Legal or Illegal?

[CourtneyCollins]

I guess that is my question. I'm totally sorry if this has been posted somewhere, but I am unable to find the right answer....

I am 18 and photography is more of a hobby for me, but I have had SO many people ask for me to take their photographs and how much do I charge. I recently started getting into trying out studio lighting and that turned out to be a hit for me. I have had two sports teams request for me to take their pictures.... Now my question.. Is it illegal for me to take money from them? I usual do not even ask for money, but I have had so many people telling me it's silly for me to be doing this for free.

No, I do not have a business and no I will more than likely not be making more than $3,000 a year from this. I've always been scared to charge people for my pictures because I do not know if that is legal for me to do or not.....

 

[480sparky39 38]

Is it illegal to charge money for taking photos?

Two words: Heck and No.

That said, there are other considerations. If you need a license, permit, insurance, sales tax etc. for starters. But what you're wanting to do is the basis of the Free Enterprise system.

And you can certainly do things that would make it illegal. Say, you take their money and never show up to take the photos. Or refuse to deliver any images to them.

 

[Vtec44]

They pay you for your services, nothing illegal about that. When you accept money, there are expectations. You want to make sure the expectations are clear on both sides. Then the question of tax since there's now money involved.

 

[CourtneyCollins]

They pay you for your services, nothing illegal about that. When you accept money, there are expectations. You want to make sure the expectations are cleared on both sides. Then the question of tax since there's now money involved.

The whole tax part is what scares me. I don't understand it when it comes to taking someones pictures & printing off their photos afterwards.

 

[Tailgunner]

If you accept money for work, you ow taxes. You can just get a DBA (doing business as) license through the court house using your SSN. It's simple. Then you can report everything.

Now you're going to run across some folks who are absolute and strew reporting every cent. I on there other hand don't see reporting anything under a grand but thats just me.

 

[Gary A.]

Depending on how much you make and how you set yourself up and how you carry out your transactions ... you can operate either illegally or legally.

 

[480sparky39 38]

The whole tax part is what scares me. I don't understand it when it comes to taking someones pictures & printing off their photos afterwards.

The problem with taxes is you're probably going to end up losing money on the deal from a business standpoint. Sure, you'll have income, but you'll have deductions as well. So let's deduct your camera... say it was $1000. And you charged $500 for the work & images you provided. You have a net loss on your Schedule C of $500.

Sure, that lowers your tax liability, but if you continue to lose money, the IRS may well consider your little business venture a 'hobby' and disallow all your deductions. Uncle Sam expects you to eventually turn a profit. If you continually lose money year after year, you may find yourself with a nasty letter from the IRS.

 

[KmH]

Being 18 you are now legally considered an adult and can enter into contracts, both verbal and written.

To find out what is needed be a legal business where you are in Oklahoma check with your local City or County Clerk and the State Of Oklahoma.
As mentioned, the city/county where you are will likely require your business have liability insurance to be a legal business.

If you are self-employed you are required to file a US Federal Income tax return if you have more than $400 a year of self-employment income.
Being self-employed, you also need to pay FICA taxes on income you earn.
If you work for someone else and are an employee, your employer pays 1/2 of the FICA taxes
Being self-employed you pay all of the FICA taxes owed on income you make from your self-employment.
Another aspect of being self-employed is that you are required to make quarterly federal income tax payments.

Business or Hobby Answer Has Implications for Deductions

Oklahoma Tax Commission
Oklahoma resident individual(s) are required to file an Oklahoma income tax return when they have sufficient gross income to file a Federal income tax return.

If self-employed the state of Oklahoma will also expect you to collect and forward to them any Sales tax they are due for products, like prints or digital files on a disc, you sell.

Oklahoma also has Use taxes and likely require a self-employed person to also pay unemployment insurance taxes.

Once every 3 months or so I hear about another illegal business here in central Iowa that got caught.
It's usually the state that finds out first and sends a bill for income, sales, and use taxes they think they are owed. The state tacks on whatever penalty and fine dollars they decide need to be assessed.

 

[imagemaker46]

Two choices, keep a record of all income and add to your tax forms. Second choice take cash and don't declare it. I believe there are a lot of people in your position, and not just in photography that are working under the table. As governments take more and more from us, the underground cash market becomes more attractive. You're not making tens of thousands off this. There are also thousands of people selling on ebay that never declare the income, it's just a hobby.

If your income starts to climb, it would be in your best interest to record and pay the taxes, chances are they won't be much.

 

[Designer]

Is it illegal for me to take money from them?

Make some phone calls.

Call a lawyer who can guide you through the procedures for setting up a business.

Call your municipality to see if you need a license.

Call the fedgov and your state to see what you have to do to report income and pay taxes.

 

[runnah]

Is it illegal for me to take money from them?

Make some phone calls.

Call a lawyer who can guide you through the procedures for setting up a business.

Call your municipality to see if you need a license.

Call the fedgov and your state to see what you have to do to report income and pay taxes.

Don't get on people's radars!

If you don't expect to make more than a couple grand just do it on the side and keep it quiet.

 

[480sparky39 38]

..............It's usually the state that finds out first and sends a bill for income, sales, and use taxes they think they are owed. The state tacks on whatever penalty and fine dollars they decide need to be assessed.

And usually it's something like - Taxes due: $27.83. Penalty: $1,500.

And the penalty is not assessed due to your actions, it's due to their just plain being greedy.

 

[runnah]

I always like to think my tax dollars go to something helpful like building a school or a bridge, but chances are they go to some fat politician's bar tab.

 

[Designer]

I always like to think my tax dollars go to something helpful like building a school or a bridge, but chances are they go to some fat politician's bar tab.

I don't have any delusions about where my tax dollars go, but not paying taxes that are due is not the way to fix this country's political ills.

 

[runnah]

I always like to think my tax dollars go to something helpful like building a school or a bridge, but chances are they go to some fat politician's bar tab.

I don't have any delusions about where my tax dollars go, but not paying taxes that are due is not the way to fix this country's political ills.

No? Vote with your wallet I always say...