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03/07/2009 04:09:55 PM · #1 |
| Ok, so my photography business is starting to really pick up some steam (yippee!). I was wondering if you pros out there could give me some info (or send me links to good info) on writing up contracts, legal issues like paying taxes, incorporating yourself vs LLC... I can (and have) googled but would like to get a bit of feedback from those already doing it and thought to start here. Thanks folks! |
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03/07/2009 07:36:32 PM · #2 |
| In NYC it might be a good idea to get a good accountant. That person will be able to help you with the decisions about S Corporations, LLC, and sole proprietor etc as well as business insurance. It pays you to get an accountant involved early. If you like, PM me and I will send you details of the person we use for many years. |
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03/07/2009 07:40:51 PM · #3 |
Insist on cash only payment.
Convert cash to gold.
Hold the gold yourself, not just paper saying you have gold. |
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03/07/2009 09:55:23 PM · #4 |
LLC's are not a bad idea. Think about it like this, let's say that you charge $2500 for a wedding but when you get there your equipment doesn't work or you take some crap pictures and she decides to sue you. The good thing about an LLC is you won't lose everything you own when she sues you.
Besides you can get them pretty cheap too. |
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03/07/2009 10:00:26 PM · #5 |
| Careful about thinking that LLC's can protect you in ALL cases of people suing you.... The LLC vail is more easily pierced then other business forms in some cases and cannot replace decent insurance. Talk to a suit for this stuff quickly if your serious..... |
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03/07/2009 10:01:47 PM · #6 |
find a CPA or other good tax person as they will pay for themselves in taxes not paid (legally).
YOu need to keep records of every business expense, and if you run it from your house your prop taxes, utilities, etc. For you biz expenses you have cost of goods sold of course, but samples are advertising as is of course, advertising. Basically the Feds want it categorized and you get to decide what goes where. Things that last more than a year (computers, furniture, camera/lights/lenses) are depreciated where other things are expenses (paper, office supplies, phone, computer software, etc). And track the miles you drive for the business - date, where you went, start and end milage. at the end of the year add up those miles and you get a tax deduction for them.
until you make more than $X amount remain a sole proprietorship. Any kind of incorporation costs money to do and then you have corporate taxes and rules to follow ($1000/year in extra costsmy CPA says) What you can save as a corp (LLC is a type of corp) is you can take some income as profit instead of a salary, and on profit the business doesn't have to pay it's share of the FICA tax (7.5%). So once you begin to take $30,000 in personal taxable income consider incorporating. Going LLC to reduce your liability is BS. LLC's were created for doctors so when they have a joint practice and one of htem butchers a patient the OTHERS are safe- the guy that screwed up will still be sued and pay.
contracts...hate to say this, but get a lawyer. Its a PITA and not cheap, but if someone you have a contract with gets pissed enough to want to sue you or get out of the contract the first thing they'll do is take it to their lawyer - it's too late then to find out how you did on writing a contract!
DO EVERYTHING LEGALLY! Meaning collect and pay sales tax, get a business license if your state requires it, etc. Why? First it's the right thing to do of course. Secondly, some photogs are assholes (plain and simple) and will see you as competition - they may turn you in to the authorities and you dont' need the hassles. Also, you'll be advertising your business so the local govt will find out you exist. Better to be legal first than have some guy show up at the door offerin you fines or worse, and oh yeah, stop operating your business immediately. Not the pleasant way to become unemployed! And as you advertise for clients you will get them - perhaps the local IRS chief's daughter is getting married and he comes to see you, but checks you out first and finds you've never paid taxes...or some similar nightmare. It's not worth the risk.
Same for insurance - get business liability insurance and that will cover you for all sorts of things.
There are many threads here on these subjects - just search some.
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03/08/2009 03:02:40 PM · #7 |
Thank you everyone for your input. Very helpful indeed. :)
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