Type of license?

[tweenkal]

2 people, unrelated, 1 business...

What type of business license do we get?

[cory1848]

Could go with a general partnership, basically the same thing as a SP...not much protection from anything, but its legit and good tax write offs... next up would LLC....

[bwolford]

This is a business structure issue, not a license issue. At least in my part of the world.

[cory1848]

This is a business structure issue, not a license issue. At least in my part of the world.

I was assuming the OP meant structure...to get a license, its just an occupational license that you can get at your local city or county government.

[tweenkal]

I was assuming the OP meant structure...to get a license, its just an occupational license that you can get at your local city or county government.

That is exactly what I mean. Thank you.

[PhotosGuy]

I'd be inclined to get individual licenses & operate under the same roof, but that's just me & I don't know what the relative tax advantages would be.
This is really why you should get professional advice.

[tweenkal]

I'd be inclined to get individual licenses & operate under the same roof, but that's just me & I don't know what the relative tax advantages would be.
This is really why you should get professional advice.

I realize how stupid this sounds...but who do I talk to? A lawyer? Is that the professional advice you recommend? Or another person well versed in business/tax ventures? I'm completely lost in this.

With the way you suggested, getting 2 individual licenses, would one of those licenses be in the business name, and the other set up as a random name? Or would there essentially be 3 licenses, 2 individual and then 1 joint?

Did I mention I was confused?

[tracknut]

In my experience, a CPA is the right person to talk to regarding such things. He will be able to explain the differences (basically in a partnership, a LLC or a corporation) as far as the tax advantages of each. The legal ramifications of each may also be an issue, but much of that may be secondary to the tax/income component. For that, you may want to engage a lawyer.

A business license is required for an entity to do business. You probably have two options: 1) Each of you is in business alone, and you just share referals etc, or 2) you are in business together, as partners. So in the first case it's two biz licenses, in the second case it's one biz license. But the whole biz license thing is the teeniest part of this discussion, and should be the last thing you're worrying about, not the first.

Figure out how you two are going to structure your business (probably with a CPA's help), then create the business (hiring a lawyer if need be, but much of that could be done simply by filling out the relevant state paperwork yourself), and last of all get a business license, a bank account, etc.

Dave

[PhotosGuy]

Dave has good advice.
The reason I suggested having your own license is I'm looking down the road when you've established your own clients & may have a parting of the ways. It just makes it easier to go out on your own without any fighting over who gets the name, & who gets this & that.
Even marriage is only 50% successful! ;)

[cory1848]

Dave has good advice.
The reason I suggested having your own license is I'm looking down the road when you've established your own clients & may have a parting of the ways. It just makes it easier to go out on your own without any fighting over who gets the name, & who gets this & that.
Even marriage is only 50% successful! ;)

Only problem with this, is when is comes to advertising...Who do I make the check out to? That can get really confusing to clients... I previously had a general partnership and it worked out well. We split all expenses and kept the profits seperate. It wasnt a photo biz though. I will soon be forming an LLC once work picks up.

[DDCSD]

The only ship that won't sail is a partnership....

Where are you located at specifically?

Likely all you need is a sales tax license. You should call your city information desk. They can tell you who you need to talk to.


Virginia has a great website with a ton of info on starting a small business.
http://www.dba.virginia.gov/smdev/

Check out the Busniess Launchpad:
http://www.dba.virginia.gov/smdev/launchpad/

[DDCSD]

Only problem with this, is when is comes to advertising...Who do I make the check out to?

Whomever you are advertising with? I don't understand your question?

[PhotosGuy]

Whomever you are advertising with? I don't understand your question? I don't get it either.

[Tigershark]

contact your Secretary of State's office, they have staff that will walk you through the steps of setting up an LLC or anything you want to do and they don't charge you. Then talk to an account before filling out all the paperwork to answer specific questions good luck

[tweenkal]

The only ship that won't sail is a partnership....

Where are you located at specifically?

Likely all you need is a sales tax license. You should call your city information desk. They can tell you who you need to talk to.


Virginia has a great website with a ton of info on starting a small business.
http://www.dba.virginia.gov/smdev/

Check out the Busniess Launchpad:
http://www.dba.virginia.gov/smdev/launchpad/

I'm in the VA Beach area.

Hmmm...so just a sales tax license possibly and not actually a business operating license? I hadn't thought of that. I will call the city today and speak to them about it.

Thanks for the links. I've been one the VA Small Business one quite a bit and you're right - it's a wealth of information. I'm still just having a hard time deciding what to do. It would have been so much easier if I had just done this on my own...which I really wish I had done. I feel stuck now. :(



I wondered the same thing too, about the individual licenses. How do we set up the business bank account if we don't have a joint business license? Clients would be paying someone different every time, and that doesn't seem very professional. We would want them to pay 1 "account" (for lack of a better term). How would that work?

Sorry if I am asking really stupid questions. I'm just trying to understand all of this.

This is a lot of work just to take pictures! :P

[cory1848]

The only ship that won't sail is a partnership....



Why is that?

[cory1848]

Whomever you are advertising with? I don't understand your question?

Two people operating under the same business name but keeping separate business licenses. On a paid project, only one person can have the business name, thus having a bank account with that business name. So.. I shoot a wedding...under xyz photography, everyone knows my business as xyz photography...

When it comes time for the customer to write the check, who do they make it out to? xyz photography? or your separate company name? I am just saying that with advertising, it can get really confusing for customers...especially if a customer was mailing in a deposit to xyz photography that you cant cash...

Then there is the issues with tax write offs...How does one split up writes offs if your working together but have separate businesses? I am sure it can be done, but it gets really tricky..

[DDCSD]

Why is that?

I personally think that partnerships are a terrible idea. I have rarely seen one that worked out in the long term. It usually ends up that one person is doing more work or putting in more personal time/money/gear and both get payed the same, or one thinks that they are doing all the work (even if they aren't) and that they should get paid more than the other person. I've seen people that were best friends and worked together for years start up a business together. They split up after a couple years and still don't talk, and that was five years ago. And they actually ran a very succesful business. The resentment got terrible.

Then there is the liability factor. Let's say your partner gets injured, what happens then? Do you have to buy them out? Or your partner's 16 year old daughter gets in a car accident and kills someone and they get sued for everything they have. LLC's and S-Corps don't protect people nearly as much as they think.

I actually have refused to become a partner in my family's business. It keeps everything much cleaner if there is one owner/boss, and everyone else is an employee. I am just a well payed employee.

Two people operating under the same business name but keeping separate business licenses. On a paid project, only one person can have the business name, thus having a bank account with that business name. So.. I shoot a wedding...under xyz photography, everyone knows my business as xyz photography...

When it comes time for the customer to write the check, who do they make it out to? xyz photography? or your separate company name? I am just saying that with advertising, it can get really confusing for customers...especially if a customer was mailing in a deposit to xyz photography that you cant cash...

Then there is the issues with tax write offs...How does one split up writes offs if your working together but have separate businesses? I am sure it can be done, but it gets really tricky..

You should have a business account (whether or not it is a partnership) and run every bit of income/expense through that account. Your customers would write checks to that account (made out to xyz photography), and any expenses (camera gear/advertising/printing/etc...) would come out of that account. Never use that account for any type of personal expense. This makes it very easy to make up profit/loss statements. You would write paychecks to yourselves from this account also. Running everything that is business related through this account makes tax time much easier.

If you are concerned about being able to cash a check written to "xyz photography", the bank will have all of the people authorized to conduct transactions on that account on file. Anyone with an authorized signature on file at the bank will be able to write checks/make deposits/etc... from that account.

In my family business, three people are authorized to sign for transactions on thier own. In a non-profit group I am involved with, we have five board members that are authorized. However, on that account, there must be two signatures on every check as a measure of security.

You can also get debit cards for everyone that operate from the business account, which is nice because then you don't have to remember to carry the business check book with you all the time.

[cory1848]

I personally think that partnerships are a terrible idea. I have rarely seen one that worked out in the long term. It usually ends up that one person is doing more work or putting in more personal time/money/gear and both get payed the same, or one thinks that they are doing all the work (even if they aren't) and that they should get paid more than the other person. I've seen people that were best friends and worked together for years start up a business together. They split up after a couple years and still don't talk, and that was five years ago. And they actually ran a very succesful business. The resentment got terrible.

Then there is the liability factor. Let's say your partner gets injured, what happens then? Do you have to buy them out? Or your partner's 16 year old daughter gets in a car accident and kills someone and they get sued for everything they have. LLC's and S-Corps don't protect people nearly as much as they think.

I actually have refused to become a partner in my family's business. It keeps everything much cleaner if there is one owner/boss, and everyone else is an employee. I am just a well payed employee.

I see what your saying, they say never go into business with your friends... It has worked for me in the past though...but it was mainly for record keeping as there wasnt much profit.


You should have a business account (whether or not it is a partnership) and run every bit of income/expense through that account. Your customers would write checks to that account (made out to xyz photography), and any expenses (camera gear/advertising/printing/etc...) would come out of that account. Never use that account for any type of personal expense. This makes it very easy to make up profit/loss statements. You would write paychecks to yourselves from this account also. Running everything that is business related through this account makes tax time much easier.

If you are concerned about being able to cash a check written to "xyz photography", the bank will have all of the people authorized to conduct transactions on that account on file. Anyone with an authorized signature on file at the bank will be able to write checks/make deposits/etc... from that account.

In my family business, three people are authorized to sign for transactions on thier own. In a non-profit group I am involved with, we have five board members that are authorized. However, on that account, there must be two signatures on every check as a measure of security.

You can also get debit cards for everyone that operate from the business account, which is nice because then you don't have to remember to carry the business check book with you all the time.

I understand, but in this case, two people are operating under the same business name... I was trying to point out having two difference business entities under the same name and the pitfalls of that..