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Do i need to be an llc as a photographer?
Anonymous2 views4 answers
I am trying to create a company as a photographer and will eventually start making money for my services and need to know what is needed to do it correctly. I would assume 1) business license, 2) trademark for logo. but what else is needed. I requested business insurance quotes from my current insurance agent and have not heard back.
If you do not use an entity, you will be considered as a sole proprietorship and have no protection from the claims of business related creditors. As a result, most businesses are set up in an entity of some type. In your situation, as a 100% owner, you have three entity choices, including a single member LLC, a S corporation or a C corporation. You will likely shy far away from being a C corporation unless you plan to invest heavily in and retain earnings in the company for business needs, so you are left a single member LLC and an S Corporation. The likely answer is a single member LLC since it is the simplest type entity, treated as a sole proprietorship for income tax purposes (i.e., no separate tax return and all goes on schedule on your normal IRS Form 1040 personal income tax return) and it provides some level of asset protection for your against business liability claims that you did not sign personally to guarantee. The reason to go the S corporation route is the ability for a profitable company to take some of earnings as compensation and some as profits. Profits are not subject to employment taxes whereas compensation (and all of sole proprietorship earnings) are subject to employment taxes. The key is that the compensation must be reasonable for the services being provided. The S corporation is required to file a separate tax return annually so your annual costs will be higher with a S corporation. No perfect answer exists and to comes down to what you feel is more important, simplicity and lower costs but with possibly higher employment taxes, or somewhat more complexity, with higher costs with potentially lower employment taxes. Freedom and choices, it is a beautiful thing. Finally, my high recommendation is that you engage a good CPA to assist you regardless of which type entity you choose, and you should seek your CPA guidance in this regard as well. Good luck with your new business venture.
You're right about the business license and/or trademark. You may want to consider being taxed as a 'small business' by electing 'S' status either as an LLC or as an 'S' Corporation - so that you can 'flow-thru' the business expenses in starting up and getting your business marketed over to your personal income tax returns. I'd speak with a Georgia Incorporation or Business Attorney and sort out your options. Best of Luck in your NEW Business !
That is a very open-ended question, but I would certainly recommend incorporating either as a corporation or as an LLC for all the reasons already provided. Single member LLCs are easy to set up and maintain.
Deborah Antonette StewartSocial Security LawyersAlpharetta, GA ·
I agree with the posts of my colleagues. You will want to determine if you want to establish yourself as a corporation, LLC, or sole proprietor. Each has its advantages and disadvantages, and a business attorney can help you sort through the strengths and weaknesses of each type. In addition, you should make sure you have properly drafted bylaws (for corp) or an operating agreement (if an LLC), to govern the daily activiites of your entity. Otherwise, Georgia law will dictate what happens in the event of a dissolution or dispute, or death of a member, or yourself. Good luck to you!
