To do photo for people, you must have a company?

[virustai]

Hi, recently, I read a forum, some people said something about to do photography (Like shooting portraits, or wedding), you must have to register a company, to receive money?
I been photography as hobby over 5 years, mostly I never do it like business way, but sometime friends asked me to shoot their wedding, portrait, and family pictures and they paid me some money (Not as much as Professional Studio charged).

I understand if you do it as business, have a lot of clients, I can understand that to have a company and pay some taxes. But if you do it as your second income source only have 3 weddings a year, and few portrait that you receive money, do you really need a company to do this job? :x

Thank you.

 

[Scuba]

No you don't have to have a company but there are some advantages to having a company. The main reason is to isolate yourself from any lawsuits. The income you can just put on your 1040 when you do your taxes. Would the gov ever know you made that income....prob not, but that is up to you.

 

[KmH]

No you don't have to have a company but there are some advantages to having a company. The main reason is to isolate yourself from any lawsuits.

It depends on the rules where you live, and if you get caught.

The requirements/penalties for for having an unregistered/unlicensed business vary from city to city. State governments have a vested interest in the collection of sales and use taxes which may require additional business licensing/registration at the state level.

You can be sued if you have a company or not, so I don't know what Scuba is trying to say here. Perhaps Scuba is thinking about how business types - sole proprietorship, limited liability company, corporation - do or don't protect a business owners personal assets. Obviously, if you don't have a legal business and get sued, your person assests are at risk.
Not having actionable legal documents, like a contract, or the appropriate liability insurance can also cause problems.

Several months ago a lady posted in the General Shop Talk forum section that she had gotten a letter from her city demanding she provide a financial accounting of her unregistered/unlicensed business so they could determine how much money she owed the city. In cases like that, if you can't provide any written records they usually just guess how much you owe.

The income you can just put on your 1040 when you do your taxes. Would the gov ever know you made that income....prob not, but that is up to you.

At least for the federal goverment.

In the world of cowboy (unregistered/illegal) small business and trying to 'fly under the radar' one's biggest worry should probably be your competitors notifying the local or state governments of your cowboy business as a way to cut down on the competition.