steps for getting legal

[abril1127]

Ok I know they are on here but I can't seem to find any good resources for getting legal. Maybe I'm searching the wrong key words?
Anyway here's a red crayon will someone draw it out for me

[CaptainTom]

http://www.texasphotoforum.com/forum...ad.php?t=89283

[abril1127]

ok so what could someone expect for insurances? I saw if you pay the $200 bucks to join PPA you can get Malpractice Coverage (Indemnification Trust) for what looked like $50 a year. Is that correct?
What about a business liability insurance what would one expect to pay for it?
Taxes....You pay a tax on what you make and you pay a sales tax that you collect from your client? Sales tax is collected on All services since they end up being a product?
So Would Turbo tax be a good accountant?

[srwatters]

I strongly suggest you contact a CPA that specializes in small businesses to get financial and tax advice. You may get 25 different answers here that are all right for each individual and none that are right for you.

[abril1127]

hmm good point!

[Jeff Lane]

So Would Turbo tax be a good accountant?

Um, no. And Quicken Legal would not be a good lawyer.

Getting started seems complicated, perhaps unreasonably so. But if you establish a relationship with a good CPA and a good lawyer who are willing to help you get started, they'll more than pay for themselves over the long haul, by helping you indentify issues that may pertain to your unique situation and locale, and by helping you start with bookkeeping systems that work for your level of financial acumen. (Oh, and by the way, they also should be able to recommend a good business insurance agent, too.)

Your Grannie was right about all that "ounce of prevention" stuff.

Jeff

[abril1127]

Basically right now I am starting my in home studio, I'm guessing I'll do 2-5 weddings this year with some portrait work in between...nothing big. I still have 4 years before my kids are in school and I hope that my business will start picking up about that time....that's why I hesitate to hire someone right now. But I get the whole ounce of prevention thing.

[srwatters]

Originally Posted by abril1127

LOL I know you kinda gawk at that statement but I am a do it myself kind of girl. I learned how to build my own website & blog it took me months to do it but I accomplished it...and I'm dang glad I did! I painted a couple backdrops myself, I've installed wood floors and fixed my own car, and I do my own Taxes every year. I would just rather learn to do it myself...maybe I'll go and take some classes for this.
Basically right now I am starting my in home studio, I'm guessing I'll do 2-5 weddings this year with some portrait work in between...nothing big. I still have 4 years before my kids are in school and I hope that my business will start picking up about that time.

It's all about the amount of risk you're willing to take and understanding what you could possibly lose if you are wrong. There's nothing wrong with being a DIY business starter, but I would be smart and educate yourself from someone that has the training to do so. Would you rather take advice on building a house from the day laborers in the Home Depot parking lot? They build houses, but I wouldn't want them to design my foundation. If something is wrong there I'm risking my entire house falling down. If you get wrong business or tax advice on starting your business, you risk fines and penalties or in extreme cases, possible lawsuits that might take all of your personal possessions. Of course I'm going overboard here, but it is possible.

Good luck!

[Shelby Lane]

Originally Posted by abril1127

Basically right now I am starting my in home studio, I'm guessing I'll do 2-5 weddings this year with some portrait work in between...nothing big. I still have 4 years before my kids are in school and I hope that my business will start picking up about that time....that's why I hesitate to hire someone right now. But I get the whole ounce of prevention thing.

Yes, but if you're planning on building your business over those four years, it's worth it to get a solid start, IMO.

[abril1127]

Ok you've convinced me.
But what about Liability insurance...about how much annually does that run?

[rglover]

For what you describe, I suggest that you find a reasonably priced CPA to advise you about setting up your business. You can probably spend an hour or so of the CPA's time for a modest fee and get the information you need. For your accounting needs you can probably get it done with Quicken Quickbooks or something similar. Ask the CPA for suggestions about accounting software.

Unless you are hiring employees you probably don't need to form a corporation or limited liability company to conduct your business. These entities wouldn't provide much protection for you as a sole proprietor since any lawsuit would likely involve your personal acts for which you would be liable whether or not you did them through your company. The good news on that front, however, is that your personal effects are protected by Texas homestead laws (but not your bank account!). You could just conduct your business as a sole proprietor and file assumed name certificates if you do business in any name other than your own.

The CPA can also make suggestions about insurance and it would be most helpful to find one who has been retained by other photographers.

All that said, this is just general advice that may not take into account your specific situtation and you should consider the professional advice of a good CPA to get you started in the right direction.

[abril1127]

I just got an appointment with the "Small Business Development Center" They said their services are completely free and they have a wealth of knowledge for photographers. IF anything this should lessen the amount of time at a CPA's office

[Jeff Lane]

I just got an appointment with the "Small Business Development Center" They said their services are completely free and they have a wealth of knowledge for photographers. IF anything this should lessen the amount of time at a CPA's office

Many of these SBDC's are great resources, and everyone thinking about starting a business should seek one out (although they are not always available in smaller towns or rural areas). IT WILL SAVE YOU MONEY IN THE LONG RUN.

The "foundation" comments are spot on. One reason I'm so passionate about this is that I'm a small business lawyer myself. Right now, I'm helping a terrific small business run by two people with a great service idea who do a great job of execution on what they know best. Unfortunately, they didn't know enough about setting up their business on a "good foundation" -- they just dived in headfirst. After getting some glowing press by doing what they know well, they found themselves in the middle of some HORRIBLE legal problems because they didn't know about the right kind of business structure for what they were doing, or how to evaluate a commercial lease, or how to draft good, clear and enforceable contracts, or how to deal with taxing authorities or regulators, or ....

My favorite Latin phrase from law school: Mulcti mulcta, nemo omnia novit. (Very loosely translated by my beloved grandfather as "Lots of folks know lots of stuff, but there ain't nobody knows everything.")

Without going into too many details (or disclosing anything that would help identify these folks), if they'd have invested about $500 worth of time with a CPA and a decent lawyer (one sensitive to the particular needs of entrepeneurs), they'd have saved themselves nearly $50,000 of heartache and lost opportunity costs (so far, and counting). That $500 would have been a pretty good return on investment.

Good luck, and share with us know what you learn from the Lubbock SMDC.

[abril1127]

Welllll that was somewhat a waste of time!
I just got back from the small business development center and have absolutely no answers to any of my questions. Apparently it's a 12 week/meeting process and I can't expect to get all my questions answered in one session (or any questions answered for that matter) Oh but I did get a tour of the building! WTF??? Oh and a 15 minute analogy about me testing the waters.
OK but I do have some faith in these people and just because My counselor was a little long winded doesn't mean next session won't be beneficial. He did tell me (about 15 times) about their starting your own business workshops which are supposed to be the difference between succeeding and learning the hard way.
He did mention that I may not want to run out and get a tax ID just yet.
Anyway I'll post more when I learn more!

[Cajungaltx]

Originally Posted by Jeff Lane

My favorite Latin phrase from law school: Mulcti mulcta, nemo omnia novit. (Very loosely translated by my beloved grandfather as "Lots of folks know lots of stuff, but there ain't nobody knows everything.")

Jeff, you just gave me my new siggy... ;-) I love it! Thanks!