no business license...

[stephanie lyn]

Heres a question...A lady I know has had her DSLR for a month now, and shes already advertising her services on craigslist. She charges $30 for 75 photos on a disc. She doesnt have a business license...can she get in trouble for this? Ive had people try to pay me for my time and services but i dont have a license and i thought that you had to have one in order to advertise etc...am i wrong?

[dakwegmo]

Business licences are usually pretty specific to where you live. In some places, you're required to have a one before you charge any money for an activity, in others, as long as it's under a certain dollar figure, it's considered a hobby and you don't need a license. Most states (in the US) have a website that explains what you need to do in order to legally open a business. I'd start there.

[Photologyst]

Regardless of business licensing, one needs a Federal tax ID number.

[BuddhaPi]

Depends on where the business is, and what that city's regualtions are. A social security number can be used as a federal tax id number in most cases, so it is possable to run a business without a license and still pay the proper taxes.

[candleman]

HOLY SHIT
$30 for 75 images on disc??

she hasn't thought about this much has she.

Camera Value = $1500
Shutter Rating = 100,000 clicks then the camera needs to be replaced
= 1.5c per click

To get 75 keepers, she would need to shoot roughly 400 images.
=$6 in depreciation to her camera alone.

What about:
the gas to get out there and back, (30 minutes each way + gas)
time answering e-mails and talking on the phone (1hour per client)
shoot time (1hour)
the editing time, (4 hours)
the cost of the CD, ($2)
postage, ($5)
packaging/branding materials ($5)

That still doesn't include a profit, or paying herself an hourly rate.
it also doesn't include any insurances, charges for replacing wearing equipment, development, marketing expenses, ...the list goes on.


[QUOTE=stephanie lyn;1169677]can she get in trouble for this?[QUOTE]
Yes, she will lose money, and ruin her family life.

In trouble with the IRS?
It might be illegal, but I'm sure they have bigger fish to fry.

[Photologyst]

”An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. You must check with your state to make sure you need a state number or charter.” Employer ID Numbers (EINs)

Originally Posted by candleman

Yes, she will lose money, and ruin her family life.

In trouble with the IRS?
It might be illegal, but I'm sure they have bigger fish to fry.

The IRS goes after the easiest cases, even those only earning pin money. The professional tax evaders and cheats are more clever at hiding their funds.

[Jim Bryant]

Originally Posted by Photologyst

”An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. You must check with your state to make sure you need a state number or charter.” Employer ID Numbers (EINs)



The IRS goes after the easiest cases, even those only earning pin money. The professional tax evaders and cheats are more clever at hiding their funds.

Oh how I Know

[dakwegmo]

Originally Posted by Photologyst

”An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. You must check with your state to make sure you need a state number or charter.” Employer ID Numbers (EINs)

Most photographers operating as sole proprietors don't need an EIN. Do You Need an EIN?

[Biomech]

She charges $30 for 75 photos on a disc

Wow. <--- that was my response, nothing else, I'm only typing these extra words because the forum won't let me post under 10 characters :P

[Photologyst]

Originally Posted by dakwegmo

Most photographers operating as sole proprietors don't need an EIN. Do You Need an EIN?

Well, most people who really run a business can answer “yes” to at least one of those questions and thus, need a EIN.

Every self-employed person should at least have a Keogh plan, in which case they need a EIN, otherwise, they are simply hobbyists.