Question about my pricing

[Tee]

For God sakes, take your address off your FB page. It's your parents address. Don't allow them to become collateral damage.

 

[KmH]

I'm not an accountant or lawyer but since you are not a registered business and do not collect sales tax and declare your earnings as income then I think that would make your pictures "work for hire" In the case of work for hire, the client owns the images including copyright and you would have to ask her permission to use them in your portfolio. If this is the case you will lose in small claims court.

Keith, where are you when we you?!

Nope, she's still an independent contractor, so work for hire would not apply. http://www.copyright.gov/circs/circ09.pdf

What the OP doesn't seem to understand is that she is liable for more than just state and federal income taxes. Apparently she does not understand state sales and use taxes.
Whoever has been advising her is doing her a huge dis-service by not recommending she establish a legal business before she started charging.

A few months back a lady started a thread because her town had caught her operating an unlicensed/unregistered business. The financial penalties and fines states demand when they don't get their sales tax monies alone can be very expensive.

Welcome to the Ohio Department of Taxation

Welcome to the Ohio Department of Taxation

Ohio Business Gateway | Starting a Business

 

[2WheelPhoto]

I'm still in college so I don't have a studio or anything. I'm doing this to get my name out there which I've been told to do by a lot of people is okay I just have to do taxes or something for it since it's another source of income. My teachers, other photographers that I know said it is okay for me to charge, etc.

FYI- My photography college professors say do NOT charge until license, tax ID, and insurance has been squared. They told us horror stories about those who have, matter of fact one was charged with a felony and a ton of fines. Matter of fact there is a whole course on that stuff, marketing, and the photog biz in general we have to take before becoming certified.

 

[tirediron]

In practical terms however, a verbal contract is generally worth exactly the same as the paper on which it is written.

I don't even know what that means...nice bumper sticker though.

Read it slowly; it means exactly what it says.

 

[jwbryson1]

Read it slowly; it means exactly what it says.

I can read no problem, but you miss the bigger point which is that oral contracts are legally enforceable. You give the pedestrian answer. I give the correct answer.

 

[MLeeK]

I forgot to meniton before in here... You REALLY should look into becoming an "aspiring" member of PPA. The resources there are extensive-including contracts and other things. I know you're a starving college kid, but it's REALLY worth every penny of the $17 bucks a month Join PPA | Professional Photographers of America

 

[Kra_Ash]

I forgot to meniton before in here... You REALLY should look into becoming an "aspiring" member of PPA. The resources there are extensive-including contracts and other things. I know you're a starving college kid, but it's REALLY worth every penny of the $17 bucks a month Join PPA | Professional Photographers of America

Alright, I'll have to look into that and save up for it. but I will.

 

[tirediron]

I can read no problem, but you miss the bigger point which is that oral contracts are legally enforceable. You give the pedestrian answer. I give the correct answer.

I'm sorry, I though perhaps English was not your native tongue. I realize that a verbal contract may be enforceable, however, as I would have thought anyone educated in legal matters would understand, it can be very difficult (often to the point where exorbitant fees would outweigh any satisfaction) to prove a verbal contract. For a matter this small (financially, not importance) I can't imagine it being feasible to attempt.

 

[cgipson1]

I can read no problem, but you miss the bigger point which is that oral contracts are legally enforceable. You give the pedestrian answer. I give the correct answer.

I'm sorry, I though perhaps English was not your native tongue. I realize that a verbal contract may be enforceable, however, as I would have thought anyone educated in legal matters would understand, it can be very difficult (often to the point where exorbitant fees would outweigh any satisfaction) to prove a verbal contract. For a matter this small (financially, not importance) I can't imagine it being feasible to attempt.

Gotta agree with Tirediron! I can just see it now

Judge: Did you say that?
Person 1: No... I never said that.
Person 2: Yes she did...she's lying!
Person 1: Prove it! Nyahhh nyaahhh!!!
Judge: Dismissed.. you idiots are giving me a headache!

 

[MLeeK]

I forgot to meniton before in here... You REALLY should look into becoming an "aspiring" member of PPA. The resources there are extensive-including contracts and other things. I know you're a starving college kid, but it's REALLY worth every penny of the $17 bucks a month Join PPA | Professional Photographers of America

Alright, I'll have to look into that and save up for it. but I will.

Surf around the public part of the website and forums over there. There is still a ton of information available to the public, there's just WAYYYYYY more on the inside. Like streets paved in gold more.

 

[KmH]

$17 a month = skipping 2.5 Red Bulls a week.

 

[gsgary]

Sigh now she's saying she'll come to my parents house, where I don't live and it says on my page that is strictly for mail use only, and she will go there and if I'm not there Friday to give her the pictures that she paid for (which she already has them, I don't know what the hell she is talking about) then she'll call the police, file against me and take me to court. And if I'm not there, she will go to my work, which, she won't be allowed in anyways (work for newspaper company) you can only go in if it's about your papers or work there so....She can take me to court.
I have documentation of everything we've talked about and saved it. Told her from the start $15 a picture, she's agreed to it, has even mentioned it through the attack 5 times...FIVE TIMES that she knows I charge $15 a picture...so why she is suing me in the first place? I have no idea....and it doesn't help that the lawyer is a family member of hers so it's a completely biased opinion on this now. Lost 3 followers because of this but live and learn.
Wish me luck guys >_<

Delete all the photos then she gets **** all

 

[Christie Photo]

Wow. I read through the first page and skimmed the rest. I took a look at the photos too.

This is one of the biggest non-issues I've ever heard. You were just trying to help this lady with some photos. You owe her nothing. Tell the deal is off; that you're no longer willing to work with her. You get no money and she gets no photographs.

I guarantee you the state is not interested in any sales tax here.

Don't be afraid of the words "law suit." I would tell her, "Yes. Perhaps that is the best way to handle it." That will end there.

I really doubt she'll come around your home or workplace. If she does, tell her she has to leave and call the police if she refuses.

The only real fallout will be her mouth, both locally and on the web. You have nothing at stake. No business rep to tarnish; no financial assets.

This will all quicly pass.

Good luck!

-Pete

 

[Kra_Ash]

Thank you all for the help.
She did NOT show up yesterday. At my house or work. So I'm guessing maybe her husband talked some sense into her, cause he loved the pictures and still has then has his profile pic, she got rid of hers. Hahaha.
One of the last things I told her was (not in these exact words) to forget it, I'm not giving you anymore pictures, I'm done with this conversation, tried to make a deal with you but you won't listen. And that's when she's kept saying she'll come over with the cops and stuff.
But since I don't know her, I don't know how she is or if she will come another day or if I will receive something in the mail for court. I showed my dad the conversation and he used to have his own business, he laughed and said she can't do anything, she has no ground to stand on.
Now I'm prepared for future clients with the contracts, receipts, release forms, etc. Going to be getting a new camera once I've saved up for it (really need that) and a 60mm macro lens as well

 

[MSnowy]

you have not paid taxes on your profit

Who says she has made a profit? Lots of assumptions in these posts. She may have revenues, but she also has expenses that she can deduct, including depreciation on her equipment which memoirshots alluded to in his post. She may be claimed on her parents' tax return as a college student (again, lots of assumptions in the responses to this thread). If she's not claimed by her parents, then if she claims herself her personal exemption would exceed her taxable income and again, she may not owe taxes.

Too many assumptions in these answers to give her really clear guidance on her issue.

I'm not even convinced she's "being sued" as she stated. Based on what I've read, she's in an argument with a client but there has been no lawsuit filed. What person would file a lawsuit where the damages are negligible? What a waste of time and energy.

One question. If you charge for your services and part of your service is to supply pictures. Are you taxed on the sales of the individual pictures or just the income from the service you provide? If just for the service. Would that make the cost of the pictures part of your supplies and there for a deduction.