- Joined
- Aug 15, 2013
- Messages
- 13,695
- Reaction score
- 3,369
- Location
- SE Michigan
- Can others edit my Photos
- Photos OK to edit
In Michigan, as I'm sure other states, depending upon how you operate can help in making a decision.
You can run as a "Hobby". Michigan has about 7 line items that you must qualify to be a hobby.
In essense not taking any money for income is a big one (not writing things off in taxes, etc).
The IRS and state normally identifies a profit amount as a business, I think it's $800 per year.
You can get a simple Sole Proprietorship / DBA (Doing Business As) from the County. This is something usually under $25. Then you are officially a business. But as a DBA you are also totally liable both personally and professionally. But you can write off a new computer, software, camera gear, space in the house to operate, marketing costs, marketing material etc etc etc
Then you can move up to a Incorporation or a LLC. This limits your liability.
The Insurance also can help limit your liability or loss (theft)
and so on and so forth
Also your DBA name is only a county name The next county could have a photog DBA with the same name. As you move up to incorporation and LLC then there is a wider state search for similar names.
FYI that State definition of a "Hobby" is like a business hobby. Not a "hobby" where we buy a camera and take pictures of everything that we enjoy and have fun doing.
If you start charging people Sales Tax and pocket it, then the state finds out about it. Well, that could be a problem.
If you do an odd job here or there and don't charge alot I can't see how it hurts, but refer to that $800 rule.
You can run as a "Hobby". Michigan has about 7 line items that you must qualify to be a hobby.
In essense not taking any money for income is a big one (not writing things off in taxes, etc).
The IRS and state normally identifies a profit amount as a business, I think it's $800 per year.
You can get a simple Sole Proprietorship / DBA (Doing Business As) from the County. This is something usually under $25. Then you are officially a business. But as a DBA you are also totally liable both personally and professionally. But you can write off a new computer, software, camera gear, space in the house to operate, marketing costs, marketing material etc etc etc
Then you can move up to a Incorporation or a LLC. This limits your liability.
The Insurance also can help limit your liability or loss (theft)
and so on and so forth
Also your DBA name is only a county name The next county could have a photog DBA with the same name. As you move up to incorporation and LLC then there is a wider state search for similar names.
FYI that State definition of a "Hobby" is like a business hobby. Not a "hobby" where we buy a camera and take pictures of everything that we enjoy and have fun doing.
If you start charging people Sales Tax and pocket it, then the state finds out about it. Well, that could be a problem.
If you do an odd job here or there and don't charge alot I can't see how it hurts, but refer to that $800 rule.