Do you have a knack for capturing emotions, images and people at the right time? Maybe you can capture landscapes with such accuracy that they appear breathtaking. Whatever the situation is, it sounds like you are tailor made for the photography business. You could really profit from starting your own business and getting some exposure in the world. That being said, starting a business legally is never an easy task and below you will learn what you need to know in order to accomplish this task.
Picking A Name
Every photography business needs a name. It doesn’t matter if it is just as simple as your “First and Last Name Photography.” If you do go with your own free name and someone else already has this name, you don’t have to worry legally. You always have free and clear rights to your birth name. There have been cases that have gone to court over this very issue and each time the defendants won the same. However, things might get a little more complicated if you choose a name that isn’t your own. You will need to take a few extra steps. You can check out the USPTO.gov website and search for the name to see if anyone has registered that name as a business.
How Do You Want To Register Your Business
It is also important to protect your assets. And, there is no better way to do that than by registering your business. Separating your personal finances from your business finances will ensure that no one can ever come after your personal assets. Registering your business as an LLC, like Avenue One Photography, is usually the most popular way to do this. Registering your business as a sole proprietor simply means that you are someone that does business and is not necessarily a separate legal entity. If you aren’t registered as an LLC, you pretty much already are a sole proprietor. This offers you no protection whatsoever.
Acquire An EIN
It is true that not every business will need an EIN number, but it can come in handy when dealing with specific sets of issues. For instance, when you are dealing with the IRS, obtaining insurance, processing credit card payments and setting up a business bank account, it is likely that they will ask for an EIN number. Obtaining one of these numbers is extremely easy and it only takes about five minutes. In fact, it is something that can be done online.
Register To Pay State Sales Tax
When setting up a business you would be surprised to learn how many individuals overlook this very important step. Skipping this step comes with some harsh penalties that you will want to avoid at all costs. Every photographer out there will be required to register to pay state sales taxes, even if they are registered as a sole proprietor. It is true that you do not have to pay sales tax when you are providing a service, but there are exceptions to this rule. And, photographers are one of those exceptions. The sales tax commissions classify photographers as if they are selling products rather than providing a service.