Setup LLC or not for freelance or starting out photographer

Hi,

I know it is best to setup a LLC to protect you from any mishaps. For those freelance or starting photographer, I want to know if you setup a LLC.

Thanks

Not always best depending on what state you are in and what type of photography you are doing. For the basic portrait/wedding shooting, starting out I would suggest sole proprietorship AND insurance. Then move to a different class if needed as you build your business. Need to research your state laws, consult with a CPA as well.

I've been getting paid as a part-time professional photographer for 10 years now and have not setup an LLC.

I'm also selective about who I work with, to limit my own liability.

JacobPhoto wrote in post #16804844
I've been getting paid as a part-time professional photographer for 10 years now and have not setup an LLC.

I'm also selective about who I work with, to limit my own liability.

Similar to my situation. I started with a partner so we formed a LLC partnership. Partner since left the business and I am now a single member LLC. It is cheap enough here in Florida so I just continued with that, otherwise I would have started with a SP. If I had employees, things would be a little different.

I am a single member LLC.

It helps in some forms separating the business from personal.

But with that said the concept that it is going to protect you from some sort of lawsuit or "mishap" just for the sake of being an entity is more or less a myth. If someones gonna sue you they are gonna sue you. In addition, a judge can let them go after you if he feels you are hiding behind "veils" of corporations. (my attorney explained this to me b/c he just saw it happen where a judge let them hit the owners personal assets).

Get your ducks in a row in all areas (insurance, etc).

Naturally you should check with your accountant an attorney. But that is how it was explained to me. I believe an LLC is the way to go personally. But if your only reason for doing so is the notion it will "protect you from lawsuits" I wound have high expectations of that, esp if you are a sole member.

I think having an LLC is one step towards proving you are conducting a business as opposed to trying to write off a hobby.
It may not be a legal requirement, but I suspect it would count for a lot in the mind of the IRS agent auditing you.

jwhite65 wrote in post #16807249
I think having an LLC is one step towards proving you are conducting a business as opposed to trying to write off a hobby.
It may not be a legal requirement, but I suspect it would count for a lot in the mind of the IRS agent auditing you.

Well considering the IRS doesn't recognize LLC's as a business entity, I am not sure how one could come to that conclusion. LLC's are a state entity and LLC's are considered either a sole prop or general partnership (if more than one member) in the IRS's view.

cory1848 wrote in post #16807302
Well considering the IRS doesn't recognize LLC's as a business entity, I am not sure how one could come to that conclusion. LLC's are a state entity and LLC's are considered either a sole prop or general partnership (if more than one member) in the IRS's view.

Isn't this only in certain states?

KeenanRIVALS wrote in post #16807647
Isn't this only in certain states?

no, the IRS doesn't recognize LLC's in any (and all) states

I think you would be better served to simply have a solid liability insurance with a large umbrella ($1M) over everything. If you have some sort of mishap that even gets close to 5% of that amount....you are seriously doing it wrong.

I see no benefit for a sole proprietor starting an LLC. It doesn't serve a purpose.