Interested in Photography as a business

[petahsumething]

hello all you business owners. i have a quick question. I was thinking of teaming up with a family member to opening our own photography business but i was wondering what should we be, partnership, corporation, or sole proprietorship? if so, why and what are the pros and cons for deciding on that business type.

thanks in advance guys!

:thumbup:

 

[Scatterbrained]

You could google business structures. Read the links on a site like this: Choosing a Business Structure: Sole Proprietor, LLCs, Incorporations - Entrepreneur.com

There are a lot of questions whose answers will determine what is best for you. What kind of arrangement are you and your relative planning? Will you both be working, or will one be supplying the capital while the other works?
Will you be working in a situation where you will need liability protection? Can you trust your relative to make decisions on your behalf? While I've seen plenty of family businesses that work, it usually isn't when you have two family members of the same generation participating as equals. Just a thought.

 

[petahsumething]

You could google business structures. Read the links on a site like this: Choosing a Business Structure: Sole Proprietor, LLCs, Incorporations - Entrepreneur.com

There are a lot of questions whose answers will determine what is best for you. What kind of arrangement are you and your relative planning? Will you both be working, or will one be supplying the capital while the other works?
Will you be working in a situation where you will need liability protection? Can you trust your relative to make decisions on your behalf? While I've seen plenty of family businesses that work, it usually isn't when you have two family members of the same generation participating as equals. Just a thought.

both of us will be working the business, either behind the camera, editing the photo's, co-coordinating the clientele, customer service, etc. we are both the same age. We are not blood relatives, but he is my bro-in-law. I can trust him in making decisions.

Can you give me a example for getting a liability protection? this business is just going to be a side thing. slowly but surely it will snow ball to something huge. but for now, its baby steps. i just have lots of questions.

 

[Scatterbrained]

I really didn't want to type it all out in one post which is why I provided a link that would give you basic info. Aside from purchasing liability insurance, the structure of the business will effect the ultimate level of liability of the owners. If you decide to operate as sole proprietors (typical small business owners) you and he are the business. You're personally liable for the debts and actions of the business. Incorporating the business creates a separate entity in the eyes of the law and removes you personally from much of the businesses liability. Of course the nuances of these things may vary from the US to Canada so I can't really get too detailed but it is something you will have to figure out. You could always starts as a sole proprietorship/general partnership and adjust from there as the business grows.

 

[petahsumething]

I really didn't want to type it all out in one post which is why I provided a link that would give you basic info. Aside from purchasing liability insurance, the structure of the business will effect the ultimate level of liability of the owners. If you decide to operate as sole proprietors (typical small business owners) you and he are the business. You're personally liable for the debts and actions of the business. Incorporating the business creates a separate entity in the eyes of the law and removes you personally from much of the businesses liability. Of course the nuances of these things may vary from the US to Canada so I can't really get too detailed but it is something you will have to figure out. You could always starts as a sole proprietorship/general partnership and adjust from there as the business grows.

thanks for your words.... i really appreciate it

 

[KmH]

You need the advice of a qualified attorney familiar with Canadian law and the applicable stautes of the province where the business will be located. The attorney will help you determine what type of business will work best for you. The more removed from personal liability liability becomes, the greater the routine reporting requirements the government has.

You will also need to check with the local authorities about business licensing/registration. They will need to check to ensure someone else is not already using the business name you want to use. If your business name is not your given name(s), it's likely there will be additional paperwork you will be required to complete.

Don't forget to speak with an accountant about the proper way to set up business banking accounts and business record keeping, and your insurance agent will be able to advise you what kinds of insurance you will need before you can become a licensed/registered business.

 

[Tbini87]

You need the advice of a qualified attorney familiar with Canadian law and the applicable stautes of the province where the business will be located. The attorney will help you determine what type of business will work best for you. The more removed from personal liability liability becomes, the greater the routine reporting requirements the government has.

You will also need to check with the local authorities about business licensing/registration. They will need to check to ensure someone else is not already using the business name you want to use. If your business name is not your given name(s), it's likely there will be additional paperwork you will be required to complete.

Don't forget to speak with an accountant about the proper way to set up business banking accounts and business record keeping, and your insurance agent will be able to advise you what kinds of insurance you will need before you can become a licensed/registered business.

Hey KmH,
if you use your last name then add "Photography" to the end do you have to file for a fictitious business name? I am assuming you do, but not exactly sure. Thanks.

Travis

 

[KmH]

Hey KmH,
if you use your last name then add "Photography" to the end do you have to file for a fictitious business name? I am assuming you do, but not exactly sure. Thanks.

Travis

Check with the City Clerk where you live. It varies by city, county, state.

 

[manaheim]

I'd be very wary of business ventures with family.

It's not impossible, but it is fraught with peril.

Be certain you do everything by the book, have agreements written down, be sure there is a clear documentation on ownership of business and business materials and equipment, profit sharing, etc.

 

[Tbini87]

Hey KmH,
if you use your last name then add "Photography" to the end do you have to file for a fictitious business name? I am assuming you do, but not exactly sure. Thanks.

Travis

Check with the City Clerk where you live. It varies by city, county, state.

thought that was what you would say. and since you are from iowa you prob don't know about CA laws. i will look around my city website. thanks.

 

[Tbini87]

hello all you business owners. i have a quick question. I was thinking of teaming up with a family member to opening our own photography business but i was wondering what should we be, partnership, corporation, or sole proprietorship? if so, why and what are the pros and cons for deciding on that business type.

thanks in advance guys!

:thumbup:

i don't think a sole proprietorship is a choice if you guys are going to be partners. it might be if you were going to be the owner and pick him up as an employee, but otherwise you are probably looking at a partnership, llc or corp. a general partnership will leave you with the same liability issues as a sole pro, but will be the easiest and cheapest of the options.

 

[Christie Photo]

I'd be very wary of business ventures with family.

It's not impossible, but it is fraught with peril.

Be certain you do everything by the book, have agreements written down, be sure there is a clear documentation on ownership of business and business materials and equipment, profit sharing, etc.

^^^^
THIS!!

I can't agree more. Sadly, this is more likely to end in a damaged family relationship than in success. Be sure you're willing to take the risk... the stakes are very high.

Good luck.

-Pete