I can't seem to find answers to my specific situation anywhere. I have messages into a business lawyer and CPA and waiting to hear back. I'm anxious to get some answers.
I am an amateur photographer. I hope to go into business SOME DAY! But didn't want to now. I have 3 small children and am a SAHM and don't have time to invest what is needed to be successful business. Right now I am learning the craft and portfolio building. Who knows maybe I'll decide this isn't for me. I use my first and last name followed by photography when I 'advertise' myself. I have a website to show some of my work (literally like 5 photos) and have ordered business cards just to make it easier to provide people with my contact info and website. I am not confident yet to charge and afraid if I go into business too early I will fail and ruin future name for myself.
I offer my services for free in exchange for model releases. I decided to start offering prints from a pro lab if the client wants them and charge very little over cost (like $1 per photo). Nobody has purchased yet since I just decided to offer this. I have given the high res files and printing rights in the past. I have done 4 sessions so far and from those sessions have interest from their friends/family. I have more sessions lined up for spring weather.
I only do onsite shoots. I have let family come to my home. I have about $1500 invested so far this year as my cost but no income. I don't really care to or want to claim my 'expenses' as I personally treat this as a learning hobby. But I know my opinion and the IRS's may differ. I want to make sure I'm legal in every way. Again, I just wasn't ready or intending on going into business.
You dont have to register as a business unless you want to. However I think if you earn over a certian amount without disclosing your empoyer that you will be looking at an audit and maybe paying backtaxes. I run e cigarette reviews and I have'nt registered as a business yet, but I plan to just to be on the safe side. I recommend you do the same...LLC!
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As the previous poster said , as a hobby you're OK for now.
At the first possible moment, I'd invest in getting a LLC for your business, no matter how small. You can talk to a CPA & attourney to get a better answer than the one I povide, however even for a small business, a LLC will take care of many liability issues that can arise even from friends.
Having a LLC for me was the best few hundred bucks I've EVER spent.
BizResearcher | Window Shopper |
2/24/2010 - 11:04 am
It sounds as if you currently have a hobby that might someday become a business. If so, the IRS allows you to operate as a hobby until you are ready to take the plunge into the business world. You may want to take a look at the following article on the IRS web site: http://www.irs.gov/irs/article/0,,id=186056,00.html
Vaporizer | Window Shopper | 3/8/2010 - 3:21 pm
brandons | Creator | 2/25/2010 - 12:05 pm
BizResearcher | Window Shopper | 2/24/2010 - 11:04 am
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