Business questions

[MuddyRiver]

I do not know if this is the right topic but I'm curious about a couple of things. Lately I've been doing more wedding photography as well as general portrait shoots. Typically I do them for friends but sometimes I do them for strangers. Sometimes people pay me for them. Should I be doing something along the lines of taxes? Would I be considered a business? Because people hate me? Do I need to be insured? Eventually I would like to expand and maybe even one day do photography as a full-time job but currently it's just something I do on the side in addition to my full-time job, for fun and for some extra money now. These may sound like silly questions but I really have no idea about these things. Thanks!

 

[jwbryson1]

Should I be doing something along the lines of taxes? Would I be considered a business? Do I need to be insured?

If you are working in a trade or business and being paid, then that is taxable income to you that you should be reporting as gross income on your tax return. If you are working for profit, you would be operating a business. Insurance will help to protect you in the event of your liability but more importantly, you should consider incorporating or establishing another layer of personal protection such as through an LLC.

Talk to your attorney or accountant for details.

 

[ShooterJ]

Legally speaking.. if you are setting a price and charging .. yes, you'd be responsible for taxes. That would be true of any business. Insurance is a good idea, also true for most business.

You should also do some research on your local small business laws and guidelines.

I would do ALL of that research and find out what's required of you to operate as a business before you start charging people on a regular basis.

If you DO go forward with it.. set up a business plan. For information on forming a small business, visit the SBA website (small business administration)... assuming you're US based.

 

[ShooterJ]

In fact ... here you go..

http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business

 

[KmH]

There are lots of different kinds of business taxes. Some are federal, some are state, so you need to find out what Texas requires.
Texas requires you to charge, collect, and forward to them any applicable sales and use taxes.
Sales and Use Tax

Being self-employed you may also have to pay unemployment taxes - Unemployment Tax Information ? Texas Workforce Commission

Not having business liability insurance, is like driving a race car that has no seat belts or roll cage. Your business will die when the first accident occurs.

IIRC, the state of Texas (and some other states) pay anyone who 'drops a dime' on a business that is not legal, a reward that is a % of the fines, penalties, and back taxes they collect.