August 9, 2023 • 49 mins
Are you ready to evolve your photography passion into a business? This episode guides you through the basics of setting up a photography enterprise. We illuminate the process of creating and registering your business, placing special emphasis on the advantages of launching as an LLC. You'll gain insights into protecting your personal assets, savoring tax benefits and the pitfalls that could potentially endanger your personal assets.
Imagine a world where your photography business is not just a hobby, but a full-fledged professional venture. Let's take a trip into that world, examining the importance of a distinctive business name, the process of securing an EIN number, and how to obtain necessary permits or licenses. We'll also introduce you to a secret weapon - Client Relationship Management (CRM) software. I'll share my experience to help you choose the best fit for your business. Discover how automation can revolutionize your operations, boosting productivity and providing more time to focus on your passion.
The grand finale of our journey delves into the realm of tax deductions - a crucial aspect for any successful business. Learn about record keeping, staying updated with tax laws and the expenses you can deduct. And remember, treating your photography venture with the seriousness it deserves goes a long way in ensuring your success. From proper registration and business structuring to utilizing readily available tools, this episode is packed with valuable insights to elevate your photography from hobby to business.
Questions or Comments? Reach out at MariaB@CluedUpBTS.com and I'll be in touch* directly or address your comment on the podcast.
*By submitting a question or statement, you agree that your submission can be discussed publicly on the podcast, website, or other platforms owned by or affiliated with CluedUpBTS and its parent company, HeadshotNJ, and affiliate company Maria B Photography Studio. while retaining your anonymity.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hi everyone.
In this week's episode, we'regoing to talk about making your
photography your businessBecause, let's face it, most
photographers do not operatetheir photography like a
business.
Sure, you love photography I dotoo and you like making money
with your photography.
But are you willing to go thatextra mile and make your art
(00:24):
into your business?
It's really not that hard.
Let's dive in.
Welcome to Clued Up with Maria B, the behind the scenes
photography podcast.
Clued Up is your insider's viewto building successful magazine
style photo shoots.
We talk design and concept,fashion and style, tech, social
(00:46):
media and, of course, businessPlus.
So much more, including how toavoid common photography
pitfalls.
You'll also meet some specialguests who work behind the
camera and in front of the lens.
Whether you're an aspiringphotographer, a portrait
photographer thinking aboutstarting your own business, or
you just have an interest inwhat it takes to plan and
(01:07):
execute professional shoots,you've come to the right place.
I'm your host, maria B.
Now let's get you Clued Up.
Okay, so let's dive into thisweek's episode.
We're going to start with thevery basics of turning your
photography into a business.
First, we're going to talkabout the process of creating
(01:28):
and registering your business,and then we're going to talk
about the benefits of makingyour photography into a business
and, for the sake of simplicity, I'm just going to talk about
what you've probably often heardreferred to as an LLC.
That's our starting point.
First, we're going to talkabout an LLC in general terms
(01:52):
and then an LLC specific tophotography.
So an LLC, which stands for alimited liability company.
It's actually a type ofbusiness entity, it's a business
structure, and that structureprovides protection for the
(02:17):
owners of the business, whetherthe owners are partnerships
between one or two or threepeople or more, I believe or, as
in the case with mostphotographers, sole
proprietorship orentrepreneurship.
So what does this mean?
(02:38):
What is an LLC?
What is a limited liabilitycompany?
As an LLC, your personal assets,your home, your car, your
savings, your investmentsthey're generally protected from
your company's debts and yourcompany's liabilities.
(03:01):
In other words, in the event offinancial troubles or legal
issues, your personal assetscannot be touched.
Your business existsindependent of you as a person.
Your assets, your home, yourcar, your savings, your
(03:22):
investments cannot be touchedand are not at risk.
Llcs are popular among smallbusinesses and that's because,
whether you're a soloentrepreneur or you have a
partnership with someone,forming an LLC is very easy to
(03:44):
do.
It essentially consists ofsimply filling out some online
forms.
It's minimal amount of work andyou usually only have to pay a
small fee.
It does require at least as faras I know annual registration.
So I live in New Jersey and I'mrequired to file or renew my
(04:07):
status as an LLC annually, andthat costs me $125 every year.
I first registered in 2016.
It has been the same price eversince.
Now, what's the big deal aboutbeing an LLC?
Well, there are actually quitea few, a few major points that
(04:32):
you should be aware of and youshould consider in determining
if you want to become an LLC,and if you're a photographer, I
think it's a great idea.
So we've already talked aboutthe first benefit to being an
LLC or creating an LLC, and thatis the limited liability that
(04:55):
is, separating your personalassets from your business assets
or from your business, I shouldsay and this protects your
personal assets.
But here's the thing you needto understand that, while LLC
status provides liabilityprotection, certain actions on
(05:16):
the part of the business ownerthings like making personal
guarantees on loans or engagingin illegal activities can
restrict the liability of yourcompany and consequently, expose
the owner of the company or thepartners.
(05:39):
It could put their personalassets at risk.
Short term, you have to operateyour business on the up and up.
It's important to understandthat regulations and
requirements of forming andoperating an LLC in each state
(05:59):
or jurisdiction if you'reoutside of the US differs.
So, state to state, you need tolook at what what the
requirement is in that state andwhat it takes to maintain that
status as an LLC.
So, whether it's a state or USjurisdiction, you need to know
(06:23):
what the laws are in that givenarea.
If you are outside of theUnited States, you need to look
at what your location requires.
The second major benefit offiling as an LLC is taxation.
We're going to talk about thisin depth a bit later, but as an
(06:45):
LLC, you can choose to be taxedas a solo entrepreneur, also
referred to as a soleproprietorship, or as a
partnership if there's more thanone owner, or you can be taxed
as a corporation.
It all depends on what yourbusiness structure is and what
(07:09):
is the best way to optimize yourtax situation based on your
needs, circumstances and thestructure of your business.
And then the third majorbenefit of registering as a
business and as an LLC is thatyou have the ability to claim
business expenses on your incometax return.
(07:31):
But in order to do this, you'vegot to be really organized.
I would say it's not just amatter of being organized.
You really need to bedisciplined in finding a way to
organize and to track yourspending, particularly your
spending related to photographyor related to your business.
(07:52):
You have to treat your businesslike it's a business and not
like it's a hobby.
If you're used to having anaccountant do your taxes, you
may want to find and you maywant to change that and find an
accountant who specializes intaxation for artists.
(08:14):
And there are even accountantswho specialize in taxation for
photographers.
Now, I know all this sounds alittle complicated and kind of
heavy-handed and you may besitting there listening to this
thing.
Nah, I'm just doing this forthe fun.
But here are a couple of thingsto consider.
(08:36):
The reality is that stuffhappens right.
You have a client you get alongwith.
A client may even be a friend,may even be a family member, and
You're photographing them.
You're photographing I don'tknow your second cousin's first
(08:59):
communion or something, andUncle Dave trips over your
camera bag or I don't know.
He's tripping and he goes toBrace himself and he does it by
holding on to your tripod orsomething and he gets injured.
Let's say you may have had agood relationship relationship
(09:25):
with him before, but he mightblame you for his injury.
He may hold you personallyresponsible.
So think about things like pain, suffering, emotional distress
and all the other terms that youhear about when people are
(09:48):
looking for money, and Do youreally want to take the chance?
Do you really want to take thechance that someone may get
injured and may hold youresponsible and the only thing
you're gonna have are yourpersonal assets that may get
(10:08):
wiped out, or a portion of them,or you may have to pay for
somebody's Hospitalization orsomething like that?
So Do you really want to takethat chance?
If you're doing photographyphotography for fun and you're
getting paid, you're makingundeclared income and that's a
problem for your favorite uncleUncle Sam, also known as the IRS
(10:35):
and that's the second big pointto Becoming an LLC and making
your photography into a business.
Your expenses are your expensesas a photography business or
your expenses as a business.
Your expenses will willoutweigh your income for years
(10:57):
before you're profitable.
It is so rare For a newbusiness to become profitable.
You're lucky if, after fiveyears, your head is above water.
It's not an even a matter ofnot paying the government their
share when it comes to the theyou know a little bit of money
(11:17):
that you make in your firstcouple of years as a business.
What's really important is thatyou can increase your tax refund
by claiming your businessexpenses, particularly if you
are a photographer.
If you're not an LLC and you'renot filing as a business when
(11:39):
you do your taxes, You're noteven leaving money on the table.
You're actually just throwingmoney away.
Let me repeat that if you are abusiness and you have not
registered as a business right,you have not filed as a business
(12:01):
and because you haven't filed,you cannot claim your business
expenses.
You cannot claim your businessexpenses when you do your taxes.
You're not just Leaving moneyon the table.
Leaving money on the table isyou file your business expenses
(12:21):
but you forgot to add in thatyou bought a laptop specifically
for your business, right?
That's.
That's leaving money on thetable.
If you're a business and youknow if you operate as A
business or if you shouldoperate as a business, but you
(12:42):
choose not to, you're throwingmoney away.
You're not even leaving it onthe table.
You're just throwing it awayand walking away.
So pretty much that's ourdiscussion in general terms, and
now we're gonna get to thespecifics of photography.
So how do you register yourbusiness?
(13:02):
How do you register yourphotography as a business?
It's actually quite simple.
First, come up with a name.
You may want to do an internetsearch to make sure the name you
choose is unique.
Some states in fact havebusiness naming rules, so you
(13:24):
may want to make sure, checkwith you know your local
government or check regulationsonline for your state about
naming your business.
Here's a tip Most photographersuse their name in their
business without considerationthat one day they may want to
sell the business.
(13:44):
If my name is Mary Jones andI'm Mary Jones photography, and
Five, ten, fifteen years fromnow, I want to sell my
photography business, how do Isell something that has my name
on it, right?
So that's something to considerwhen you're choosing the name
(14:07):
of your photography business,because that could be a problem
years down the road again whenyou choose when and if you
choose to sell your business.
Just something to think about.
Also, know that you do not haveto include the term LLC in the
(14:27):
name of your company.
So officially in New Jersey, Iam registered as headshot NJ LLC
, but on documents, on businesscards, it just says headshot NJ,
so the LLC part does not haveto be included in the name of
(14:48):
your company.
So after you've chosen a name,here's what you need to do.
You need to find your state'sbusiness filing website, and
that's just as Easy as googlinghow to file a business in Texas,
for example.
Here in New Jersey, we dobusiness dot njgov and From
(15:12):
there I Navigate, and it's thesame with most states.
You navigate through completingthese online forms that are
relatively short.
You're completing forms withinformation about your business,
who owns it, who manages it andthe specifics of the type of
work that you do, and that'sbecause every specialty, for
(15:36):
example photography, has a codeor something called a sequence
number, and that number isassociated specifically with
your business.
You also have to providecontact information for the
person who will receive legaland official documents for your
business, and usually, if you'rea photographer, there's no one
(15:58):
else to do that stuff other thanyou.
If you're a two-personphotography business, you may be
asked to complete an operatingagreement, and that agreement
clarifies the roles of eachpartner.
Once you've completed all ofyour information and paid your
(16:19):
fee, you get something called anEIN number.
Ein stands for employeridentification number and your
EIN number is your uniqueidentifier for your photography
business.
Every business that isregistered with a state has an
(16:40):
EIN number, an employeridentification number.
One thing in addition to doingthis Within your state, doing it
at a state level, you also haveto check with your local
municipality to see if Permitsor licenses are required to
(17:04):
Sustain or to have For yourbusiness some places.
You have to have like a littlecertificate and has to be shown
in a public area in yourbusiness.
So these are just some nittygritty things you need to simply
ask about and comply with.
(17:26):
All right, please, please,please, do not make the mistake
of thinking that because you donot have a brick and mortar
place to do photography, like astudio or a designated location
for your photography work, thatyou Should not file your
(17:46):
business with your state.
It doesn't matter if you runyour photography business out of
the trunk of your car, thecorner of your apartment, your
mother's basement, or if yousimply rent space to space or
you simply photograph people inthe park.
You should still file yourbusiness to receive the tax
(18:10):
benefits.
As I said earlier, here in NewJersey, I'm required to submit
an annual report, which isessentially my registration
renewal, and that cost me ahundred twenty five dollars
every year.
Obviously, the amount that youhave to pay will vary state to
state and Will also varydepending on where you live if
(18:34):
you are out of the United States.
So, after filing your business,you're officially a registered
business according to your state.
Here are some things to help yourun your photography business
like a true business.
You may not agree with all ofthem, but I believe if you want
(18:56):
to be a pro and you wantpotential clients to see you as
a pro, there are certain thingsyou need to have in order.
First, get business insurance,or specifically photography
insurance, because there is sucha thing.
Remember that scenario a littlewhile ago about the person at
(19:17):
the you know first communion whotrips.
Well, that client trips.
Or you know somebody attendingthe event trips and they sustain
an injury.
Again, I'm sure you don't wantto pay their ER bill or their
hospital bills.
You don't want to pay that outof pocket.
(19:37):
So you need to have insurancethat covers you as a business.
Get your photography businessinsurance, the other reason you
need business insurance is forloss or damages to your camera,
your lenses or other photographyequipment.
(20:00):
And, lastly, if you're asked tophotograph an event at a venue,
the venue may require you toshow proof of insurance.
I've had to show proof at leastfour times.
It's wonderful when you knowyou're filling out the form.
As the photographer for anevent, you get the.
Usually, what happens is theform is sent to the person who's
(20:22):
running the event and they canforward it to you, or or the
person at the venue will getyour email address from the
person running the event andthat contact person will
introduce themselves and say,hey, we need for you to fill
this out, and one of the thingsyou need to fill out is proof of
insurance.
Like you have to provide themwith a copy.
(20:42):
So you know it's one thing tothink, oh, you're gonna go
photograph a reception, oryou're gonna go and photograph a
sweet 16, or you'rePhotographing an event for a
company, and then, a few daysbefore, somebody says, oh, we
need a copy of your insuranceand you don't have it.
That is definitely somethingthat you Should have as a
(21:05):
photographer.
Here's another thing that youneed to do if you want to be
considered a real business byyour potential clients, you need
to separate your finances andbuy that, and by that, by that,
I mean separate your businessfinances from your personal
finances.
(21:26):
Your business should have itsown accounts and, as much as
possible, use your business'sdebit or credit card to conduct
business transactions.
You need to find an app thatallows you to easily indicate
that your purchases ortransactions were business
related and when you conduct atransaction that results in
(21:49):
getting a receipt, put thatreceipt and all other
photography related receipts inone place and, as a matter of
fact, go one step further and,either on an app or using
different folders Folders be itdigital or physical folders
Categorize your spending.
(22:09):
Categorize your businessspending Equipment versus
education, versus travel, versuswhatever and this will make tax
time so much easier for you.
If you really want to make yourbusiness, your business
financial life, easier, chooseone day of the week in which you
(22:33):
sit down and you go through allof your past weeks photography
related finances and youcategorize them.
I know it sounds like anirritation and it can, but if
you do it every week, it'sreally, really easy.
You get fast at it and when taxtime comes around, you have to
(22:55):
Sit down to some tables.
You're gonna love me for this.
You just have to commit to it.
The next thing that makes you areal business to potential
clients is using your businessname.
Just put that.
Whatever your business name is,you put it to use.
(23:16):
If you're going to build awebsite or have one built for
you, use your business name, andthis is actually something you
should think about even beforeyou file the LLC or file as an
LLC.
What is your business name?
Your email, your Instagram,your Facebook and all of your
(23:39):
other social media accountsshould be named accordingly, so
that clients potential clientscan find you in all places, all
sites and on whatever socialmedia platform you happen to be
on.
My official business name, as Isaid before, is HeadshotNJ.
(24:03):
My email is mariabe atheadshotnjcom.
My Instagram should be atheadshotnj, but that name was
already taken.
But you get the gist of it.
Whatever your name is, itshould be the same, be it email
(24:26):
or social media.
Next, in this world of directmessaging, it seems that we no
longer use phones forservice-based businesses, but if
, by chance, you do, I suggestyou get a dedicated phone line
and the best way to avoid havingto purchase a second phone or
(24:48):
having to pay for another lineis simply go to Google Voice and
sign up with no charge to havea dedicated business phone
number.
All calls that go to thatnumber will then be forwarded to
your personal phone or to yourphone number, but you will then
(25:09):
have a dedicated business phoneor business phone number for
your clients.
This helps to make sure youappear as a legitimate business
with a dedicated business phonenumber.
Next, if you want to appearprofessional, conduct your
(25:30):
financial transactionsprofessionally through some type
of service such as PayPal orStripe or something that lets
clients know you accept debit orcredit or what have you.
Please stop doing businessusing Cash App.
(25:52):
It's just, it's notprofessional.
I use Cash App too, but usuallyI use it like my friends and I
are paying for something and youwant to send them the money, so
that you don't have a bunch ofpeople all paying for one thing,
so one person pays and the restof us we send them our share of
(26:17):
that payment.
Cash App for business justdoesn't look good.
It's like saying, hey, I'mmaking money this way, but I
really don't want anyone to knowabout it.
Through PayPal, stripe, cloveror whatever else you use, you
(26:37):
can send your clients.
You can send potential clientsquotes.
Those quotes can becomeinvoices if they agree to the
quote, and you can send themreceipts for their payments.
Operate your business like abusiness.
If you want to go one stepfurther, purchase or subscribe
(26:59):
to a CRM, a client relationsmanagement software platform
that also allows you to sendquotes, invoices and receipts.
But in addition, you have anongoing record of all of your
clients, of all of your leads,and you have the ability to
(27:20):
develop standardized systems toautomate emails with reminders
and to minimize the going backand forth that happens between
photographer and client as youtry to do things like set up a
date for a photo session.
You can send them proposals,you can send them a list of
(27:45):
dates and you can just take careof things.
That way, you don't have to goback and forth doing email tags.
Your client gets a portal whereall of their documents if
you've done, if you do contractswith them what you should, if
you do contracts if you theywill always have access to their
(28:09):
receipts from payments thatthey've made to you.
It's ultra professional.
However, I do have to say thatCRM's client relation management
software can be a little bit onthe pricey side.
You can pay for them upfront,which is usually a little bit
(28:32):
less expensive, or you can payfor them monthly If that works
out better for you financially.
But just know, as with mostthings these days, if you make a
monthly payment, when youmultiply it by 12, you're gonna
find you're actually paying outmore than if you can possibly
make one payment for an entireyear upfront.
I would advise you to only useCRM's again client relation
(28:58):
management software If you havea steady flow of clients because
, like I said, the subscriptionscan be pricey.
The convenience, however, isdefinitely worth the money if
you can afford it, but it's onlyvaluable if you have a constant
(29:19):
flow or you tend to haveconsistent bookings for your
photography business.
So I use Studio Ninja.
I tried it, I liked it.
I've used it for about three, Ithink three, years now.
I've tried some of the othersbefore settling on Studio Ninja.
(29:44):
I think I've tried some of theothers before settling on Studio
Ninja.
I tried 17 hats.
I tried Tavo, I don't know.
There are a bunch of them outthere.
There are a lot of them outthere.
There are some that are verysmall it's a sprout, I don't
remember but there are some thatare pretty small and you think
(30:07):
that kind of gives you thebetter chance for one-on-one
service.
If you have questions aboutwhat you're doing, if you're
interested in trying one ofthese CRMs, what I suggest is
you look into them when theyhave no obligation trials, or
(30:28):
you can sign up, but it's freefor the first seven days or
something, and just make sure byday five or day six that if you
don't want it, you sign off ofit so that you don't end up
paying that first month's fee ifit's not something that works
for you.
But go down the list of CRMsuntil you find what really works
(30:52):
for you, what's manageable,what you could customize to your
particular business.
And again, don't use this ifyou don't have the client's
support to really benefit fromthis.
If you're getting one or twoclients a month or something
(31:15):
like that, like one client aweek, don't.
This is not for you.
This is for people who havelike a constant flow of clients
and they need to track down andmake sure they're well organized
in terms of what they've sentto which client, just so you
(31:35):
know.
No matter which one you choose,it takes some digging to find
the one that's right for you andthere tends to be a learning
curve, even after you find theone you like best.
My advice just stick to it.
Once you get it, you get it andit becomes pretty fluid and
(31:56):
easy to manipulate as needed.
Using a CRM makes organizingyour clients, your payments,
your calendar and almosteverything else about your
photography business crystalclear.
Now, just a moment ago, or justfor a moment, I wanna get back
(32:16):
to what many people consider thetrue benefit of being an LLC,
and that's the tax benefit.
The following are a list ofcategories that I've put
together of various taxdeductions and various expenses
for photographers that helplower your taxable income.
If you do not take advantage Iknow I am preaching, I'm sorry,
(32:45):
I said it before if you are aphotographer and you do not file
as a bill and you do not fileas a business and you do not
conduct your photography like abusiness, you are throwing money
away.
Here are some of the thingsthat demonstrate that, because
(33:08):
these are things that you canlist as business expenses when
you do your taxes.
If you operate a business, ifyou operate a photography
business, if you have filed asan LLC okay, things that are
(33:29):
deductible, things that areexpensive.
First, equipment and gear.
You can deduct the cost ofcameras, lenses, tripods,
lighting equipment, computersand other photography related
equipment.
And you know what I just listedout.
(33:50):
There is the top of the iceberg, right, because look at how
much stuff you need.
In the past year alone, I'vepurchased clamps, different
types of clamps, different typesof holders, I've purchased cold
shoes, I've purchased what doyou call it?
Purchased new round head speedlights.
(34:14):
You know you don't think you'vepurchased a whole bunch of
stuff, but when you sit and youlook, you really do purchase a
lot of stuff to support yourphotography business.
So treat it like a business Allright.
So that's number one equipmentand gear.
(34:39):
Number two you can deduct forbusiness expenses.
Business expenses include costsassociated with running your
photography business, such as,when you rent a studio, the
utilities that support thatstudio, such as heat and
(35:00):
electricity, if you happen topay those.
The cost of your businessinsurance is deductible.
Your office supplies and yourinternet expenses are deductible
.
Again, this is just the tip ofthe iceberg.
These are just examples.
(35:20):
Number three your travelexpenses.
If you travel for photographyassignments, you can deduct
expenses such as transportation,transportation, lodging, meals
and even part of your vehicleexpenses if you use your car for
business purposes.
(35:41):
Number four marketing andpromotion.
You can deduct expenses relatedto advertising, to your website
development, to your businesscards.
You can deduct for onlinemarketing and promotional
material, such as the samplesyou order from your lab samples
(36:06):
for wall art, samples for prints, samples for albums tax
deductible business expenses.
Number five professional fees.
You can deduct the fees paid toassistants that help you in
your studio or the person whoyou pay to help you lug stuff
(36:30):
into a studio you've rented yourretoucher, your second shooter
if you have a wedding or a bigevent, the models that you pay
to pose for you, to do your testlighting or to just try out a
new technique or something.
Your stylist and any otherprofessional you hire for your
(36:56):
photography and for yourphotography projects.
Don't forget your fee tophotography associations.
That may come up in anothercategory.
Number six software andsubscriptions.
You can deduct the cost ofphoto editing software Lightroom
(37:22):
, photoshop, capture One, alienSkin or whatever it's called now
.
All of these are deductible.
Number seven education andtraining.
You can deduct expenses relatedto photography workshops,
courses, seminars and othereducational resources that you
(37:47):
use to help you improve yourphotography business, in
particular, all of thoseeducational tutorials that you
have paid for, downloaded andhaven't watched yet.
Tax deductible Number eight yourhome office deduction.
(38:11):
If you use a portion of yourhome, it has to be designated
for your photography business.
You cannot go in there.
That is my photography area ofthe house.
It has to be specific.
If you use a portion of yourhome exclusively for your
photography business, you may beable to deduct a portion of
(38:36):
your home related expenses suchas rent, mortgage, mortgage
interest, property taxes andutilities If you have a
designated area for photographywithin your home.
(38:56):
Number nine professionalprofessional memberships and
licenses.
You can deduct fees paid formemberships such as PPA or other
memberships and professionalphotography associations and any
necessary licenses.
Like I happened to mentionbefore that, some places require
(39:17):
you to have a license orsomething displayed saying
something about who you are,what you do and that your state
has essentially designated youto do whatever you're doing.
The cost of that is deductible.
Repairs and maintenance you candeduct the cost associated with
(39:39):
maintaining and repairing yourphotography equipment and your
studio space.
So, for example, there's a fanin my studio, there's a ceiling
fan and it stopped working and Ihave to get an electrician to
come and take a look at it Taxdeductible.
Lastly and this one does notapply to a lot of people, but if
(40:06):
you have a thriving and I domean a thriving photography
business and you are able to payfor your healthcare insurance
based on what you make as aphotographer, the cost of your
health insurance premiums arealso deductible.
(40:27):
And, ladies and gentlemen, thisis just the tip of the iceberg.
Truly, if you do photography asa business, you can claim these
and other deductions, includingyour annual fee to register as
an LLC.
You can claim all of these whenyou do your income tax.
(40:50):
So is it worth it to file andbe a business, be registered as
a business, definitely.
But again and I'm sure, likemany things, you guys are tired
of hearing me say, say this yourbusiness has to be treated like
a business.
So you see, it is worth it, itis worth the time and the effort
(41:13):
, but just remember, you have totreat your photography as a
business.
You need a dedicated bankaccount.
You need to use invoices, youneed to use quotes, invoices and
receipts.
You need to limit your use ofcash app and remember that you
(41:34):
don't need a brick and mortarbuilding to take advantage of
business tax advantages.
You can operate your businesson the road, on the side of the
road, out of your car, in acorner of your home, as long as
you operate your photographybusiness like a business.
(41:55):
So it's very important we'recoming to the end here but it's
very important that you complywith tax laws and regulations,
which can change over time, andit's rare that people are aware
of these changes.
It's rare that the averageperson is aware of these changes
.
So it's important to stayinformed and consult with a tax
(42:20):
professional or an accountant toensure you're taking advantage
of all the deductions that youare eligible for as a
photographer.
Remember, you definitely wantto conduct proper record keeping
.
It's a crucial part ofproviding documentation for
(42:41):
deducted expenses in case you'reaudited.
No funny stuff.
Okay, as I end this episode, Ijust want to say the following.
You know there are someepisodes that kind of stand out
to me as being important.
They're not just fun, they'renot just informative, they're
(43:04):
really important and I'm goingto tell you that this episode,
this episode on making yourphotography your business, is
one of the most important ones,because I think it shows you
what the potential is if you runyour photography like a
(43:27):
business.
You make photography friendswhen you're in this or
photography acquaintances, and Ilook at the way people do
business and by no means am Isaying I am great at this,
because I'm not but I look atthe way people conduct their
business and it's just like whydon't you give yourself upper
(43:50):
hand here?
How much effort does it take tojust go online and file and be
a business?
Stop doing your business likein the corner, like you're doing
your business on the alley, inthe alley.
Let me, you know, let me bringout my phone.
(44:11):
You can cash out me, I'll do,I'll do your shoot on Tuesday.
Like, really, really, come on,guys, we're better than this.
We are so much better than this.
You know, a couple of peopleI've followed over time have
said that when photographers or,as they call them, so-called
(44:34):
photographers know, whenphotographers conduct themselves
in a way that is not becomingof the profession, it helps to
bring all of us down.
And that's one of the reasonswhy and again, like many things
I've talked about them beforebut that's what makes pricing
(44:55):
such an issue for us, because wehave photographers who are
charging hundreds and thousandsof dollars for their products
and for their services and thenyou meet somebody who you know,
for 200 bucks you'll get all thephotos that I took and the
digital.
You know you'll get thedigital's, you'll get all the.
(45:18):
And it makes it harder for therest of us.
It's hard for me to conductbusiness when I've got
photography friends taking cashout payment for $125 after you
(45:39):
know, I want to say like afterdoing a photo shoot.
But I've met people who, likethey don't even discuss the cost
, they don't discuss the pricebefore they have the client in
front of the camera and at theend of the shoot the client says
to the photographer oh, what doI owe you?
(46:01):
And then what are you going tosay?
Right, like you can't give arealistic number, which is that,
well, just booking the sessionand photos is like 300, 400, 500
, whatever.
You can't say that now becauseno one's going to believe you.
(46:25):
You must conduct your businesslike a business, and the only
person I'm criticizing here ismyself, because I've been down
that road.
I've been down that road thathas led me to where I am now,
and it's a road I don't want youguys to go down, which is you
(46:45):
think that by lowering yourprices, by charging less than
the guy down the street.
You're going to get moreclients, you're going to get
more business.
You're going to take that $50for those 100 digital and you're
(47:10):
going to accept it by a cashapp.
You're going to do that.
And then when somebody comes tome and I say, well, if you want
a custom album with 30 photos,it's going to cost you such and
such and such.
And they're like what?
Because you've already trainedthem that they can get photos
for next to nothing.
(47:32):
Accept your photography businesslike a business.
Be militant about that and Ihate to say that I don't even
like that word but be militantabout it.
It's a business.
If it's not a business, don'tbuy $1,000 cameras and $1,000
lenses.
(47:52):
Don't do it.
When I see somebody I recentlymet someone who was using a
camera the poor girl couldn'teven operate it I'm like where's
this?
Where's this?
Because I'm trying to help herout and she doesn't know it was
a really I don't want to say,but it looked like a camera that
(48:14):
was more than like I don't know, $3,000 or $4,000 that you
can't even operate.
How do you think she'sconducting her business?
I really I just want us all torise up together to elevate in
this world of photography andbusiness together.
(48:35):
So treat your business like abusiness and tell your
photography friends to treattheir business like a business
so that we all stand up and weall make what we deserve for the
amount of work we put intodelivering beautiful photos for
(48:58):
our clients.
Treat your business like abusiness, thank you.
Thanks so much for listening tothis episode of Clued Up with
Me, your host, maria B.
If you've enjoyed this podcast,please be sure to rate,
subscribe and review on yourpreferred podcast listening
(49:18):
platform.
I really appreciate yoursupport.
When you rate, subscribe andreview, you're also helping
other listeners find and enjoythis podcast.
Until next time.
Hi everyone.
In this week's episode, we'regoing to talk about making your
photography your businessBecause, let's face it, most
photographers do not operatetheir photography like a
business.
Sure, you love photography I dotoo and you like making money
with your photography.
But are you willing to go thatextra mile and make your art
(00:24):
into your business?
It's really not that hard.
Let's dive in.
Welcome to Clued Up with Maria B, the behind the scenes
photography podcast.
Clued Up is your insider's viewto building successful magazine
style photo shoots.
We talk design and concept,fashion and style, tech, social
(00:46):
media and, of course, businessPlus.
So much more, including how toavoid common photography
pitfalls.
You'll also meet some specialguests who work behind the
camera and in front of the lens.
Whether you're an aspiringphotographer, a portrait
photographer thinking aboutstarting your own business, or
you just have an interest inwhat it takes to plan and
(01:07):
execute professional shoots,you've come to the right place.
I'm your host, maria B.
Now let's get you Clued Up.
Okay, so let's dive into thisweek's episode.
We're going to start with thevery basics of turning your
photography into a business.
First, we're going to talkabout the process of creating
(01:28):
and registering your business,and then we're going to talk
about the benefits of makingyour photography into a business
and, for the sake of simplicity, I'm just going to talk about
what you've probably often heardreferred to as an LLC.
That's our starting point.
First, we're going to talkabout an LLC in general terms
(01:52):
and then an LLC specific tophotography.
So an LLC, which stands for alimited liability company.
It's actually a type ofbusiness entity, it's a business
structure, and that structureprovides protection for the
(02:17):
owners of the business, whetherthe owners are partnerships
between one or two or threepeople or more, I believe or, as
in the case with mostphotographers, sole
proprietorship orentrepreneurship.
So what does this mean?
(02:38):
What is an LLC?
What is a limited liabilitycompany?
As an LLC, your personal assets,your home, your car, your
savings, your investmentsthey're generally protected from
your company's debts and yourcompany's liabilities.
(03:01):
In other words, in the event offinancial troubles or legal
issues, your personal assetscannot be touched.
Your business existsindependent of you as a person.
Your assets, your home, yourcar, your savings, your
(03:22):
investments cannot be touchedand are not at risk.
Llcs are popular among smallbusinesses and that's because,
whether you're a soloentrepreneur or you have a
partnership with someone,forming an LLC is very easy to
(03:44):
do.
It essentially consists ofsimply filling out some online
forms.
It's minimal amount of work andyou usually only have to pay a
small fee.
It does require at least as faras I know annual registration.
So I live in New Jersey and I'mrequired to file or renew my
(04:07):
status as an LLC annually, andthat costs me $125 every year.
I first registered in 2016.
It has been the same price eversince.
Now, what's the big deal aboutbeing an LLC?
Well, there are actually quitea few, a few major points that
(04:32):
you should be aware of and youshould consider in determining
if you want to become an LLC,and if you're a photographer, I
think it's a great idea.
So we've already talked aboutthe first benefit to being an
LLC or creating an LLC, and thatis the limited liability that
(04:55):
is, separating your personalassets from your business assets
or from your business, I shouldsay and this protects your
personal assets.
But here's the thing you needto understand that, while LLC
status provides liabilityprotection, certain actions on
(05:16):
the part of the business ownerthings like making personal
guarantees on loans or engagingin illegal activities can
restrict the liability of yourcompany and consequently, expose
the owner of the company or thepartners.
(05:39):
It could put their personalassets at risk.
Short term, you have to operateyour business on the up and up.
It's important to understandthat regulations and
requirements of forming andoperating an LLC in each state
(05:59):
or jurisdiction if you'reoutside of the US differs.
So, state to state, you need tolook at what what the
requirement is in that state andwhat it takes to maintain that
status as an LLC.
So, whether it's a state or USjurisdiction, you need to know
(06:23):
what the laws are in that givenarea.
If you are outside of theUnited States, you need to look
at what your location requires.
The second major benefit offiling as an LLC is taxation.
We're going to talk about thisin depth a bit later, but as an
(06:45):
LLC, you can choose to be taxedas a solo entrepreneur, also
referred to as a soleproprietorship, or as a
partnership if there's more thanone owner, or you can be taxed
as a corporation.
It all depends on what yourbusiness structure is and what
(07:09):
is the best way to optimize yourtax situation based on your
needs, circumstances and thestructure of your business.
And then the third majorbenefit of registering as a
business and as an LLC is thatyou have the ability to claim
business expenses on your incometax return.
(07:31):
But in order to do this, you'vegot to be really organized.
I would say it's not just amatter of being organized.
You really need to bedisciplined in finding a way to
organize and to track yourspending, particularly your
spending related to photographyor related to your business.
(07:52):
You have to treat your businesslike it's a business and not
like it's a hobby.
If you're used to having anaccountant do your taxes, you
may want to find and you maywant to change that and find an
accountant who specializes intaxation for artists.
(08:14):
And there are even accountantswho specialize in taxation for
photographers.
Now, I know all this sounds alittle complicated and kind of
heavy-handed and you may besitting there listening to this
thing.
Nah, I'm just doing this forthe fun.
But here are a couple of thingsto consider.
(08:36):
The reality is that stuffhappens right.
You have a client you get alongwith.
A client may even be a friend,may even be a family member, and
You're photographing them.
You're photographing I don'tknow your second cousin's first
(08:59):
communion or something, andUncle Dave trips over your
camera bag or I don't know.
He's tripping and he goes toBrace himself and he does it by
holding on to your tripod orsomething and he gets injured.
Let's say you may have had agood relationship relationship
(09:25):
with him before, but he mightblame you for his injury.
He may hold you personallyresponsible.
So think about things like pain, suffering, emotional distress
and all the other terms that youhear about when people are
(09:48):
looking for money, and Do youreally want to take the chance?
Do you really want to take thechance that someone may get
injured and may hold youresponsible and the only thing
you're gonna have are yourpersonal assets that may get
(10:08):
wiped out, or a portion of them,or you may have to pay for
somebody's Hospitalization orsomething like that?
So Do you really want to takethat chance?
If you're doing photographyphotography for fun and you're
getting paid, you're makingundeclared income and that's a
problem for your favorite uncleUncle Sam, also known as the IRS
(10:35):
and that's the second big pointto Becoming an LLC and making
your photography into a business.
Your expenses are your expensesas a photography business or
your expenses as a business.
Your expenses will willoutweigh your income for years
(10:57):
before you're profitable.
It is so rare For a newbusiness to become profitable.
You're lucky if, after fiveyears, your head is above water.
It's not an even a matter ofnot paying the government their
share when it comes to the theyou know a little bit of money
(11:17):
that you make in your firstcouple of years as a business.
What's really important is thatyou can increase your tax refund
by claiming your businessexpenses, particularly if you
are a photographer.
If you're not an LLC and you'renot filing as a business when
(11:39):
you do your taxes, You're noteven leaving money on the table.
You're actually just throwingmoney away.
Let me repeat that if you are abusiness and you have not
registered as a business right,you have not filed as a business
(12:01):
and because you haven't filed,you cannot claim your business
expenses.
You cannot claim your businessexpenses when you do your taxes.
You're not just Leaving moneyon the table.
Leaving money on the table isyou file your business expenses
(12:21):
but you forgot to add in thatyou bought a laptop specifically
for your business, right?
That's.
That's leaving money on thetable.
If you're a business and youknow if you operate as A
business or if you shouldoperate as a business, but you
(12:42):
choose not to, you're throwingmoney away.
You're not even leaving it onthe table.
You're just throwing it awayand walking away.
So pretty much that's ourdiscussion in general terms, and
now we're gonna get to thespecifics of photography.
So how do you register yourbusiness?
(13:02):
How do you register yourphotography as a business?
It's actually quite simple.
First, come up with a name.
You may want to do an internetsearch to make sure the name you
choose is unique.
Some states in fact havebusiness naming rules, so you
(13:24):
may want to make sure, checkwith you know your local
government or check regulationsonline for your state about
naming your business.
Here's a tip Most photographersuse their name in their
business without considerationthat one day they may want to
sell the business.
(13:44):
If my name is Mary Jones andI'm Mary Jones photography, and
Five, ten, fifteen years fromnow, I want to sell my
photography business, how do Isell something that has my name
on it, right?
So that's something to considerwhen you're choosing the name
(14:07):
of your photography business,because that could be a problem
years down the road again whenyou choose when and if you
choose to sell your business.
Just something to think about.
Also, know that you do not haveto include the term LLC in the
(14:27):
name of your company.
So officially in New Jersey, Iam registered as headshot NJ LLC
, but on documents, on businesscards, it just says headshot NJ,
so the LLC part does not haveto be included in the name of
(14:48):
your company.
So after you've chosen a name,here's what you need to do.
You need to find your state'sbusiness filing website, and
that's just as Easy as googlinghow to file a business in Texas,
for example.
Here in New Jersey, we dobusiness dot njgov and From
(15:12):
there I Navigate, and it's thesame with most states.
You navigate through completingthese online forms that are
relatively short.
You're completing forms withinformation about your business,
who owns it, who manages it andthe specifics of the type of
work that you do, and that'sbecause every specialty, for
(15:36):
example photography, has a codeor something called a sequence
number, and that number isassociated specifically with
your business.
You also have to providecontact information for the
person who will receive legaland official documents for your
business, and usually, if you'rea photographer, there's no one
(15:58):
else to do that stuff other thanyou.
If you're a two-personphotography business, you may be
asked to complete an operatingagreement, and that agreement
clarifies the roles of eachpartner.
Once you've completed all ofyour information and paid your
(16:19):
fee, you get something called anEIN number.
Ein stands for employeridentification number and your
EIN number is your uniqueidentifier for your photography
business.
Every business that isregistered with a state has an
(16:40):
EIN number, an employeridentification number.
One thing in addition to doingthis Within your state, doing it
at a state level, you also haveto check with your local
municipality to see if Permitsor licenses are required to
(17:04):
Sustain or to have For yourbusiness some places.
You have to have like a littlecertificate and has to be shown
in a public area in yourbusiness.
So these are just some nittygritty things you need to simply
ask about and comply with.
(17:26):
All right, please, please,please, do not make the mistake
of thinking that because you donot have a brick and mortar
place to do photography, like astudio or a designated location
for your photography work, thatyou Should not file your
(17:46):
business with your state.
It doesn't matter if you runyour photography business out of
the trunk of your car, thecorner of your apartment, your
mother's basement, or if yousimply rent space to space or
you simply photograph people inthe park.
You should still file yourbusiness to receive the tax
(18:10):
benefits.
As I said earlier, here in NewJersey, I'm required to submit
an annual report, which isessentially my registration
renewal, and that cost me ahundred twenty five dollars
every year.
Obviously, the amount that youhave to pay will vary state to
state and Will also varydepending on where you live if
(18:34):
you are out of the United States.
So, after filing your business,you're officially a registered
business according to your state.
Here are some things to help yourun your photography business
like a true business.
You may not agree with all ofthem, but I believe if you want
(18:56):
to be a pro and you wantpotential clients to see you as
a pro, there are certain thingsyou need to have in order.
First, get business insurance,or specifically photography
insurance, because there is sucha thing.
Remember that scenario a littlewhile ago about the person at
(19:17):
the you know first communion whotrips.
Well, that client trips.
Or you know somebody attendingthe event trips and they sustain
an injury.
Again, I'm sure you don't wantto pay their ER bill or their
hospital bills.
You don't want to pay that outof pocket.
(19:37):
So you need to have insurancethat covers you as a business.
Get your photography businessinsurance, the other reason you
need business insurance is forloss or damages to your camera,
your lenses or other photographyequipment.
(20:00):
And, lastly, if you're asked tophotograph an event at a venue,
the venue may require you toshow proof of insurance.
I've had to show proof at leastfour times.
It's wonderful when you knowyou're filling out the form.
As the photographer for anevent, you get the.
Usually, what happens is theform is sent to the person who's
(20:22):
running the event and they canforward it to you, or or the
person at the venue will getyour email address from the
person running the event andthat contact person will
introduce themselves and say,hey, we need for you to fill
this out, and one of the thingsyou need to fill out is proof of
insurance.
Like you have to provide themwith a copy.
(20:42):
So you know it's one thing tothink, oh, you're gonna go
photograph a reception, oryou're gonna go and photograph a
sweet 16, or you'rePhotographing an event for a
company, and then, a few daysbefore, somebody says, oh, we
need a copy of your insuranceand you don't have it.
That is definitely somethingthat you Should have as a
(21:05):
photographer.
Here's another thing that youneed to do if you want to be
considered a real business byyour potential clients, you need
to separate your finances andbuy that, and by that, by that,
I mean separate your businessfinances from your personal
finances.
(21:26):
Your business should have itsown accounts and, as much as
possible, use your business'sdebit or credit card to conduct
business transactions.
You need to find an app thatallows you to easily indicate
that your purchases ortransactions were business
related and when you conduct atransaction that results in
(21:49):
getting a receipt, put thatreceipt and all other
photography related receipts inone place and, as a matter of
fact, go one step further and,either on an app or using
different folders Folders be itdigital or physical folders
Categorize your spending.
(22:09):
Categorize your businessspending Equipment versus
education, versus travel, versuswhatever and this will make tax
time so much easier for you.
If you really want to make yourbusiness, your business
financial life, easier, chooseone day of the week in which you
(22:33):
sit down and you go through allof your past weeks photography
related finances and youcategorize them.
I know it sounds like anirritation and it can, but if
you do it every week, it'sreally, really easy.
You get fast at it and when taxtime comes around, you have to
(22:55):
Sit down to some tables.
You're gonna love me for this.
You just have to commit to it.
The next thing that makes you areal business to potential
clients is using your businessname.
Just put that.
Whatever your business name is,you put it to use.
(23:16):
If you're going to build awebsite or have one built for
you, use your business name, andthis is actually something you
should think about even beforeyou file the LLC or file as an
LLC.
What is your business name?
Your email, your Instagram,your Facebook and all of your
(23:39):
other social media accountsshould be named accordingly, so
that clients potential clientscan find you in all places, all
sites and on whatever socialmedia platform you happen to be
on.
My official business name, as Isaid before, is HeadshotNJ.
(24:03):
My email is mariabe atheadshotnjcom.
My Instagram should be atheadshotnj, but that name was
already taken.
But you get the gist of it.
Whatever your name is, itshould be the same, be it email
(24:26):
or social media.
Next, in this world of directmessaging, it seems that we no
longer use phones forservice-based businesses, but if
, by chance, you do, I suggestyou get a dedicated phone line
and the best way to avoid havingto purchase a second phone or
(24:48):
having to pay for another lineis simply go to Google Voice and
sign up with no charge to havea dedicated business phone
number.
All calls that go to thatnumber will then be forwarded to
your personal phone or to yourphone number, but you will then
(25:09):
have a dedicated business phoneor business phone number for
your clients.
This helps to make sure youappear as a legitimate business
with a dedicated business phonenumber.
Next, if you want to appearprofessional, conduct your
(25:30):
financial transactionsprofessionally through some type
of service such as PayPal orStripe or something that lets
clients know you accept debit orcredit or what have you.
Please stop doing businessusing Cash App.
(25:52):
It's just, it's notprofessional.
I use Cash App too, but usuallyI use it like my friends and I
are paying for something and youwant to send them the money, so
that you don't have a bunch ofpeople all paying for one thing,
so one person pays and the restof us we send them our share of
(26:17):
that payment.
Cash App for business justdoesn't look good.
It's like saying, hey, I'mmaking money this way, but I
really don't want anyone to knowabout it.
Through PayPal, stripe, cloveror whatever else you use, you
(26:37):
can send your clients.
You can send potential clientsquotes.
Those quotes can becomeinvoices if they agree to the
quote, and you can send themreceipts for their payments.
Operate your business like abusiness.
If you want to go one stepfurther, purchase or subscribe
(26:59):
to a CRM, a client relationsmanagement software platform
that also allows you to sendquotes, invoices and receipts.
But in addition, you have anongoing record of all of your
clients, of all of your leads,and you have the ability to
(27:20):
develop standardized systems toautomate emails with reminders
and to minimize the going backand forth that happens between
photographer and client as youtry to do things like set up a
date for a photo session.
You can send them proposals,you can send them a list of
(27:45):
dates and you can just take careof things.
That way, you don't have to goback and forth doing email tags.
Your client gets a portal whereall of their documents if
you've done, if you do contractswith them what you should, if
you do contracts if you theywill always have access to their
(28:09):
receipts from payments thatthey've made to you.
It's ultra professional.
However, I do have to say thatCRM's client relation management
software can be a little bit onthe pricey side.
You can pay for them upfront,which is usually a little bit
(28:32):
less expensive, or you can payfor them monthly If that works
out better for you financially.
But just know, as with mostthings these days, if you make a
monthly payment, when youmultiply it by 12, you're gonna
find you're actually paying outmore than if you can possibly
make one payment for an entireyear upfront.
I would advise you to only useCRM's again client relation
(28:58):
management software If you havea steady flow of clients because
, like I said, the subscriptionscan be pricey.
The convenience, however, isdefinitely worth the money if
you can afford it, but it's onlyvaluable if you have a constant
(29:19):
flow or you tend to haveconsistent bookings for your
photography business.
So I use Studio Ninja.
I tried it, I liked it.
I've used it for about three, Ithink three, years now.
I've tried some of the othersbefore settling on Studio Ninja.
(29:44):
I think I've tried some of theothers before settling on Studio
Ninja.
I tried 17 hats.
I tried Tavo, I don't know.
There are a bunch of them outthere.
There are a lot of them outthere.
There are some that are verysmall it's a sprout, I don't
remember but there are some thatare pretty small and you think
(30:07):
that kind of gives you thebetter chance for one-on-one
service.
If you have questions aboutwhat you're doing, if you're
interested in trying one ofthese CRMs, what I suggest is
you look into them when theyhave no obligation trials, or
(30:28):
you can sign up, but it's freefor the first seven days or
something, and just make sure byday five or day six that if you
don't want it, you sign off ofit so that you don't end up
paying that first month's fee ifit's not something that works
for you.
But go down the list of CRMsuntil you find what really works
(30:52):
for you, what's manageable,what you could customize to your
particular business.
And again, don't use this ifyou don't have the client's
support to really benefit fromthis.
If you're getting one or twoclients a month or something
(31:15):
like that, like one client aweek, don't.
This is not for you.
This is for people who havelike a constant flow of clients
and they need to track down andmake sure they're well organized
in terms of what they've sentto which client, just so you
(31:35):
know.
No matter which one you choose,it takes some digging to find
the one that's right for you andthere tends to be a learning
curve, even after you find theone you like best.
My advice just stick to it.
Once you get it, you get it andit becomes pretty fluid and
(31:56):
easy to manipulate as needed.
Using a CRM makes organizingyour clients, your payments,
your calendar and almosteverything else about your
photography business crystalclear.
Now, just a moment ago, or justfor a moment, I wanna get back
(32:16):
to what many people consider thetrue benefit of being an LLC,
and that's the tax benefit.
The following are a list ofcategories that I've put
together of various taxdeductions and various expenses
for photographers that helplower your taxable income.
If you do not take advantage Iknow I am preaching, I'm sorry,
(32:45):
I said it before if you are aphotographer and you do not file
as a bill and you do not fileas a business and you do not
conduct your photography like abusiness, you are throwing money
away.
Here are some of the thingsthat demonstrate that, because
(33:08):
these are things that you canlist as business expenses when
you do your taxes.
If you operate a business, ifyou operate a photography
business, if you have filed asan LLC okay, things that are
(33:29):
deductible, things that areexpensive.
First, equipment and gear.
You can deduct the cost ofcameras, lenses, tripods,
lighting equipment, computersand other photography related
equipment.
And you know what I just listedout.
(33:50):
There is the top of the iceberg, right, because look at how
much stuff you need.
In the past year alone, I'vepurchased clamps, different
types of clamps, different typesof holders, I've purchased cold
shoes, I've purchased what doyou call it?
Purchased new round head speedlights.
(34:14):
You know you don't think you'vepurchased a whole bunch of
stuff, but when you sit and youlook, you really do purchase a
lot of stuff to support yourphotography business.
So treat it like a business Allright.
So that's number one equipmentand gear.
(34:39):
Number two you can deduct forbusiness expenses.
Business expenses include costsassociated with running your
photography business, such as,when you rent a studio, the
utilities that support thatstudio, such as heat and
(35:00):
electricity, if you happen topay those.
The cost of your businessinsurance is deductible.
Your office supplies and yourinternet expenses are deductible
.
Again, this is just the tip ofthe iceberg.
These are just examples.
(35:20):
Number three your travelexpenses.
If you travel for photographyassignments, you can deduct
expenses such as transportation,transportation, lodging, meals
and even part of your vehicleexpenses if you use your car for
business purposes.
(35:41):
Number four marketing andpromotion.
You can deduct expenses relatedto advertising, to your website
development, to your businesscards.
You can deduct for onlinemarketing and promotional
material, such as the samplesyou order from your lab samples
(36:06):
for wall art, samples for prints, samples for albums tax
deductible business expenses.
Number five professional fees.
You can deduct the fees paid toassistants that help you in
your studio or the person whoyou pay to help you lug stuff
(36:30):
into a studio you've rented yourretoucher, your second shooter
if you have a wedding or a bigevent, the models that you pay
to pose for you, to do your testlighting or to just try out a
new technique or something.
Your stylist and any otherprofessional you hire for your
(36:56):
photography and for yourphotography projects.
Don't forget your fee tophotography associations.
That may come up in anothercategory.
Number six software andsubscriptions.
You can deduct the cost ofphoto editing software Lightroom
(37:22):
, photoshop, capture One, alienSkin or whatever it's called now
.
All of these are deductible.
Number seven education andtraining.
You can deduct expenses relatedto photography workshops,
courses, seminars and othereducational resources that you
(37:47):
use to help you improve yourphotography business, in
particular, all of thoseeducational tutorials that you
have paid for, downloaded andhaven't watched yet.
Tax deductible Number eight yourhome office deduction.
(38:11):
If you use a portion of yourhome, it has to be designated
for your photography business.
You cannot go in there.
That is my photography area ofthe house.
It has to be specific.
If you use a portion of yourhome exclusively for your
photography business, you may beable to deduct a portion of
(38:36):
your home related expenses suchas rent, mortgage, mortgage
interest, property taxes andutilities If you have a
designated area for photographywithin your home.
(38:56):
Number nine professionalprofessional memberships and
licenses.
You can deduct fees paid formemberships such as PPA or other
memberships and professionalphotography associations and any
necessary licenses.
Like I happened to mentionbefore that, some places require
(39:17):
you to have a license orsomething displayed saying
something about who you are,what you do and that your state
has essentially designated youto do whatever you're doing.
The cost of that is deductible.
Repairs and maintenance you candeduct the cost associated with
(39:39):
maintaining and repairing yourphotography equipment and your
studio space.
So, for example, there's a fanin my studio, there's a ceiling
fan and it stopped working and Ihave to get an electrician to
come and take a look at it Taxdeductible.
Lastly and this one does notapply to a lot of people, but if
(40:06):
you have a thriving and I domean a thriving photography
business and you are able to payfor your healthcare insurance
based on what you make as aphotographer, the cost of your
health insurance premiums arealso deductible.
(40:27):
And, ladies and gentlemen, thisis just the tip of the iceberg.
Truly, if you do photography asa business, you can claim these
and other deductions, includingyour annual fee to register as
an LLC.
You can claim all of these whenyou do your income tax.
(40:50):
So is it worth it to file andbe a business, be registered as
a business, definitely.
But again and I'm sure, likemany things, you guys are tired
of hearing me say, say this yourbusiness has to be treated like
a business.
So you see, it is worth it, itis worth the time and the effort
(41:13):
, but just remember, you have totreat your photography as a
business.
You need a dedicated bankaccount.
You need to use invoices, youneed to use quotes, invoices and
receipts.
You need to limit your use ofcash app and remember that you
(41:34):
don't need a brick and mortarbuilding to take advantage of
business tax advantages.
You can operate your businesson the road, on the side of the
road, out of your car, in acorner of your home, as long as
you operate your photographybusiness like a business.
(41:55):
So it's very important we'recoming to the end here but it's
very important that you complywith tax laws and regulations,
which can change over time, andit's rare that people are aware
of these changes.
It's rare that the averageperson is aware of these changes
.
So it's important to stayinformed and consult with a tax
(42:20):
professional or an accountant toensure you're taking advantage
of all the deductions that youare eligible for as a
photographer.
Remember, you definitely wantto conduct proper record keeping
.
It's a crucial part ofproviding documentation for
(42:41):
deducted expenses in case you'reaudited.
No funny stuff.
Okay, as I end this episode, Ijust want to say the following.
You know there are someepisodes that kind of stand out
to me as being important.
They're not just fun, they'renot just informative, they're
(43:04):
really important and I'm goingto tell you that this episode,
this episode on making yourphotography your business, is
one of the most important ones,because I think it shows you
what the potential is if you runyour photography like a
(43:27):
business.
You make photography friendswhen you're in this or
photography acquaintances, and Ilook at the way people do
business and by no means am Isaying I am great at this,
because I'm not but I look atthe way people conduct their
business and it's just like whydon't you give yourself upper
(43:50):
hand here?
How much effort does it take tojust go online and file and be
a business?
Stop doing your business likein the corner, like you're doing
your business on the alley, inthe alley.
Let me, you know, let me bringout my phone.
(44:11):
You can cash out me, I'll do,I'll do your shoot on Tuesday.
Like, really, really, come on,guys, we're better than this.
We are so much better than this.
You know, a couple of peopleI've followed over time have
said that when photographers or,as they call them, so-called
(44:34):
photographers know, whenphotographers conduct themselves
in a way that is not becomingof the profession, it helps to
bring all of us down.
And that's one of the reasonswhy and again, like many things
I've talked about them beforebut that's what makes pricing
(44:55):
such an issue for us, because wehave photographers who are
charging hundreds and thousandsof dollars for their products
and for their services and thenyou meet somebody who you know,
for 200 bucks you'll get all thephotos that I took and the
digital.
You know you'll get thedigital's, you'll get all the.
(45:18):
And it makes it harder for therest of us.
It's hard for me to conductbusiness when I've got
photography friends taking cashout payment for $125 after you
(45:39):
know, I want to say like afterdoing a photo shoot.
But I've met people who, likethey don't even discuss the cost
, they don't discuss the pricebefore they have the client in
front of the camera and at theend of the shoot the client says
to the photographer oh, what doI owe you?
(46:01):
And then what are you going tosay?
Right, like you can't give arealistic number, which is that,
well, just booking the sessionand photos is like 300, 400, 500
, whatever.
You can't say that now becauseno one's going to believe you.
(46:25):
You must conduct your businesslike a business, and the only
person I'm criticizing here ismyself, because I've been down
that road.
I've been down that road thathas led me to where I am now,
and it's a road I don't want youguys to go down, which is you
(46:45):
think that by lowering yourprices, by charging less than
the guy down the street.
You're going to get moreclients, you're going to get
more business.
You're going to take that $50for those 100 digital and you're
(47:10):
going to accept it by a cashapp.
You're going to do that.
And then when somebody comes tome and I say, well, if you want
a custom album with 30 photos,it's going to cost you such and
such and such.
And they're like what?
Because you've already trainedthem that they can get photos
for next to nothing.
(47:32):
Accept your photography businesslike a business.
Be militant about that and Ihate to say that I don't even
like that word but be militantabout it.
It's a business.
If it's not a business, don'tbuy $1,000 cameras and $1,000
lenses.
(47:52):
Don't do it.
When I see somebody I recentlymet someone who was using a
camera the poor girl couldn'teven operate it I'm like where's
this?
Where's this?
Because I'm trying to help herout and she doesn't know it was
a really I don't want to say,but it looked like a camera that
(48:14):
was more than like I don't know, $3,000 or $4,000 that you
can't even operate.
How do you think she'sconducting her business?
I really I just want us all torise up together to elevate in
this world of photography andbusiness together.
(48:35):
So treat your business like abusiness and tell your
photography friends to treattheir business like a business
so that we all stand up and weall make what we deserve for the
amount of work we put intodelivering beautiful photos for
(48:58):
our clients.
Treat your business like abusiness, thank you.
Thanks so much for listening tothis episode of Clued Up with
Me, your host, maria B.
If you've enjoyed this podcast,please be sure to rate,
subscribe and review on yourpreferred podcast listening
(49:18):
platform.
I really appreciate yoursupport.
When you rate, subscribe andreview, you're also helping
other listeners find and enjoythis podcast.
Until next time.
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