29/2006 05:03:45 PM · #3 |
Our attorney setup our LLC for $450 and the CPA charged another $400 to file paperwork with the Federal, State and City governments. Hope it helps. |
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08/29/2006 05:25:01 PM · #4 |
Originally posted by mystopia: Our attorney setup our LLC for $450 and the CPA charged another $400 to file paperwork with the Federal, State and City governments. Hope it helps. |
man, why do all my friends pick on Pennsylvania? Taxylvania they call it. Not quite - they just don't know how good they go it. To go into biz as a sole proprietor - $0. Register with the state, $0. Business license, tax license, $0.
$850 saved - can buy camera stuff to start the business! |
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08/29/2006 05:32:41 PM · #5 |
Get a quote from him for the cost of his services. Give him a quote for the cost of your services. Bear in mind your services will be billed to his clients, and marked up to show a profit.
R.
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08/29/2006 05:55:24 PM · #6 |
Originally posted by Prof_Fate: Originally posted by mystopia: Our attorney setup our LLC for $450 and the CPA charged another $400 to file paperwork with the Federal, State and City governments. Hope it helps. |
man, why do all my friends pick on Pennsylvania? Taxylvania they call it. Not quite - they just don't know how good they go it. To go into biz as a sole proprietor - $0. Register with the state, $0. Business license, tax license, $0.
$850 saved - can buy camera stuff to start the business! |
Care to share more details. Especially as I am about to do so in Pennsylvania.
And for anyone who thinks PA is bad....try Connecticut or New York. (New York is really screwy. I remember having to pay for local telephone calls. Yes, if you wanted to call across the street for pizza that could be 6 cents a minute. I am truly surprised that New York City hasn't had blocks set up their own taxes. And bring municipal taxes one step closer to home.
Yes, you've paid Federal, you've paid state, you've even paid municipal...but have you paid your block tax yet?
Oh...wait, nevermind, I just realized they do. Those Italian or Chinese men dressed in nice suits come to collect it...
Message edited by author 2006-08-29 17:55:51. |
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08/29/2006 06:30:12 PM · #7 |
Originally posted by Prof_Fate: Originally posted by mystopia: Our attorney setup our LLC for $450 and the CPA charged another $400 to file paperwork with the Federal, State and City governments. Hope it helps. |
man, why do all my friends pick on Pennsylvania? Taxylvania they call it. Not quite - they just don't know how good they go it. To go into biz as a sole proprietor - $0. Register with the state, $0. Business license, tax license, $0.
$850 saved - can buy camera stuff to start the business! |
Losing your house, car and savings when your business gets sued - priceless |
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08/29/2006 06:33:42 PM · #8 |
Excuse my ignorance but what exactly does "legal photography" involve - it's not a term I've come accross before.
Maybe us folks in the southern hemisphere call it somehting else?
Message edited by author 2006-08-29 18:34:07.
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08/29/2006 06:50:56 PM · #9 |
Originally posted by dr_timbo: Excuse my ignorance but what exactly does "legal photography" involve - it's not a term I've come accross before.
Maybe us folks in the southern hemisphere call it somehting else? |
Good question. I was wondering the same thing myself... is it like shots of intersections for car accident/personal injury cases? Or product shots for product liability cases? |
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08/29/2006 06:53:52 PM · #10 |
You can set it up yourself. Go the the states Attorney General Office web site. An LLC takes nothing really for a small business like you are starting. The bigger and more complex then it gets expensive. If he'll do it then all the better. It should take him about an hour for what you are doing. I've setup several larger restaurant compnaies. I had the lawyer setup the first three, I set up the next two based on the others. The lawyer / accountant charged $700 to do it. Remember that in most states an LLC will really not protect you personally. Many think it does but that is what you need to check with your lawyer friend about. Try not to sign anything as yourself but instead sign everything as and for your compnay. You do not want to have any personal reponsibility if you can.
If you are thinking about filming depositions then that is a real big deal where you need a lot more authority through the courts than just taking video or audio. If all you are doing is photographing things like damages, car wrecks, street signs etc etc then you should do fine without court authority and certification ... kinda like a private investigator with a camera?
Good Luck. |
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08/29/2006 06:54:33 PM · #11 |
Probably includes medical photography as well, to document injuries from assaults and so forth. |
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08/29/2006 06:56:49 PM · #12 |
Originally posted by Prof_Fate: Originally posted by mystopia: Our attorney setup our LLC for $450 and the CPA charged another $400 to file paperwork with the Federal, State and City governments. Hope it helps. |
man, why do all my friends pick on Pennsylvania? Taxylvania they call it. Not quite - they just don't know how good they go it. To go into biz as a sole proprietor - $0. Register with the state, $0. Business license, tax license, $0.
$850 saved - can buy camera stuff to start the business! |
Agreed but he wants to setup a LLC not sole proprietor. Although one could still do the extra research to file a LLC themselves. Just more work.
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08/29/2006 07:59:50 PM · #13 |
Anyone who wants to set up their own business would do well to invest in some self-help legal books from Nolo Press -- they have lots of stuff just for this. |
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08/29/2006 08:04:39 PM · #14 |
Originally posted by PhantomEWO: Remember that in most states an LLC will really not protect you personally. |
Where did you hear that? It's pretty universal through every source I have seen or spoken to, that unless you are personally negligent, someone can sue the company, but not the owner and investors.
Also, in the event your LLC (or other corporation) goes bankrupt with significant debt, the bank (or other creditor) is only allowed to take the assets of the business to recover their losses. With a sole proprietership, the creditors can come after your personal assets AND those of anyone who has invested in your business. While you may be willing to place your own assets at unnecessary risk, most investors will hesitate.
Message edited by author 2006-08-29 20:09:02. |
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08/29/2006 08:13:56 PM · #15 |
LLC = Limited Liability Company
The whole point is to limit individual liability without the need of forming a corporation. |
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08/29/2006 08:34:19 PM · #16 |
Whew thanks Spaz and General .. I was going to say we asked about all of this before we chose the LLC, and we did because it does seperate us personally from the business. We also bought liability insurance to take care of any possible suits. (ours is not a photography business, hubby is an Integration Specialist and purchased the company he has worked for the last 7 years) We specifically hired the attorney to draw up sales contracts for this purchase, since he was doing that it was just as easy to let him file the appropriate papers for us as well because I do not have time for all the research and extra work to set up the LLC. |
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08/29/2006 08:41:11 PM · #17 |
OK, thanks for the all the responses. I had rather hoped that someone was familiar with legal photography and could lend some advice. Apparently it's a pretty large field. Yes it is similar to medical photography. The way he explained it to me is he needs photographic documentation of his clients claims. His current client was involved in an accident and has some obvious "scarring". He simply wants me to get some photographs of the "scars".
It is very similar to what I do at work. As a clinical photographer, one of my jobs is to photograph ocular pathologies to submit to insurance companies for authorization for procedures. It's one of the rare times when you want your photograph to look as "bad" as possible. |
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08/29/2006 08:54:59 PM · #18 |
Good luck with it Palmetto .. it sounds like an interesting job! |
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08/29/2006 09:01:55 PM · #19 |
Originally posted by Palmetto_Pixels: ... It's one of the rare times when you want your photograph to look as "bad" as possible. |
What are the rules on editing such photographs? Or, are there any? |
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08/29/2006 09:13:35 PM · #20 |
Originally posted by Spazmo99: Originally posted by PhantomEWO: Remember that in most states an LLC will really not protect you personally. |
Where did you hear that? It's pretty universal through every source I have seen or spoken to, that unless you are personally negligent, someone can sue the company, but not the owner and investors.
Also, in the event your LLC (or other corporation) goes bankrupt with significant debt, the bank (or other creditor) is only allowed to take the assets of the business to recover their losses. With a sole proprietership, the creditors can come after your personal assets AND those of anyone who has invested in your business. While you may be willing to place your own assets at unnecessary risk, most investors will hesitate. |
Well lets just say personal experience. I brought a partner into my business who embezzled more than a quarter million dollars, didn't pay employee withholding taxes to the states and IRS and didn't pay sales taxes the LLC collected. Since I was the money behind the 5 business within four different LLC's in two different states. I know. The companies were let go, banks sold assets and then filed law suits of more than $2 million against me personally. I was foolish enough to personally guarantee the debts when I started the businesses. Don't think for a minute that they won't come after you. Even if you are not a guarantor they will file suit and you will not be able to afford defending the suit even if you could win. In my case I am going after the main franchisor because the company owner was fully aware of the illegal activities of my partner and protected him. Believe me ... an LLC is important but will NOT protect you from the lawsuits, it just makes it a little harder for the creditors ;). So do NOT sign anything as yourself but only as the signiture for the company, it'll help a "little". |
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08/29/2006 09:19:37 PM · #21 |
Originally posted by L2: Originally posted by Palmetto_Pixels: ... It's one of the rare times when you want your photograph to look as "bad" as possible. |
What are the rules on editing such photographs? Or, are there any? |
Very good question indeed. I would imagine that any "altering" of the images would be unacceptable. |
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08/29/2006 10:48:09 PM · #22 |
Originally posted by PhantomEWO: Originally posted by Spazmo99: Originally posted by PhantomEWO: Remember that in most states an LLC will really not protect you personally. |
Where did you hear that? It's pretty universal through every source I have seen or spoken to, that unless you are personally negligent, someone can sue the company, but not the owner and investors.
Also, in the event your LLC (or other corporation) goes bankrupt with significant debt, the bank (or other creditor) is only allowed to take the assets of the business to recover their losses. With a sole proprietership, the creditors can come after your personal assets AND those of anyone who has invested in your business. While you may be willing to place your own assets at unnecessary risk, most investors will hesitate. |
Well lets just say personal experience. I brought a partner into my business who embezzled more than a quarter million dollars, didn't pay employee withholding taxes to the states and IRS and didn't pay sales taxes the LLC collected. Since I was the money behind the 5 business within four different LLC's in two different states. I know. The companies were let go, banks sold assets and then filed law suits of more than $2 million against me personally. I was foolish enough to personally guarantee the debts when I started the businesses. Don't think for a minute that they won't come after you. Even if you are not a guarantor they will file suit and you will not be able to afford defending the suit even if you could win. In my case I am going after the main franchisor because the company owner was fully aware of the illegal activities of my partner and protected him. Believe me ... an LLC is important but will NOT protect you from the lawsuits, it just makes it a little harder for the creditors ;). So do NOT sign anything as yourself but only as the signiture for the company, it'll help a "little". |
Ummmm, it sounds like there was a lot of criminal activity going on, not just simple bankruptcy. Sorry to hear that you got mixed up with such people, that's too bad.
It's true the LLC is not the aegis it might seem, certain guidelines do have to be followed or the courts can pierce the corporate veil that limits liability, but if the guidelines are followed, an LLC is greatly superior to a sole proprietorship.
Also keep in mind that if you personally get sued and a judgement is filed against you, that will damage your personal credit. As an LLC, if you get sued and the court finds your company liable, it shouldn't hurt your personal credit.
Message edited by author 2006-08-29 22:58:47. |
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08/29/2006 11:14:30 PM · #23 |
Originally posted by yanko: Agreed but he wants to setup a LLC not sole proprietor. Although one could still do the extra research to file a LLC themselves. Just more work. |
An LLC can be a sole proprietor, in which case you can file schedule C.
There are other advantages to an LLC. You have a business name, and people treat it more seriously. For example, instead of telling the rental car clerk that you're self-employed (which seems to trigger a lot of questions on thier part), you can give them a company name (unless its "your name, LLC" :-)
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08/30/2006 01:44:36 PM · #24 |
I have read about court cases where a corporation̢۪s (LLC or other) owners have been held personally responsible for the company̢۪s liabilities. Typically in those cases the court has found that the corporation was set up for the express purpose of shielding the individual owner(s) from personal liability for the company̢۪s actions or practices. So, yes, you can be held personally for your company̢۪s actions regardless of any incorporation status.
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08/30/2006 01:47:15 PM · #25 |
Originally posted by AllgoodPics: I have read about court cases where a corporation̢۪s (LLC or other) owners have been held personally responsible for the company̢۪s liabilities. Typically in those cases the court has found that the corporation was set up for the express purpose of shielding the individual owner(s) from personal liability for the company̢۪s actions or practices. So, yes, you can be held personally for your company̢۪s actions regardless of any incorporation status. |
That's what I said.
It's called "piercing the corporate veil". If you click on the link in my earlier post, it explains some of the reasons why the courts will take such action. |
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