Business License

island_girl1 · **Business License -** 07-06-2008, 07:53 AM

About a month ago my husband and I stumbled into a local gallery here in town. The gallery features photographers and artist from San Pedro. My husband got to talking with the woman that was there (found out she's the owner), and started telling her about my freelance work. She told us to bring in a CD with low rez photos, my bio, photo and contact info on it and she'd be more than happy to keep it on file for future shows or if a client comes in looking for a certain themed photo.

So my question is, since I shoot freelance, should I get a license in case someone wants to buy one of my pictures? Even if I decided to sell them online too?

RochinPhotography · 07-06-2008, 11:32 AM

IMHO, YES!

I got my business license last year. Keeps taxes easy and separates everything. I also get to write everything off. HAHAH

Killjoy · 07-06-2008, 12:49 PM

Dang! Now THERE's a bonus I hadn't considered.

island_girl1 · 07-06-2008, 08:30 PM

Thanks for your input, Jonathan!

ARSchmidt · 05-22-2009, 05:34 PM

my general advice would be to error on the side of caution and get the license. i am a freelance web developer by profession and do most of my work remotely on the internet. when i moved to huntington beach, i got a license mainly because a) i work out of my home, and b) because i planned to target locals for new business. although i don't have many clients come to my home and there are no deliveries and such, if anybody did ask, i have that piece of paper that's going to eliminate any hassles.

Lilikoi the cat · 05-22-2009, 09:47 PM

Alan, you could then write off a portion of your trip as a stock photo trip.

Killjoy · 05-23-2009, 04:49 AM

To quote Arsenio Hall,

"Things that make you go Hmmmmm."

00silvergt · 06-04-2009, 11:18 AM

Quote:

Originally Posted by Lilikoi the cat

Alan, you could then write off a portion of your trip as a stock photo trip.

But only against the income you received as a photographer. It will not be a write-off against your regular income.

Killjoy · 06-04-2009, 11:32 AM

WOW! Now THERE's a voice from the past.
How are you doing Garret?

With a business license, couldn't I write off new gear too?

00silvergt · 06-04-2009, 11:51 AM

LOL, Hey Alan. I'm Great! Only against income that you get from photography. Also you need to designate that the equipment is 40%, 50%, 100% or whatever for business use and this percentage is what you can write off as a tax deduction, which really is not much, considering.

Here's an example. You made $50K from your day job. $35K net profit from photography. You spent $10K on equipment and stuff for the business. But you need to designate that your camera/equipment is used 50% business and 50% personal. So the $5K which is 50% of the 10K spent can be used to reduce your income for the photography. So on your 1040/540 you will put in that you made 50K day job, 35K photography, then subtract 5K from the photography only...to then that becomes 30K add that to your 50K, your taxable income is 80K.

Killjoy · 06-04-2009, 12:01 PM

Well, seeing as I got laid off last week, my income from my day job would be $0.

Yeah, Intel closed the FAB in Santa Clara.
Amazing how they were able to sneak that one by the media, huh?

Edit: Guess I have to change my Avatar now.

RaceImages · 06-04-2009, 12:30 PM

Quote:

Originally Posted by Killjoy

Edit: Guess I have to change my Avatar now.

I think Roger has one you can use

Killjoy · 06-04-2009, 12:47 PM

Quote:

Originally Posted by RaceImages

I think Roger has one you can use

Cue the rim shot. Ba Dum Bum.

00silvergt · 06-04-2009, 01:32 PM

I don't get it...LOL... Wow, no more Intel FAB in California? Is Intel going to do what AMD did and close all their FABs and use a third party to produce their chips?

jeffbanke · 06-04-2009, 01:56 PM

I would suggest that you talk to your tax accountant. You can only write down the cost of equipment if you can demonstrate that you are in good faith attempting to start and make a business out of photography, which means that you must at some time amke a profit or the IRS will come and chase you down.

The point being that it is probably better to wait until you actually make a profit at photography before you write off any equipment. If the IRS suspect that it is just a hobby they will not allow any write offs, at least this is what my tax guy told me before I went full time.

Killjoy · 06-04-2009, 02:29 PM

Thanks for the info Jeff.

Actually Garret, sort of. My job is going to China.
Intel is opening a FAB there. I can't wait. I figure a few years down the road, China will tell Intel
"Thanks for the factory, and getting it up and running. Now get out of our country!"

00silvergt · 06-05-2009, 11:52 AM

Quote:

Originally Posted by Killjoy

Thanks for the info Jeff.

Actually Garret, sort of. My job is going to China.
Intel is opening a FAB there. I can't wait. I figure a few years down the road, China will tell Intel
"Thanks for the factory, and getting it up and running. Now get out of our country!"

LOL, China huh? I guess Intel got tired of paying real wages!

More or less what Jeff said! LOL, in other words, don't buy crap thinking it will be a writeoff until you can make some money out of your pics, first. LOL

RochinPhotography · 06-06-2009, 05:48 AM

As a sole propritor (sp) your business is your personal life. I would speak with your accountant. 100% of my equipment was written off. Gas, food, hotel, ect for anything I do leading up to or during a photo shoot is considered "business" and all a write off.

RochinPhotography · 06-06-2009, 05:50 AM

Quote:

Originally Posted by jeffbanke

I would suggest that you talk to your tax accountant. You can only write down the cost of equipment if you can demonstrate that you are in good faith attempting to start and make a business out of photography, which means that you must at some time amke a profit or the IRS will come and chase you down.

The point being that it is probably better to wait until you actually make a profit at photography before you write off any equipment. If the IRS suspect that it is just a hobby they will not allow any write offs, at least this is what my tax guy told me before I went full time.

That too. You can only claim the business as a loss for 2 or 3 years. After that if you don't show profits (increasing on a yearly basis) prepare for the goon squad to come to your door looking for back taxes

Chilly Willy · 06-10-2009, 05:44 AM

Just finished reading this discussion. It's enlightening to say the least. I was considering a license myself, but it sounds like the first step is getting an accountant to figure it out. I've been working on jobs here and there, purchasing programs/supplies/equipment along the way and was told by friends that having a license was the way to go to write it off. But hearing that you've got to figure out the percentages of personal vs. business means I've got to go work on my math first. Think I'll wait on the license until I understand it more.

SanDShooter · 07-16-2009, 07:13 PM

So key notes would be...learn taxes, don't mess with the IRS, get an accountent, and don't buy from China?

Lilikoi the cat · 07-16-2009, 07:25 PM

and
Buy equipment for personal use.
Rent it from yourself.
Turn a profit.
Start buying more equipment to offset income and profit increases but for the business.
I think it is well documented what the rental rates are for equipment for auditing purposes.
my $0.00002