When do you know you are a business?

[amberenea]

I know this is probably a silly question, but when is it a good time to start calling yourself a business...do you need to have made a certain amount of money or have so much experience under your belt first? Does it matter?
For instance - If you have done a handful of portrait sessions and have now agreed to do a wedding, would one need to establish themselves as a business first? I have a good friend who works for a newspaper and has been doing several paid family portrait jobs on the side and has now been approached to do a wedding and is asking for advice as far as the business side of it.
I, having been a bride myself, who went the cheap route on a photographer and was left with less than desirable photos, understand how big of a deal wedding photography is...and can only give "if it was me" advice and was hoping you guys could point us in the right direction.
Thanks.
Oh and I know the right response should probably be to have her steer the Bride to be in the direction of a more experienced photographer, but if the person was insisting, should she be concerned about becoming a business or charging tax and such?

[amberenea]

And I know this is only like my second post...sorry, I have been stalking DPS forums everyday since said friend sent me a link to it.

[mandyatm]

I got a business license and started paying sales tax from my very first paid session. If she wants to continue getting paid for photography, she should get a business license. It's not hard and not expensive. I guess I started saying I have a business when a had a few clients a month finding me online and through referrals.

[BuddhaPi]

a good question to ask is if your friend would be willing to possibly be sued and risk losing personal assets, or would he be more willing to let the "business" be sued...this is of coasre if something horrible go wrong, like tripping over something at the reception and someone getting injured... I know it's far fetched, but something i would consider...Theres also probably some ramifications as far as contracts go, but i'm not a photog by trade...

[funcrunch]

Though I did paid shoots for several months before I got it, I didn't start officially calling myself a business until I registered my "Does Business As" with the city of San Francisco and got my business license a year ago.

[Biomech]

The way I see, you're a business when you start paying income tax.

[neil916]

If you'll do a shoot without any assurance of being compensated for your time and energies, because it's fun, because it's for a good cause, or because you want the experience, then it's a hobby.

If you wouldn't do it without getting compensated in some way, at some minimum level, then it's a business.

[Peapod Photo]

Good question. I think I'm a bit half and half at the moment. =P

[Jim Poor]

Originally Posted by mandyatm

I got a business license and started paying sales tax from my very first paid session. If she wants to continue getting paid for photography, she should get a business license. It's not hard and not expensive. I guess I started saying I have a business when a had a few clients a month finding me online and through referrals.

In most states, photography is not a licensed business. One must research the requirements of one's own location and meet those requirements, not what you did, or I did.

[private]

when you file taxes for your business you are a business