How much will it cost me?

[acc]

I am interested in starting a p/t business next year. After reading information I have questions. First, I know I need to get a state tax id and a dba. My question on that is...if I make zero dollars, do I still get penalized and have to pay taxes regardless? I am estimating about bringing in $200 a month if any. Like I said this is very part-time for me. Which brings me to my next question. The business personal property tax. Is that required? So if I am understanding it correctly, I list my equipement and value it and then I have to pay taxes on it at the end of the year regardless how much money my business brings in?

So I am starting to wonder if it's even worth going into business as p/t...either that or I need to charge high prices so I can profit and still pay for everything else.

Is there anything else I need to cover before I decide to go for it? This is a whole new ball game for me and I need to decide if it's really worth it. Any advice or help would be greatly appreciated. Thanks.

[toverman]

Insurance!

[Shelby Lane]

Originally Posted by acc

So I am starting to wonder if it's even worth going into business as p/t...either that or I need to charge high prices so I can profit and still pay for everything else.

There are threads and threads of information here on going into business and pricing. As Todd said, you will also need insurance. It's not necessarily an expense but I'd also recommend that you start off with a business plan. Also don't forget that any equipment or software you have is an expense, even if you already own it. You'll end up needing to upgrade or replace or supplement more often than you'd expect, especially where computers, software, and memory (computer and camera) are concerned. Your prices for part time work probably won't be that different than they would be for full time -- if they are, you're likely to have a hard time ever making it full time.

[ldelacruz]

No. If you have no sales you will not be taxed. You have to file $0 or you will be taxed on what they think. Property tax is different and based on your business assets not earnings and is usually done yearly.

[MicWayWal]

Originally Posted by acc

The business personal property tax. Is that required? So if I am understanding it correctly, I list my equipment and value it and then I have to pay taxes on it at the end of the year regardless how much money my business brings in?

This is practical information not legal information:
You won't be asked to pay or have to pay business property tax until you open a business in a business location, as long as you are using your own personal camera and equipment.

[pbyd]

Business Personal Property taxes are required by state law even if you work out of your house. Do contact the state of Texas and they will let you know what is needed. There are people out there that wished they would have paid taxes when they were due. The PPA sent out an email last month telling of state and local taxing authorities going after photographers nation wide.

Originally Posted by MicWayWal

This is practical information not legal information:
You won't be asked to pay or have to pay business property tax until you open a business in a business location, as long as you are using your own personal camera and equipment.

[dartlrt]

Instead of going into business part time for yourself, have you thought about working part time for another photographer? That way you could learn what the business side of photographery is all about.

[nastytrucker]

Yeah that business personal property tax is scary, I got hit with it on a couple of my trucks and it aint cheap. I know in my county if your property is below a certain value ( I think about $10,000) its cheap.

[YvetteH]

When I started I was told that all I needed to do was file a DBA. If you are a sole propriotor you just use your social security number for tax. You do not need to apply for a tax id. I was also told that the business property tax was not required. I hope I was given all the right information. They also advised me to wait until I was in full swing before getting insurance.

[Shelby Lane]

Originally Posted by YvetteH

When I started I was told that all I needed to do was file a DBA. If you are a sole propriotor you just use your social security number for tax. You do not need to apply for a tax id. I was also told that the business property tax was not required. I hope I was given all the right information. They also advised me to wait until I was in full swing before getting insurance.

You don't necessarily need a FEDERAL tax ID but you MUST have a Texas State Sales Tax ID. If you are in business, you are responsible for collecting that tax.

[toverman]

You need a sales tax ID number, collect the tax and then pay it when they tell you. I pay it quarterly.

Opinions vary whether you need a DBA, which will protect you in your county if someone decides to do business under the same name afterward. For business checking accounts, some banks require one.

[pbyd]

Originally Posted by YvetteH

When I started I was told that all I needed to do was file a DBA. If you are a sole propriotor you just use your social security number for tax. You do not need to apply for a tax id. I was also told that the business property tax was not required. I hope I was given all the right information. They also advised me to wait until I was in full swing before getting insurance.

You are required by law in the State of Texas to collect sales tax on any taxable goods or service in Texas and this includes Photographic services and prints or cd. If you have very little income you will pay yearly or by the quarter, all of my friends that like me are in the business of photography have to pay every month. I could not afford to buy equipment if I made so little income that I paid by the quarter or yearly. You are also required by law to pay business personal property taxes along with your other federal and state taxes. This does not mean that everyone that takes photographs and charges for the service and prints does everything legal and above board. Most will wait until the state catches them and then complain.
Why would you think people want to trade with businesses that are not legal?
Get Legal at first and be done with it.

Wayne