So if you're an up & comer in the photography business, here's a little help making you legit.
Now I preface this article warning you that I'm not the expert in this field...but after much investigation and plenty of calls with the "tax people", this is what was suggested to me. Oh...this is for Florida folks...and more specifically, Jacksonville area up & comers...if you're reading this from a different state...different states have different laws...
I don't have a particular order of doing this...I'm sure there can be one...but I did it as I became informed.
Now with that said, you should probably do this first - register your fictitious name. That is register that sweet and sappy photography business name...(I don't recommend this from a business stand point...I say use the Mary Kay and Louis Vuitton approach...brand yourself with your own name!). But if you must use a fictitious name, it cost around $50 dollars...and it's a must. Technically, you must at least advertise once a year in a newspaper or something similar...so trade with someone...I suggest. If you don't register your fictitious name, you could receive a misdemeanor! If you are using your first and last name, then you don't have to register your fictitious name because it's not fictitious...and because it's not fictitious, you can save some money! In any case, here's where you register your Fictitious Name.
Now that you have done that, you need to get an Occupational License...which just recently changed it's title to Business Tax Receipt. Now to do this one, you need to put gas in your car and go to 231 E. Forsyth St. Rm 130 Jacksonville, FL...it's in downtown.
When you go there, bring your Fictitious Name Registration, a picture ID, and your SS#. This one will cost between $40-$50...if I remember correctly. If you don't start your business until after April...or something like that, they pro-rate it...or cut the price in half. Double check on this money info...but I do know for sure that you need this Business Tax Receipt!
So you took care of that...now go fill out the application to collect taxes...so you can pay your taxes. In my case, my taxes are paid quarterly...they use some kind of method to determine your pay schedule...it might have to do with the type of business you're running...or how much you'll be making...shoot, I'm not sure...but they will let you know when you have to pay. This is one I'm 95% certain that it is FREE! Go here. Fill out this form...make sure to follow the directions. The tax form I have to use 4 times a year is the DR-15. Note: What I have been told by the "tax people"...and what I have read on these official websites, is that us photographers cannot charge taxes on our services. But you can charge taxes on products like discs, albums, prints, etc...and I highly suggest that you do charge those taxes or else it's coming out of your pocket...which I say by experience...urgghhh...
Lastly, get camera insurance. There's plenty of companies out there...but have fun finding them...really...I had the hardest time. But here's who I use - Safeco. It cost about $500 dollars a year...now that's based on the cost of my equipment. They break the payments down monthly...so it's $40 and some per month. It covers all of my stuff in just about any tragic event, minus my foolishness...so if you're camera tossing...and you happen to catch a bad case of butter fingers, that's on you! Hence, don't camera toss...I won't say it's worth it! This insurance also covers me in case I overheat my flash and burn down the venue where you're getting married (which I think might be impossible?). It covers me in case someone trips over my lightstand and breaks their hip...my insurance will cover a few $100,000 for their medical. It covers my stuff in an event of a fire in my house...or some ass breaks into my house and steals my stuff. Now with that said, it doesn't cover your stuff when that ass breaks into your car and steals your stuff...unless, you tell you car insurance that you are using your vehicle for business purposes...and then they will most likely increase your rates...in my case they didn't...Geico...hint, hint...
Now rewinding to all the tax stuff...I file my taxes as a Sole Proprietor...so every few months I have to pay my sales taxes...and then in April, I file my taxes just like everyone else.
Now, this isn't the only way to do this...there's LLC and S-Corp...and perhaps others. S-Corp is rather complicated...and I think you need board members...but don't quote me on that. LLC is cool...but it cost a couple hundred dollars or so. But the cool thing with LLC is that if you get sued, they can only go after your business assets. In my case, because I'm Sole Proprietor, they could go after everything I have...but I'm not overly concerned with someone suing me...knock on wood!
I hope this helps...because when I got started, I really had no one to guide me with this stuff...it took a course of a few months to put all the puzzle pieces together...but for you, I offer this blog post...
Note: I'm no expert on this tax/business stuff...the information above was given with good intent...and if I accidentally have given the wrong info or am missing something, it's bad on you for not double checking...but it's also bad on the persons who gave me this information...who get paid to give this information! So double check everything I said here...call...read...and ask other photographers.
Again, I hope this is helpful and points you in the right direction so that you can be legit in 2010! Happy New Years...and here's a picture to make a long post even longer!
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