Business Type

[LaylaMurphy]

Hi All,

Just wanted to get some advice or opinions from other photographers. I am just starting out my business and am feeling pretty good about my portfolio. I would like to start charging but I want to go about it the right way and get all of my business licenses and what not first. I am going back and forth with whether to be an LLC or a sole proprietor. I am leaning toward the LLC because with how people are nowadays, I would like more protection. However, LLC's require more paperwork and I may not have the time to deal with that as this business will be a side job for a few years. Any thoughts or personal experiences that you can share would be most helpful.

Thank you!!

[OsmosisStudios]

LLC, all the way. That being said, check the tax regulations for your state/province: you may not need to report income from a business if it's under a certain net amount per year.

[danbaileyphoto]

I agree. Sole proprietor works well for a single person business, it's worked for me for years. However, I deal more with professional clients than with the public and maybe in this case, you'd want a little more protection. You never know what the public will do. Nothing says you cant start out as SP and then file for LLC if things start going well for you.

[DivotMaker]

Originally Posted by LaylaMurphy

...However, LLC's require more paperwork and I may not have the time to deal with that as this business will be a side job for a few years...

Other than the upfront paperwork, not sure what would require "more paperwork."

If you are looking for insulation, protection...LLC is the way to go.

But as danbaileyphoto stated, you can always start out as SP.

IMHO, it really depends on your business model.

just my 2c's

[NicoleScraps]

My husband runs a different type of business, but these decisions were still applicable to him as well. He started as a SP, then went to LLC after his client list got huge.
Really the only thing that is different, other than initial paper work, is that we are required to have a "business" checking account seperate from our personal account. There are a few more steps involved when filing taxes, nothing significant or difficult. But LLC provides much more protection to your personal property.

[LaylaMurphy]

Thanks everyone for your advice. LLC is what I was leaning toward so it seems I might be on the right page.