Starting my photo business ???s

[Devochka]

Hello all,

Just wanted to find out what licensing I need here in Texas in order to run my photography business legally. I am doing event and wedding photography, and portraiture.

I tried the "one stop" for small businesses, but that did not help me much. And it's so general, I had to look through a "book" of information just to find a couple of paragraphs that refer to small businesses.

Do you have any info on what I need to be able to run my business and be content knowing that I am doing everything legally?

Any help at all will be appreciated.

Thanks,

Olga

[Casper]

Check out these links,
http://www.sbdcnetwork.uh.edu/index.htm and http://business.texasonline.com/

This book may be helpful as well, Best Business Practices for Photographers by John Harrington.

Good Luck.

[Devochka]

Thanks, will check them out now.

[ShaneKislack]

You'll need a license from the state to collect sales tax. Your accountant can apply for you...you HAVE an accountant, right?

And some cities require a Cert of Occupancy if you are operating out of a commercial building.

[Devochka]

Nope, no accountant at this time. Just starting out on my own. Why do I need an accountant? Can't I do what I need my self? Does everyone who is a professional photographer have an accountant? I have not heard anyone mention it before...???

[LadyShutterBug]

You will be fine without an accountant as long as you know what you're doing. I hire an accountant for tax time but other than that I am on my own and fine.

You need to get a DBA if you aren't using your own name... and even if you are it doesn't hurt to get a "John Doe Photogrpahy" DBA from the county clerk, so that no one else can use your studio name.

Then go to the tax assessor/collector and get a tax ID number.

[ShaneKislack]

A good accountant will pay for himself several times over in tax savings.

I suppose if you are used to filing quarterly estimated tax payments and depreciation of equipment and such...maybe you can do it yourself???

[ShaneKislack]

You'll also need that DBA to open a bank account as a business.

[Daniel Bates]

I don't want to hijack your thread, Olga, so if you want, I'll move this to a new thread.



I've got a question along similar lines, but with a twist. Does anything change when the person setting up the business is a minor?

--Daniel

[ShaneKislack]

You can't set up a business as a minor because one of the basics of law is that any contract with a minor is voidable by that minor at any time. At least that's the way I understand it.

[Devochka]

I already got my DBA. That's why I needed to know what the next step is, pretty much. About the sales tax, if I don't collect it do I still need the license? I just simply included it into the whole price. I'm pretty sure the lab collects it for their work, since I'm going to work with a local pro lab.
So what I'm saying is, I'm selling my products but not specifying no sales tax. Just the product pricing with no additional charge.

Olga

[Devochka]

So another question about the tax. If you are not making any profit at the beginning, do you still have to file taxes every quarter? Can you do it at the end of the year? Maybe I should go and see a tax advisor...

[LadyShutterBug]

if you sell anything, to anyone... you have to collect sales tax on it. this includes service as a photographer, because the service ends in a product.

Sales Tax: you do not have to file quarterly. You can file yearly.
Income Tax: i file annually, not quarterly

[ShaneKislack]

Actually you have to file sales tax monthly...at least I do.

Income tax...depends on how much you are making and if it's the sole source of income.

You have to file a return even if you didn't sell a single picture/session. You may not owe any money but you have to file a return stating that.

[Mike G]

Originally Posted by ShaneKislack

You can't set up a business as a minor because one of the basics of law is that any contract with a minor is voidable by that minor at any time. At least that's the way I understand it.

Its not even that its voidable, the problem is that minors can't enter into a contract legally in the first place, you can't void what was never valid.