do you guys register your photography business as a proprietor or INc ?

do you guys register your photography business as a proprietor or INc ?

Sole Prop here.

Dave

Some states don't require to register DBA

DBA or fictitious name have little or nothing to do with your business structure... They are a separate issue.

In Canada it might be different, so you really need to check locally....

In the US in most cases you have the following choices:

1. Sole proprietor (or partnership if more than one person is involved)... Least expensive and simplest to set up and operate. Does not protect the owner from lawsuits.

2. Limited Liability Company (LLC) or S-Corporation.... More costly to set up and a little more involved to operate. Insulates the owner(s) from some liability.

3. Corporation.... The most costly and most complex to establish. Provides the most separation of the owner(s) personal holdings from the business entity.

There are also tax and other considerations. Talks to a knowledgeable attorney locally to get the best advice regarding your particular situation.

I'm currently a sole proprietor, but considering going to an LLC.

amfoto1 wrote in post #11438770
DBA or fictitious name have little or nothing to do with your business structure... They are a separate issue.

In Canada it might be different, so you really need to check locally....

In the US in most cases you have the following choices:

1. Sole proprietor (or partnership if more than one person is involved)... Least expensive and simplest to set up and operate. Does not protect the owner from lawsuits.

2. Limited Liability Company (LLC) or S-Corporation.... More costly to set up and a little more involved to operate. Insulates the owner(s) from some liability.

Maybe, depending on your actual business practices. A lawyer in your state will tell you how tightly you need to structure your business in your state to protect yourself from liability even as an LLC.

Maybe, depending on your actual business practices. A lawyer in your state will tell you how tightly you need to structure your business in your state to protect yourself from liability even as a corporation.

Depending on how aggressively courts in your state attempt to "pierce the veil" protecting small LLCs and corporations from liability, it may or may not be worth it to incorporate if that's your only reason for doing so. In many cases, it's better for a small business to be a well-insured sole proprietorship than to incorporate.

A lawyer and a CPA can tell you for sure in your case.

LLC here....I have a DBA pointing to my parent company, the LLC....Probably could have done it as a Sole Proprietorship, but went the LLC route for 200.00 and some paperwork to the State.

The only real difference (other than the 200.00 cost) is the protection from being sued and loosing your personal property and you will spend more on a CPA doing your taxes every year.

At least that is what I have seen.

Steve

I'm still a sole proprietor. I wanted to do LLC but my mom owns a business and said LLC really isn't worth it until you get employees and because my aunt owned a salon and being an LLC did not protect her from getting sued.

So now I'm wondering how much it really protects. I've been trying to find more info. My accountant tells me one thing and my mom tells me another. Then a friend who just started photography became an LLC and her accountant is saying otherwise. I'm lost!

shotsbysheryl wrote in post #11568818
I'm still a sole proprietor. I wanted to do LLC but my mom owns a business and said LLC really isn't worth it until you get employees and because my aunt owned a salon and being an LLC did not protect her from getting sued.

So now I'm wondering how much it really protects. I've been trying to find more info. My accountant tells me one thing and my mom tells me another. Then a friend who just started photography became an LLC and her accountant is saying otherwise. I'm lost!

You should be asking a lawyer about legal protection. IANAL, but the common rule is that you need insurance, regardless of what type of business entity you have. An uninsured business is a false front, if you're expecting legal protection.

Dave

Thanks! I really want to do something to protect myself and be a legitimate business. I've been shooting for 7 years but didn't start making money until last year. So that was the first time I filed taxes. I'm going to research and talk to a lawyer and some others and get feedback. I want to be legitimate and not give anyone any reason to doubt me. Plus I want to be protected in case things go wrong. I'm working on getting liability insurance this week.

Just filling out paperwork with the state isn't enough to keep people protected with incorporating, which is where some people go wrong. You need to have a lawyer draw up all the paperwork to be properly covered as well as having insurance to cover your assets in case of a lawsuit.

shotsbysheryl wrote in post #11568818
I'm still a sole proprietor. I wanted to do LLC but my mom owns a business and said LLC really isn't worth it until you get employees and because my aunt owned a salon and being an LLC did not protect her from getting sued.

So now I'm wondering how much it really protects. I've been trying to find more info. My accountant tells me one thing and my mom tells me another. Then a friend who just started photography became an LLC and her accountant is saying otherwise. I'm lost!

You've just seen the evidence of what I said above:

Depending on how aggressively courts in your state attempt to "pierce the veil" protecting small LLCs and corporations from liability, it may or may not be worth it to incorporate if that's your only reason for doing so. In many cases, it's better for a small business to be a well-insured sole proprietorship than to incorporate.

For legal liability information, talk to a lawyer not an account, btw.

Ok cool. Thanks!!!! I will find someone to talk to.

My photography services fall under my companies LLC - I don't do photography as main income, but since I lend multimedia services, it goes nicely in line with the LLC company description to start with.

Consult your accountant to see what filing will be most beneficial for you. s-corps work out good as to LLC's..

it's been explained to me that an LLC is the same as a sole proprietor with business insurance.