Starting a Photography Business in California

jnjphotography · **Starting a Photography Business in California -** 07-09-2007, 08:49 PM

Hi everyone,

My and soon to be wife would like to know if anyone can provide any helpful links in regards to setting up a photography business in california. We have browsed the internet constantly but did not find a clear answer. As of my knowledge, the only things needed to start the business are a fictitious business license to register our business name such as JNJ Photography and a business account at a local bank as a "Doing Business As." Can anyone clarify this? We would like to hold the business as a partnership since there are two of us or is it easier to put it as a sole proprietorship. Please let me know any comments, opinions, etc are greatly appreciated.

littlegett · 07-10-2007, 11:27 AM

Everything you need to know is located http://sba.gov/ - it is a one stop shop for small business.

JeromeL · 07-10-2007, 02:14 PM

great resource, i had the same question

jnjphotography · 07-11-2007, 09:51 PM

Thank you so much. LOL, I never thought of refering to that site since I thought it was only aimed at business financing.

chrisfotos · 07-13-2007, 10:45 AM

excellent resource. thanks for the link.

pixartist · 07-13-2007, 09:13 PM

Go to your county offices. They have all the information for your registration of your business. Then, go to your city and apply for your business license. Most cities will give you the information of what you can, of can't do in your city, and will give you some heads up if you ever open a space that is not zoned for your business.

Regarding the partnership. It is still considered a sole proprietorship, just owned by two people. My recommendation is that you consider an S corp when your business reaches a certain amount of gross sales. Consult two people: a CPA and a lawyer. I know she's your fiance, but even even if your married, things can get ugly if something should happen between the two of you.

jnjphotography · 07-19-2007, 09:12 PM

Thanks for the advice and comments everyone =)

RochinPhotography · 09-29-2007, 10:03 AM

I just recently picked up my business Lic. n such. Pretty easy process that cost about 200 bucks in my city. Good luck

pixartist · 09-29-2007, 10:46 AM

What you need to do is go to your county office and file for your fictitious name. You need to renew that every 5 years. This will keep another person from filing for your business name in your county.

jnjphotography · 09-30-2007, 11:15 AM

Hmm so this is what I got so far. In order to start a photography business in Ca. I would need:

1) Fictitious business name statement to establish ownership of that particular business name. I would need to go to to County to register that process.
2) Obtain a proof of publication from any local newspaper. to make sure no one can dispute me from using my business name and annoucing it to the public that I will be using this name.
3) Business license to show I am a the owner of that business. I would need to go to the city of where my place of business resides. (City Tax)
4) Apply for a Seller's Permit from the State Board of Equalization which can be found in district offices (Federal level)
5) Optional, Employer Identification Number E.I.N. if I wanted to keep the reporting of my business sepearate from my SSN for tax purposes.

I am planning to settle everything before the end of the year. Is there anything I am missing?

pixartist · 09-30-2007, 03:07 PM

Quote:

I am planning to settle everything before the end of the year. Is there anything I am missing?

Charge properly, make money, and enjoy a really good living off of your new business!

aldeghij · 10-16-2007, 09:36 AM

Read this publication http://www.boe.ca.gov/pdf/pub68.pdffrom The Board of Equalization. Very important to know what is taxable in this State (unfortunately, pretty much everything photographers do is subject to Sales Tax).

rippo · 11-07-2007, 02:20 PM

ok, there's what you SHOULD do, and what you HAVE to do at the start.

which is, well, nothing.

the fictitious name/DBA thing is required for you to open a bank account under a business name. if you're using your own name, or 'Bob Smith Photography' for example, you don't need to do this. just have people make checks out to you. if you've got a different business name, then you'll need it to open an account.

newspapers do the ad for you, and will also handle the county paperwork (separate fees). they often compete with each other for your business, so shop around. it doesn't have to be a major newspaper, it can be a local weekly or something.

the business license is a tax, pure and simple. once you file a DBA, the city will come looking for you and insist on you buying a license. probably best to get one before they send you a notice, if you've gotten a DBA. they read the papers too.

if you're working out of your home, you need to check the home-office requirements. some cities don't allow it at all, others have restrictions, different fees required, etc.

if you're a sole proprietorship or husband-and-wife s.p., then you don't need an EIN. use your SS#, save the hassle. the feds don't care.

resellers permit: this is probably the most important one. you don't want to pay tax on prints from your lab and framing, etc, if you're turning around and reselling it. you do want to familiarize yourself with the rules though; you don't get a free ticket from sales tax. you only get a break on things you're actually reselling. so no tax-free cameras and lighting, for example, unless you happen to be opening a camera store.

also, you might want to check the rules on sales tax and photographic services. i'm not sure where this stands, but i've been at this for a short time only and haven't bothered (but, obviously, i've started more than one business in my lifetime!).

hope that's helpful. for educational and entertainment purposes only. no legal advice given or implied. some assembly required.

Abel · 11-26-2007, 01:32 PM

great information guys... thanks for sharing.

JWright · 06:13 PM

And whatever you do, DO NOT try to take the "home office" deduction on your income taxes. It's a guaranteed audit flag because the rules require the office be used for ONLY business and nothing else. If you process your personal photos on the computer in there, then the deduction is disallowed...

FerrisPhoto · 12-06-2007, 07:15 PM

Don't forget a minimum 1 million dollar umbrella insurance policy. Most venus require it.

JeromeL · 12-23-2007, 01:37 AM

insurance is quite important. good comment

Abel · 12-23-2007, 08:58 AM

the PPA also has certain legal services you can use as a member in case you and your business is sued...

RochinPhotography · 12-26-2007, 10:01 AM

Also know that this (xmas) is the worst time of the year. HAHAHA Just got my papers from uncle sam asking for my taxes. HAHAHA

Silverstangs · 12-26-2007, 10:52 AM

I just got my EIN number... so I will be getting the rest in a few weeks. The EIN number was WAY to easy to get. All I did is call up the IRS, answered about a dozen questions and voila, they gave my EIN over the phone.

I check with the city,(Sacramento) and I have to get a sellers license from them $165, and I need one for the county....ugg.

RochinPhotography · 12-26-2007, 10:11 PM

I "worded" my application funny so I didnt have to get a "selles" permit. I'm only offering a "service". I dont "sell photos". I offer photography service (images are "free")

keanephoto · 07-18-2009, 07:55 AM

Thanks for all this great advice. I've learned more from this forum than anywhere else. As for insurance? What type of insurance should I be getting and do you have an idea on costs???

pixartist · 09:43 AM

Quote:

Originally Posted by RochinPhotography

I "worded" my application funny so I didnt have to get a "selles" permit. I'm only offering a "service". I dont "sell photos". I offer photography service (images are "free")

I would recommend nobody does this. You're playing with fire here. The reason for this is because the State Board of Eq considers your time in photography and the work handed to the client as one tangible item. Session fees are taxible in California whenever any item is delivered. I knew a friend of mine who did this and he ended up paying $50k in back taxes and penalties. This is just really bad advice.

pixartist · 07-18-2009, 09:42 AM

Quote:

Originally Posted by keanephoto

Thanks for all this great advice. I've learned more from this forum than anywhere else. As for insurance? What type of insurance should I be getting and do you have an idea on costs???

Professional Photographers of California and Professional Photographers of America have excellent insurance programs from health, business and equipment. PPA also has an indemnification insurance that is second to none and covers for the event that your memory cards or harddrives go kaput in the middle of jobs. They will cover for file recovery of your drives as well! And, this idemnification insurance is included with your membership.

RochinPhotography · 07-18-2009, 10:10 PM

Quote:

Originally Posted by pixartist

I would recommend nobody does this. You're playing with fire here. The reason for this is because the State Board of Eq considers your time in photography and the work handed to the client as one tangible item. Session fees are taxible in California whenever any item is delivered. I knew a friend of mine who did this and he ended up paying $50k in back taxes and penalties. This is just really bad advice.

Never said I didnt have to pay taxes. (If you look at the post above I stated I was just getting my paperwork filled out to send in my payment) I just didnt have to pay for the extra permit

Now here in PA it is VERY weird. I was told I don't even need a business lic. unless I have a brick n mortar location.