After years of pursuing photography as an avid hobbyist, I finally decided to take the plunge and become a professional. I already owned all the necessary camera bodies, lenses, flashes, and other assorted equipment, and having my own business meant that future photography purchases would be tax deductible. A smart decision, right?

The short answer, at least for me, was “yes”. However, the long answer was, “It depends on how much time you want to spend searching and researching the requirements.”

Fortunately for you, I’ve already done it in North Carolina and am willing to share the results (at least for this state!).

For the purposes of this article, I assume the following things to be true:

1. You will be operating this business in the state of North Carolina.

2. You already have the photography experience to qualify as a professional photographer (that’s another article on its own).

3. You’ve done the research to determine if you have the time, energy, potential customer base, and business plan to ensure your new venture is successful (again, this topic is another article on its own).

The first step was to determine what type of business entity it would be. After doing a lot of research online, I was a bit confused, until a CPA explained it to me: There is a difference between your LEGAL status and your TAX status. He recommended that my photography business be an LLC (limited liability company), but file taxes as a sole proprietor.

As with all the different options, there are positives and negatives to each option. LLC status would protect me from personal liability in the event of a lawsuit, which was important to me. The paperwork is very easy to prepare and submit, which is also good because I wanted to take care of everything myself.

Filing taxes as a sole proprietor would be very simple: just attach a Schedule C to my personal tax return each year. Although this filing status is fairly easy, sole proprietors pay a slightly higher tax rate than S-Corporations.

However, filing as an S-Corp means more paperwork and filing quarterly taxes instead of a Schedule C with my annual return. I wasn’t interested in that much paperwork, so sole proprietor status is fine with me. If my business starts making so much money that I’m interested in a lower tax rate, I can always change my status to S-Corp.

Now that I have determined my legal status and tax status, I had to file my LLC in the state of North Carolina. This involves sending a check for $125 to the Secretary of State, along with the Articles of Organization, which can be downloaded and completed from their website.

It takes 7-10 days for your status to be confirmed, although if you include a note and your email address it will be emailed to you, saving you a few days.

The state of North Carolina considers photographers to be one of those lucky professions that requires a state privilege license. This is an annual license issued to the person, not the business, so if you end up working for a different photography business in the future, you don’t need to get a second license that year. A privilege license costs $200, from the North Carolina Revenue Office. This must be done in person, but the Department of Revenue has offices throughout the state, so there is probably one in a city near you.

While I was there, I also received a state tax ID. This is (hopefully) free, and it will come in handy because, armed with this important number, I will no longer have to pay sales tax when I buy items for my business (assuming I buy from a North Carolina supplier; obviously you don’t I pay no sales tax when I buy from an out-of-state supplier, like when I buy glasses online).

The friendly and helpful North Carolina Revenue Clerk explained to me that two forms must be mailed to the North Carolina Revenue Office each quarter. One is a form that explains what your income was for the quarter and how much tax you charged your customers. You will need to include a check for the amount of the tax. The other form shows what equipment you bought for your business that quarter and didn’t pay taxes. You’ll need to include a check for 1% of the total (well, at least it’s lower than paying full retail tax on your purchases). This includes everything from cameras and lenses to printers, computers, paper, ink cartridges, etc.

Collecting sales tax from my customers is a bit confusing in North Carolina. The law is unclear and lawsuits filed in state courts have had conflicting results. It sounds like you don’t need to charge sales tax on services as session fees, UNLESS the client ends up buying copies of the session. Of course, you always hope and assume that the customer will buy copies, but you never know for sure. To be on the safe side, you should go ahead and collect sales tax on the session fees from them up front, assuming they’ll be buying copies.

You forever need to collect sales tax on tangible goods sold. Therefore, any print, album, or other product you sell to your customers should always include sales tax.

The tax rate that applies depends on where the customer took possession of the goods. If the customer lives in Gaston County and asks me to mail the prints, the Gaston County rate applies. If the bride chooses to stop by my home in Charlotte for a personal pick up, the Mecklenburg County rate applies.

Taxes were by far the most complicated part of the business creation process. Fortunately, the clerks at the North Carolina revenue office were very helpful, giving me several “cheat sheets,” sample forms, and (best of all) their phone numbers to call if I had questions.

If you want your North Carolina State Tax ID to be in your business name, rather than your own name, you’ll need an IRS Employer Identification Number. I was initially confused by this, because I wasn’t planning on hiring anyone but myself, but it turns out that the Employer Identification Number has nothing to do with anyone’s employment. Luckily, it was free and easily handled over the phone while I waited in the lobby of the state revenue office.

Now there is the matter of where you live. I am a resident of Charlotte, so I am in Mecklenburg County. Fortunately, Mecklenburg County recognizes the State Privilege License, so I did not have to obtain an additional business license from the County.

However, I was required to obtain a Habitual Occupancy Permit from the Zoning Office. This is a one-time permit that allows me to work from home. This is a lifetime permit; however, it only applies to this particular address. If I decide to move to another house in a few years, I will have to get a new permit. It costs $125.

Next, I needed a business checking account. I went straight to Wachovia as they already handle our personal bank accounts and I wanted everything in one place for convenience. Wachovia needed copies of my privilege license, my EIN, and my state tax ID, as well as the normal documents for a new account like my driver’s license. In about a week, I had received my debit card and account checks. This is highly recommended by the CPA I visited, to keep business and personal expenses separate.

The last thing he needed was business insurance. This is recommended in addition to any general liability or homeowners coverage you already have. It’s not too expensive (less than $200 per year), so go ahead and get it. Any insurance agent will be able to go over the options with you. Commercial insurance will not only cover your equipment in case any of those expensive lenses or cameras are damaged, but it will also help you in case a guest trips over one of your light stands at a wedding, for example.

A few side notes: If your business is an LLC, you are legally required to have the initials “LLC” or the words “Limited Liability Company” in your business name. This makes it clear to all potential clients and clients that you are an LLC. Also, if you don’t keep your business and personal expenses separate, you lose the protection of an LLC (meaning your personal assets are vulnerable in the event of a lawsuit). DON’T RISK THIS – Keep everything well documented and separate!

Best of luck with your new business venture! I recommend visiting the North Carolina state business development website and calling their hotline; I got a lot of advice that the CPA didn’t mention, and it was free! Fortunately, there is plenty of support out there for people starting their own businesses. It’s free and these people know what they’re talking about. Seize it!

RELATED ARTICLES

Do Pilates Classes Require Pre-Registration?

Pilates Classes Require Pre-Registration All clients are required to take a one on one taster session and group class assessment before joining classes. The studio is equipped with Balanced Body equipment including Reformers, Trapeze Tables and Wundachair. All virtual fitness classes, including Spin and Pilates,…

割引キッチン用品のAliExpressクーポン

割引キッチン用品 2010 年に設立され、オンライン ショッピングの世界に旋風を巻き起こしている Ali Express は、世界中の小規模販売者が自社の製品を消費者に直接販売するための市場です。 中古の iPhone から人毛ウィッグまであらゆるものを取り揃えており、高品質の商品を手頃な価格で探しているバーゲンハンターにとって頼りになる場所です。 聞いたことのない販売者から購入することに不安を感じる人もいるかもしれませんが、AliExpress にはあなたのお金と個人情報を保護するための強力な購入者保護ポリシーがあるので、ご安心ください。 すべての購入には保証が付いており、まれに製品に欠陥がある場合は、受領後 15 日以内に返品することができます。 配送、返品、または特定の商品についてご質問がある場合は、よくある質問セクションを確認するか、販売者に直接お問い合わせください。 Glamour は、このページのリンクを介して行われた購入から手数料を受け取ることがあります。 価格と在庫状況は変更される場合があります。 このコンテンツは Yahoo のサードパーティ パートナーによって作成されています。 アリエクスプレスクーポン ラマダンのごちそうの準備に関しては、必要なキッチン用品をすべて買いだめすることが重要です。 手頃な価格の鍋、フライパン、焦げ付き防止調理器具セットを幅広く取り揃えているので、予算を抑えながら家族全員で宴会を開くことができます。 見事な皿やボウルから機能的なウォーターピッチャーやグラスまで、イフタールやスフールの完璧な雰囲気を演出するさまざまなエレガントな食器も見つかります。 割引キッチン用品のAliExpressクーポン AliExpress でさらに低予算で買い物をしたい場合は、必ずサイトのロイヤルティ プログラムにサインアップしてください。 わずか 40 ドルで、無料配送コードや会員限定クーポンなど、さまざまな特典をお楽しみいただけます。 AliExpress コインを使用して次回の購入を節約したり、無料のギフトと交換したりすることもできます。 ストアクーポンはAliExpressの販売者によって直接提供され、通常はそれぞれのストア内のどの商品にも使用できます。 これらのクーポンには最低購入要件と有効期限が設定されていることが多く、買い物客が割引を利用するために一定の期間内に大量の注文をすることを奨励しています。 一方、セレクトクーポンはAliExpressが提供しており、幅広い販売者の商品に適用できます。 これらのクーポンは通常、製品タイプまたは店舗カテゴリごとに分類されており、買い物客は目的の購入に合わせたクーポンを参照して選択できます。 AliExpress クーポンを使用するには、商品をバスケットに追加してチェックアウトに進むだけです。 ページの下部近くに「プロモーション コード」ボックスが表示され、そこにバウチャー番号を入力できます。 コードを入力したら、[適用]…

할인된 유아용품에 대한 Ali 프로모션 코드가 있습니까?

Ali 프로모션 코드가 있습니까 새로운 부모가 되면 아기를 행복하고 건강하게 유지하는 데 필요한 아기 용품을 구입하는 데 비용이 많이 들 수 있습니다. 하지만 잘 살펴보면 많은 비용을 들이지 않고도 필요한 물건을 얻을 수 있는 방법이 많이 있습니다. 한 가지 방법은 아기 용품에 쿠폰을 사용하는 것입니다.…

솔루션 배포 전술로 카지노 역량을 강화하세요

카지노 역량을 강화하세요 카지노 사업에서 제휴사를 행복하게 유지하려면 높은 수수료율 이상의 것이 필요합니다. 이를 위해서는 파트너의 요구 사항, 열망, 실질적인 우려 사항을 해결하는 전체적인 접근 방식이 필요합니다. 다행히도 기술이 도움을 드리고 있습니다. API 통합은 경쟁이 치열한 환경에서 확장하고 성공할 수 있는 간소화된 데이터 기반 카지노…

Leave a Reply

Your email address will not be published. Required fields are marked *