Starting a business is one of the most challenging, but rewarding, things you can do. Out of these, I'd advise you spend the most time trying to find a really, really good accountant. Many businesses owners will tell you that a good one is worth their weight in gold. In addition to the usual accounts stuff they can give you invaluable advices.

As others mentioned, your attorney and accountant can help you make the right decision about your entity type. You might consider registering as an LLC. That offers the protection of your personal assets that you need and involves much less paperwork than an S-corp. I own a home-based event planning business. I do not write off a portion of my home on my taxes for a couple of reasons. First, you cannot use the space or your computer or other equipment for any purpose other than business. Second, as someone else mentioned, when you sell the house you will have to pay taxes on the space you deducted for every year you claimed it. The annual write-off amount isn't that great, but having to repay those taxes in a lump sum might be a problem. You will need liability insurance. In the industry, $1 to $2 million is standard. You may be able to obtain it through the company that provides your homeowner's insurance. I was not able to do that because all the events I manage occur at a location other than my home. You may have the same issue if you photograph weddings or take seniors and families to outdoor locations. I contacted an independent insurance company that works with multiple companies and they were able to find the best deal for me. Be sure your contract is comprehensive and you have every client, even friends, sign it. A big issue is who owns the copyright to the photos and how they might be used. A few years ago, a photographer friend of mine allowed some of his photos to be used to promote a local wedding show. The mother of one of the bridesmaids complained that her daughter was visible in one of the photos, but her daughter had not given permission for use of her photo. Legally, the daughter's permission was not required because the clients (bride and groom) had given written permission to use their wedding photos. You never know when someone will complain about something, so be sure you have considered all the possibilities.

Hi there, Definitely look into sales tax laws in the state you're in, they differ and could effect your business... Make sure you cover all your bases in written release forms. You don't want anyone suing you over using photos on your website or promotional materials, etc. And make sure you market yourself well. You don't have to spend a whole lot of money to get your brand out there...SEO strategies will make sure you come up for searches that pertain to your business, like 'photography Madison' or 'photography Wisconsin;' for each client you do get, have them write a review for you on Google reviews, Yelp.com or your Facebook page, or ask for a referral; and make a fantastic website showcasing your photography and put ads on Craigslist advertising your work for certain events, like weddings or baptisms. For more tips, feel free to visit these sites: www. businesscoaching.com www. actioncoachuk.com ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Five key attributes that surely will help you.   1. Professional Branding. When you get started, you usually begin on a shoestring budget. So you start with as little as possible. What we realized early on is it helped to define who we were, and put that into everything we did. We used 'Denver' in our original tagline and remained a local business; by changing it to 'Worldwide' we achieved far greater success. Look at what the true professionals use on their websites and in their marketing. Use that to come up with your own ideas. And talk to a marketer or a branding firm. You'll be surprised at how much time and energy they can save you - and how they can help put you years ahead of schedule. 2. Mentorship. A successful businessperson never goes it alone. She realizes the key to success is to join others that have achieved success, and follow in their footsteps. When trying to create a successful business, reinventing the wheel takes way too long. And with so many people out in the business world willing to share how they got where they are today, why reinvent the wheel! How do you find a mentor? Look for industry leaders that have made it to the top of your chosen path. Want to photograph weddings? Who do you admire? Love commercial work? Find the best, and follow their patterns. Also find successful business people that can make the most of your time. Find marketing consultants, lawyers, accountants and business coaches that can cut your learning curve and the time you spend on menial tasks down to nothing. 3. Education. A successful businessperson always looks for educational opportunities. Have you ever heard the phrase: When you're green, you're growing. When you're ripe you rot. This phrase speaks to all entrepreneurs very seriously. Over 60,000 books are published every year. Millions of articles are written every year in the thousands of magazines, newspapers and publications published. Information is constantly being updated, changed and reported. Hundreds of training classes are going on all around you every week. There is always an opportunity to take what you know today, and expand on it to create a stronger understanding for tomorrow. As a photographer, don't just learn more about photography. Learn about marketing. Learn about business. Learn about other ways of making money with your photography. Don't become complacent with where you are today; always strive for something new. 4. Focus. As a startup photographer, you typically try a variety of work. One day you'll be photographing a baby; the next a commercial portrait. Every day brings in something new. And it also brings in the struggle of how to charge for it, how to set it up, and where to photograph. While it may be easy to bring a baby into your home, what will you do with a horse? Focus allows you to think through every last detail, and put together dynamic presentations for your prospects and clients. You won't struggle with the 'how much' question because you'll have all of it locked down. 5. Patience. There is no such thing as an overnight success. Your road to becoming an overnight success may take you a year. Or three. Or ten. No matter how fast it comes, it comes when you are ready for it. You learn as things happen, and grow by taking action. Every day is a new opportunity.

You should know that you can still deduct for business expenses even if you are not incorporated. Schedule a 1 hour session with your CPA and have him set up some sort of structure or action plan for you. Now with regards to protection it boils down to a few things: how much risk or liability is involved? are there vicious dogs or violent roommates or family members living in your home that could pose a threat to your clients? are your floors slippery? are there usually toys strewn about the living room that could injure one of your clients? do you have written releases from your clients to use their photos for showing off your marketing samples? are there other possible issues you can see that may create a lawsuit? you know that wedding photograpy can be a real sensitive issue for a lot of people. and probably most important: do you have a lot of personal assets that could be exposed? a Lear jet perhaps? Factor all these things in and figure out what your risk tolerance is and then you will know whether you should incorporate or not. LOS ANGELES BUSINESS PATENT ATTORNEY LAWYER LOS ANGELES TRADEMARK BUSINESS PATENT LAWYER ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Definitely check with you accountant and an attorney. I'm a photographer in Missouri, and operate as an S-Corp which saves the self-employment tax. But there is more paperwork and tax filing that has to be done. So it will also depend on how much income you're taking in to determine whether or not the extra expense of the bookkeeping is worth it. Your local zoning may also determe how much business you can do out of your home. ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Before choosing to 'expense' part of your home and upkeep, please speak with an accountant about the taxable situation this may create when/if you sell your home. I'm not an accountant, but do know enough to recommend that you consider this with a professional. Also, check with your tax commission (or similar agency in your state) to see if sales tax applies to your industry. In my state, Oklahoma, sales tax is charged on photography and ALL related services....not just on the actual photos sold. Good Luck.

Where protection of personal assets is your strongest consideration, a corporation is your best bet. Check with your accountant to determine if an 'S' corp or a 'C' corp would work better for your tax situation. Under either option, you will be able to deduct a portion of your home's upkeep and utilities, in proportion to the amount of space that you use exclusively for your business. These rules can get complex, so do get an accountant involved soon. The corporation acts like a person. It is not you. It is its own person. A corporation can rent, buy, sell, pay tax, incur debt, and do whole lots of things that a real person does. But because it is not you, you do not incur liability. There is one BIG caveat to this: loans. If you get a loan of any kind, even a credit card, you will be required to sign for it personally as well. That is unavoidable. There is no way to get around that in any type of business structure. MaryAnnwww.BusinessPlanMaster.comBusiness Plans for Financing Your Business