In this post, I will share a guide on how to register your photography business so you can be up and running legally in no time!
How to Register your photography business is critical in establishing yourself as a professional and protecting your personal assets. Moreover, by choosing the right structure for registering your photography business, you’ll be well on your way to a successful business.
Starting a business might feel overwhelming and a bit scary, but it’s worth the effort at the end of the day for your photography career. Once you overcome these initial hurdles, you’ll feel a sense of accomplishment and be well on your way to a successful business.
When you are ready to start your photography business, it is an exciting journey, but one of the most important steps is ensuring you’re legally registered.
I know you may think this sounds complicated, but I assure you it’s easier than you think. The straightforward registration process ensures your business is set up properly for taxes and financial management.
In this guide, I’ll walk you through registering your photography business and obtaining an EIN from the IRS.
Full Disclaimer: I am not a Lawyer or a Tax Specialist. I am simply sharing what I have done to get my photography business registered with my Borough and State.
Determine Your Business Structure
There are a few things to consider before registering your business. Choose your business structure. Common options for photographers include:
- Sole Proprietorship: It is ideal for solo photographers and tends to be a simple setup, and is the easiest and cheapest way to start. However, you’re personally liable for business debts.
- Limited Liability Company (LLC): Separating personal assets from business liabilities offers more protection. It is usually a popular choice.
- Corporation: It is for larger businesses with more complex tax needs.
Register for a Business License in Your State
A business license is required in some states, even if you are a freelance photographer. The first step is to visit your state or local government’s website to see the business license requirements.
Some cities require a general business license, while others may require industry-specific permits such as a photography permit for shooting in public spaces or a sales tax permit for selling prints. It’s important to research and understand what is required in your area.
Ensure to renew the license annually or as needed, and keep a copy for your records.
Tip: Register it as a home-based business if you plan on working out of your home office.
Register Your Business Name
Once you’ve decided on your structure, it’s time to pick and register your business name. If you’re running a sole proprietorship under your name, you may not need to register the name. However, you must file a “Doing Business As” (DBA) with your state or local government when using a business name.
Obtain an EIN (Employer Identification Number)
An EIN, or Employer Identification Number, is sort of like a Social Security number for your business. It is necessary if you plan on hiring employees, even if you don’t. You will want an Employer Identification Number (EIN) to separate your personal and business finances. Here’s how to get one:
- Head over to the IRS website.
- Search for the EIN application and select “Apply for an EIN online.”
- Complete the form, which will ask for details about your business structure and name.
- Click Submit the application. You will receive your EIN instantly; the best part is that it’s FREE!
Your EIN can be used for tax filings and official business dealings, such as opening a business bank account.
Register for Taxes
Now that you have your EIN, the next step is to register for state and local taxes. Usually, you will need to register for:
Sales tax: Add and file sales tax for physical products such as prints, photo books, or other specialty-designed items.
Income tax: You Will need to file self-employment taxes, even if you’re a sole proprietor. You should check with your state’s tax authority to determine what your district requires.
Get Business Licenses and Permits
Some states and counties have specific licensing requirements for photographers, so research what is necessary in your region. Furthermore, you may need a business license to operate legally based on your location.
You may need to renew your license annually or as needed. This usually involves filling out a renewal form and paying a renewal fee. Make sure you save these documents for your records.
How to Keep Your Photography Business Compliant
Compliance with local, state, and federal regulations is crucial for any business.
- File Annual Reports (if applicable for LLCs or corporations).
- Pay Quarterly Estimated Taxes to avoid penalties during tax season.
- Renew licenses and permits on time.
- Track expenses and income throughout the year for easier tax filing.
Open a Business Bank Account
Once your business is registered, you will want to open a separate business bank account.
You want to keep your personal and business finances separate and organized, and is a must for managing taxes effectively.
Suppose you accept online payments such as PayPal, Venmo, Zelle, etc. Be sure to set it up as a business and link your business bank account. Be mindful of added fees when using these services.
Now You are Registered, Now What?
After legally registering your photography business, it’s time to focus on building your brand and developing Your online presence.
- Create your professional website: You can start your website platform inexpensively on professional platforms like WordPress, Weebly, or Squarespace to showcase your portfolio.
- Set up social media accounts: Facebook, Instagram, Pinterest, and LinkedIn are the best platforms for photographers to connect with potential clients.
- List your business on Google My Business: This makes it easier for local clients to find you and see reviews of your work.
Once you set up all your platforms, don’t forget to share your Website and Social Media with our family and friends! Their support and encouragement can be a great boost for your new business.
Commonly Asked Questions
It’s natural to have questions when setting up your photography business. Furthermore, registering your business may seem overwhelming, but it is necessary to ensure everything runs smoothly and legally.
Do I need to register my photography business if I’m working alone?
Absolutely! You must register your photography business even if you’re a solo photographer.
You may not need to register with the state if you operate your business under your name. However, if you use a business name or brand, you must file a DBA known as “Doing Business As” with your state and/or local government.
Additionally, registering your business ensures you’re compliant with tax requirements, and if you ever decide to grow or hire, you’ll be fully prepared.
What taxes do I need to pay as a photographer?
As a photographer who is registered, you’re responsible for:
• Income tax: Whether a sole proprietor or LLC, you must report your earnings and pay self-employment taxes.
• Sales tax: If you sell physical products like prints, albums, or photo sessions that result in tangible items, many states require you to collect and pay sales tax.
Check with your local and state tax requirements, as they can vary.
Do I need business insurance for my photography business?
Absolutely! I can stress how important it is to obtain good business insurance, especially as your business grows. Here are a few types of insurance to consider:
General liability insurance: Covers you in case of accidents or damage during a shoot.
Equipment insurance: Protects your valuable photography gear from theft or damage.
Professional liability insurance: Also known as errors and omissions insurance, protects you if a client is dissatisfied with your work or service and decides to sue.
Fact about Debra: I was doing a family photo shoot, and there were little kids in the mix. One of the kids picked up my backup camera and dropped it. I didn’t realize until I got home that my camera no longer worked. Thank goodness I had insurance on my camera gear. I was able to replace the backup in no time.
Do I need a business license to operate as a photographer?
Some states and/or cities require a general business license, even if you run your photography business in your home.
Do I Need an Accountant or Bookkeeper?
You need to hire an accountant or bookkeeper to help you manage your business taxes, ensure compliance, and provide financial guidance.
Alternatively, if you want to track your expenses, you can use accounting software such as QuickBooks to help you track your expenses, invoices, and tax filings.
What are the best resources to learn about photography business regulations?
Staying informed is key to running a compliant business. Here are a few resources:
- Local Small Business Development Centers (SBDC): They may help and offer free consultations on setting up your small business.
- IRS Small Business Tax Center: Provides resources on taxes, EINs, and tax filings for small businesses.
- Photography business books or online courses: Many photographers share their experiences through online courses and books that guide new photographers through their craft’s legal and business sides.
Final thoughts…
Registering your photography business might seem overwhelming, but once you have the right steps in place, it will be a manageable process. Furthermore, it ensures you operate legally and positions you for long-term success.
Once you have registered your business, you can focus on building your brand and protecting your business legally and financially.
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