The Business Side
Let me first preface this article with the following, what I say may or may not apply to you and your circumstances nor to your state's laws. Look into it for yourself. This should serve as a rough guideline though. Some small business owners when they first begin forget that they are moving away from doing something as a hobby to doing it for a living. When you enter this arena the rules change and you have to be prepared to act as a business owner and not just a hobbyist.
The Wedding Photographer's Geico
When I first started as a wedding photographer I had no idea that I needed insurance. I backed up all my camera gear, images, workstations, and even had a backup photographer so why would I need one. The thing is it's for all of the things you can't plan for. There are two primary types you need to worry about, liability and malpractice. One covers your rear in case you somehow fail in your normal duties and are sued. The other covers you in case you injure someone on the job and covers your gear in case it is damaged. Both are covered through PPA which to be honest is a great community for photographers.
Death and Taxes
A lot of wedding photographers and home based businesses do not pay taxes. This does not make it OK for one more person to not pay taxes. If you are caught the fines and penalties can be extremely stiff. Do the right thing and pay your taxes. Just put aside a given amount for each wedding into a savings account specifically for your taxes.
You'll be surprised at the number of legitimate tax write offs a small home based business has. If you use a certain percentage of your home as a home office then part of your rent and utilities are able to be written off. Purchases for your business, travel expenses, meals at client meetings, and so on are all tax deductible under most circumstances.
Read up on it and find a certified CPA to help you out. It's not as bad as most people make it out to be. In most cases most small businesses are not considered profitable for the first couple of years anyway so you will probably not end up owing much, but even if you do it's your responsibility to pay those taxes. How else would our government be able to function?
License to ILL
A business license may or may not be required in your area. It's been awhile since I got mine but I remember thinking it was going to be a hassle. To be honest it was extremely easy and even easier to renew it every year. It's also extremely cheap in most areas and adds certain credence to your business in the eyes of clients.
Your Business Money Does Not Belong Under Your Mattress!
Equally important to your budding business is where you're going to put your hard earned money. Sure you're going to pay bills with it and could go without an account, but what do you do the first time someone writes a check to "My Pensacola Wedding Photographer". Try getting that cashed at a bank. So once you have your business license you can and should sign up for a business checking account. Any money that comes into your business should come in there first. Once you've paid your business expenses and put aside money for taxes then take what you need for your personal life. Remember to also save up for that fancy new lens you've had your eye on.
Read on
Don't miss my other articles in the series. They cover other equally important aspects of starting your own wedding photography business and shouldn't be missed. Remember they shouldn't be your sole reference, but should help to get you thinking about a plan.
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