Is it necessary to really have a business licence?

[Rwsphotos]

Its worth it if they get reported. How likely is it that they will get reported??? your guess is a good as mine. But when they get sued or threatened with a law suit or have The better business bureau called by an angry customer which will eventually happen if they are selling their photography it will be to late for that part time mom with a camera to protect herself. Does not matter if she is only part time supplementing there are no exceptions when you start taking money.

 

[12sndsgood]

the one thing that got me was sales tax. if your pretending to be a business the state wants there sales tax. and if you don't pay it, and they find out your doing business and can not verify money then they just hit you with a standard fee. $500 a month Is what Indiana decides is an average sales figure so that is the bill they send you. Yeah nothing like being in business for a few months, forgetting to turn in my sales tax for a month and then getting that bill in the mail. Talk about freaking out.

So, let's say I register as a business, but in six months' time, I haven't actually sold anything, or maybe I make a $25-50 sale two of those six months. Am I gonna hit with a bill like that because they just ASSUME I must be making money since I'm "in business?"
Would I have to file a sales tax report every month JUST to say I didn't sell anything? Because THAT sounds like a giant pain in the sit-upon.

The idea of all the extra paperwork is what keeps me from seriously considering making the leap. Since I'm NOT registered, though, I also go out of my way to NOT charge money for anything I do. If I do a shoot for someone it's either free, or maybe they buy me lunch. If I "sell" a print, I sell it for what it cost me, because I don't want the hassle of keeping up with all that, when I probably wouldn't make $500 a year from all of it, anyway (and by "make," I mean gross, not net. I probably wouldn't MAKE anything in the way of profit).

You would really need to check with your state on that. In Indiana they have made it pretty easy on me. I don't have to pay sales tax on my session feels just on items sold. I mainly sell prints off my site right now so that's all I pay sales tax on. each month I just hop on there site, put in the amount I sold and in about 30 seconds I either come out with a 0 or I owe a few bucks. I have forgotten do do it here and there and im able to just go in and put the info in. you can pay it quarterly but you have to have a good estimate of where you would be at. I had no clue so I just choose to do it monthy. For Indiana it literally takes me maybe 3-4 minutes to take care of.

 

[12sndsgood]

Simple answer?? Don't know if there is one. Is it necessary to be registered as a business? Seems to depend... on where you live, how much you make, what type of photography work you're doing and what expenses you have, etc. etc.

How many people that have facebook based photo businesses, or work from craigs list, will have registered anything? Are people that go out and buy an entry based digi cam, that play on weekends shooting weddings, portraits, babies, sports, on a part time basis going to bother to tell any government officials they are taking and selling pictures for cash? I have my doubts that many have any kind of registration at all anymore. It's too easy not to.

The advantages to having a registered business are obvious, but for many part time professionals it probably isn't worth the paperwork..

Hard to say how many do or don't I think you can take a look at a lot of companies and probably guess pretty well who does and who doesn't, me Im just not willing to risk my livelihood to try and sneak the system. I have a friend who isn't insured and not thru the state. and to me that's just scary. You never know when something will happen, and when it does the state would likely go after you big time for all that money it assumes its loosing, plus penalties and fines. I mean Ive been in business for around 16 months. at the states estimate of $500 a month in taxes i'd be looking at an easy 8 grand right there right off the bat. that a couple grand more then ive made so far. not to mention i'm sure there would be federal repercussions.

To be honest for me where i'm at the paperwork was way easier then I thought it would be. But I would put money that i'm one of the exceptions to the rule and not the norm. Think the big question is these facebook businesses out there, are they making any money at all.

 

[KmH]

For the purposes of this tread, the term license doesn't refer to a certificate of expertise, but a permission to operate a business.

One of the reasons business registration/licensing is required is to make sure multiple businesses in the same industry do not have the same name.

 

[Gavjenks]

It depends on your jurisdiction. It is indeed necessary in some places. In my town and state for instance, if you're running a home business, you need a license if you want to hang a sign bigger than such and such many inches in size, or if you want to have walk in clients, or if your business is too obvious from the street, etc. Otherwise no. And the state requires licenses mainly for specific types of special businesses, like food service. Just call up your local chamber of commerce or relevant government office and ask.

 

[pixmedic]

License makes for honorable and business legally for you.

 

[JacaRanda]

For instance: Licenses and Permits - City of Mission Viejo

Not requiring a business license from the City of Mission Viejo in no way relieves potential businesses from federal, state, and/or local requirements. You will need to contact the Community Development Department to discuss whether you business will need to obtain any additional permits, approvals, or inspections.

 

[vintagesnaps]

I'm sure Scott that there are people out there who have cameras and take photos and list themselves on craigslist or facebook as photographers and may or may not keep track of what they get paid, and may or may not report the additional income, etc. Doesn't necessarily mean they're actually photographers much less professionals. Guess it's up to each person how they want run their business or at what point it's necessary to keep records and file taxes etc.

 

[DiskoJoe]

This is a straight up question. All through the forum people are constantly pushing that new photographers must have a licence, get insurance, and follow all the state and provincial laws of the land, talk to lawyers, make it all legal. My feeling is that none of this really necessary or practiced by the majority of people just starting out, or attempting to work as professionals. If someone is shooting and accepting payment for work, declares it as income, (but pays the year end taxes on that income) They doesn't collect any taxes for the work, but charge it straight up , a $300 shoot is $300, with no additional tax added. I know that not collecting the taxes, not being able to right off gear, or office supplies, office space( a room in the house) doesn't get you those little perks to help offset some costs.

So the question, Is it necessary to be registered as a business to take pictures? Does it really matter for 99% of the starting professionals?

You only need a license if you take money under a business name as opposed to your name. But get the insurance if you get real contracts.

 

[The Barbarian]

The fine for fishing with out a license in Maine is $250, the cost of a license is $30.

[machiavelli]So, if you have a one-in-ten chance of getting caught, then the expected payoff for not getting a license is $20.[/machiavelli]

 

[KmH]

You only need a license if you take money under a business name as opposed to your name. But get the insurance if you get real contracts.

That may be true in Houston.
Requirements are local, and vary by city, and town.

If someone gets injured during a shoot, a photographer can be (and have been) sued for liability even if, and/or no written contract was involved.