Considering starting small business - LLC, Inc, etc?

Discussion in 'General Shop Talk' started by ecnal, Nov 8, 2009.

  1. ecnal

    ecnal TPF Noob!

    Joined:
    Jun 10, 2009
    Messages:
    134
    Likes Received:
    0
    Location:
    Plymouth, MA
    Can others edit my Photos:
    Photos OK to edit
    Hey. I'm contemplating in the future starting a small out-of-home business. Simple stuff; selling prints, senior portraits, etc. Just tossing around ideas now.

    For those of you that do this - what are you? LLC? Inc? Sole Proprietorship?

    I know I could just do it 'under the table', but that opens up alot of legal issues - taxes, legal issues, etc.

    Just curious!
     
  2. KmH

    KmH Helping photographers learn to fish Supporting Member

    Joined:
    Apr 9, 2009
    Messages:
    38,233
    Likes Received:
    5,007
    Location:
    Iowa
    Can others edit my Photos:
    Photos OK to edit
    Your safest bet is to consult a local attorney for advice.

    For a small out-of-the-home business a sole proprietorship is the easiest to set up and the least costly to maintain. However, both your business and personal assets are at risk were you to lose a substantial law suit. The way to minimize your financial exposure is making sure you have quality business liability insurance. Your homeowners insurance likely won't cover any aspect of an in-home business. If you currently have your camera gear insured under your homeowners policy, the instant you start using your gear in a business it will no longer be covered by the home policy.

    Being a Limited Liability Corporation (LLC) removes your personal assets from exposure, but requires more routine reporting and record keeping, which usually means retaining a CPA to handle all the record keeping and reporting requirements. So, the cost to setup and maintain a LLC is higher than the cost for maintaining a sole proprietorship. LLC's are not generally recommended (because of the cost to maintain them) until yearly net income exceeds $40,000 or so.

    There are several kinds of corporations. Small businesses that incorporate usually opt for the sub-chapter S type of corporation. As above, the time to seriously consider incorporation is when yearly revenue hits the 6 figure range. Stepping up to a sub-chapter S corporation will include an increase in record keeping and reporting requirements also increasing the monthly costs.
     
    Last edited: Nov 16, 2009
  3. Moonb007

    Moonb007 TPF Noob!

    Joined:
    Jul 27, 2008
    Messages:
    221
    Likes Received:
    1
    Location:
    Houston
    Can others edit my Photos:
    Photos NOT OK to edit
    That is very helpful info.
     

Share This Page

Search tags for this page

advice starting llc photography

,

considering starting an llc

,

llc inc etc

,

starting an llc for photography

,

www.businessllcinc