What are the proper steps in becoming a legitimate (legal) photographer?

[The_Traveler]

Come on, cut out that passive aggressive crap for just a while.

 

[tirediron]

As with legal & contractual matters, seek the advice of a local professional. Spend the $100-200 for a 30 minute consultation with a tax accountant/CPA who works in your area and can give you the advice you need for both your situation and your area.

 

[STiZzle2010]

As with legal & contractual matters, seek the advice of a local professional. Spend the $100-200 for a 30 minute consultation with a tax accountant/CPA who works in your area and can give you the advice you need for both your situation and your area.

I think that this is my best bet as well. Thank you so much!

 

[BananaRepublic]

Collect 25 tokens from the back of Kellogg's boxs.

 

[vfotog]

Valid point. What paperwork do I need to file for something like this?

For me, it's the W9 form they have to fill out. Then they get a 1099 from my CPA. You probably want to discuss this with a CPA or someone who's well versed with the tax code.

I think that even mentioning W9s and 1099s is just adding unnecessary confusion to the situation. Vtec44, you as a business are issuing 1099s to people working for you who are not actual employees. I assume they are earning enough from you to meet the $600+ annual reporting threshold. If the OP doesn't follow the majority opinion here and goes ahead and starts charging, this is something he's not likely to be involved in. It sounds like he wants to do portraiture on a small scale, so the majority of his customers won't be businesses. Personal payments are not reportable. If he does some work for a business, they should ask him for a W9 at the outset and if over the course of the year he meets the threshold, they must issue him a 1099. OTOH, the lady next door who wants pics of her kids, if she were to be actually paying over $600, isn't going to ask for a W9 and then in January issue him a 1099. However, whether he receives any 1099s or not, he needs to include all the income on his tax return.

You pretty much hit the nail on the head. I am only looking to do portraiture on a very small scale right now and I am not looking to make very much money. Most of my business would be from family, friends, and acquaintances. To do a shoot a couple of times a month is all I really expect and I just want to make sure that I can legally collect money for doing this as I do not need anyone knocking on my door. Should I just keep track of any income I make and give it to my tax guy at the end of the year or do I absolutely need to get licensed from the state, have insurance, and contracts?

For licensing, various locales are different. You can research online for your own state and city, and of course get local professional advice on that. Insurance is something you should have, especially with kids and their parents in the picture. And yes, contracts are important; you want your agreements on paper.

 

[KmH]

For Rhode Island business info see:
Office of the Secretary of State: Nellie M. Gorbea: Business Services

If you plan on selling anything, the state expects you to register with them and require you to collect and forward sales taxes to them.

Your town may have registration requirements in addition to state requirements. To be legal you're likely going to be required to have business liability insurance and it's a good idea (may be required) to keep business and personal money in separate accounts.

Over the years I have seen many photographers run afoul of state sales taxes, by the photographers not registering with their state, not collecting and forwarding state sales taxes and then being seriously financially burdened with a big tax bill that includes fines and monetary penalties.

When a photographer that got caught doing business 'under the table' does not have good financial records the state guesses how much tax they are due. They rarely guess low.

 

[STiZzle2010]

Thank you very much for this information! I will make sure I take all of the necessary steps before I start charging.

 

[imagemaker46]

You need a camera and people that will pay you. That's about it these days. Do a good job and more people will ask you, pocket the money and keep your day job.