When starting your photography business, it is important to set yourself up properly from the start. So, what are your options? You could be a sole proprietor, limited liability corporation (LLC), or a corporation. The type of business you want to run along with the investment you are putting forward, will help to determine what type of structure you choose for your own photography business. Each has their own pros and cons, so let’s go over the differences.
This is often the most popular choice as it incurs a minor monetary investment. Most times all you need is a DBA (“doing business as”) certificate with your state or county. Although the ease of starting this way is a great trade off, sole proprietors are not offered liability protection. What this means is that your personal assets are not protected and kept separate from your business assets.
Limited Liability Corporation (LLC):
This type of business has a higher monetary investment initially, but it can provide liability protection. However, this is no guarantee, so you still want to have liability insurance for your business. What this means is that your personal assets are protected as they are deemed to be separate from your business assets. An LLC is a great option if you have personal assets you want to protect.
Corporations are an option as well, but they have more cost associated on the back end than a sole proprietor or an LLC. There are also S Corps. As an S Corp, you can potentially avoid double taxation by electing to be treated as an S Corp.
That is a quick run down of the different business structures you can choose for your small business. I am personally set up as an LLC. If you have any questions please let me know. My goal is to help educate you so you can be successful in your own photography business, so please let me know if you have any questions or need help! You can reach me at email@example.com