Discussion in 'General Shop Talk' started by etnad0, Dec 17, 2011.
These steps are really helpful. Everything is there. Thanks for sharing.
Awesome post. Thanks for sharing.
What risks do I run taking pictures for a small monetary cost without doing all of the things here... Such as the legal paperwork?
For example, I sometimes charge my friends $30 - $50 for a shoot for them to cover gas and editing time. Are there risks involved there?
You risk serious financial burdens from a variety of sources if you do not have a legal business - customer law suits, local, state, federal, fines and penalties.
Charging for your photography services, gas, editing time, selling prints, discs of photos, etc - is running a business regardless if your customers are friends, family, or someone who contacted you through your web site.
More start up, self-employed businesses have been financially done in by failing to collect and forward state sales taxes than any other type of government sanction. You may also have to pay Use taxes.
You have to have effective accounting procedures in place and have to meet various reporting requirements. If you don't, the government people will estimate, and they rarely estimate low.
Sales and Use Tax
Starting & Managing a Business | SBA.gov
Obtain Business Licenses & Permits | SBA.gov
Understand Business Law & Regulations | SBA.gov
Regular insurance, like homeowners and car insurance usually does not cover a business, legal or otherwise.
The minimum amount recommended for business liability insurance is $1,000,000, but $2,000,000 is better. You likely need an Inland Marine insurance rider to cover all your camera, computer, software, etc you use for the business. You also need to check about insurance your car when using it for business.
It is my understanding that Texas, like other states, gives a % of unpaid taxes, fines, penalties they collect as a reward to someone reporting your not legal business to them.
Great post, thanks for sharing!
Thanks for the information. Its been really helpful
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