How to Make Your Photography 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 view to building successful magazine style photo shoots . We talk design and concept , fashion and style , tech , social media and , of course , business Plus . So much more , including how to avoid common photography pitfalls .

You'll also meet some special guests who work behind the camera and in front of the lens . Whether you're an aspiring photographer , a portrait photographer thinking about starting your own business , or you just have an interest in what it takes to plan and 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 this week's episode . We're going to start with the very basics of turning your photography into a business .

First , we're going to talk about the process of creating and registering your business , and then we're going to talk about the benefits of making your photography into a business and , for the sake of simplicity , I'm just going to talk about what you've probably often heard referred to as an LLC . That's our starting point .

First , we're going to talk about an LLC in general terms and then an LLC specific to photography . So an LLC , which stands for a limited liability company .

It's actually a type of business entity , it's a business structure , and that structure provides protection for the owners of the business , whether the owners are partnerships between one or two or three people or more , I believe or , as in the case with most photographers , sole proprietorship or entrepreneurship . So what does this mean ? What is an LLC ?

What is a limited liability company ? As an LLC , your personal assets , your home , your car , your savings , your investments they're generally protected from your company's debts and your company's liabilities . In other words , in the event of financial troubles or legal issues , your personal assets cannot be touched . Your business exists independent of you as a person .

Your assets , your home , your car , your savings , your investments cannot be touched and are not at risk . Llcs are popular among small businesses and that's because , whether you're a solo entrepreneur or you have a partnership with someone , forming an LLC is very easy to do . It essentially consists of simply filling out some online forms .

It's minimal amount of work and you usually only have to pay a small fee . It does require at least as far as I know annual registration . So I live in New Jersey and I'm required to file or renew my status as an LLC annually , and that costs me $125 every year . I first registered in 2016 . It has been the same price ever since .

Now , what's the big deal about being an LLC ? Well , there are actually quite a few , a few major points that you should be aware of and you should 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 about the first benefit to being an LLC or creating an LLC , and that is the limited liability that is , separating your personal assets from your business assets or from your business , I should say and this protects your personal assets .

But here's the thing you need to understand that , while LLC status provides liability protection , certain actions on the part of the business owner things like making personal guarantees on loans or engaging in illegal activities can restrict the liability of your company and consequently , expose the owner of the company or the partners .

It could put their personal assets at risk . Short term , you have to operate your business on the up and up . It's important to understand that regulations and requirements of forming and operating an LLC in each state or jurisdiction if you're outside of the US differs .

So , state to state , you need to look at what what the requirement is in that state and what it takes to maintain that status as an LLC . So , whether it's a state or US jurisdiction , you need to know what the laws are in that given area . If you are outside of the United States , you need to look at what your location requires .

The second major benefit of filing as an LLC is taxation . We're going to talk about this in depth a bit later , but as an LLC , you can choose to be taxed as a solo entrepreneur , also referred to as a sole proprietorship , or as a partnership if there's more than one owner , or you can be taxed as a corporation .

It all depends on what your business structure is and what is the best way to optimize your tax situation based on your needs , circumstances and the structure of your business . And then the third major benefit of registering as a business and as an LLC is that you have the ability to claim business expenses on your income tax return .

But in order to do this , you've got to be really organized . I would say it's not just a matter of being organized . You really need to be disciplined in finding a way to organize and to track your spending , particularly your spending related to photography or related to your business .

You have to treat your business like it's a business and not like it's a hobby . If you're used to having an accountant do your taxes , you may want to find and you may want to change that and find an accountant who specializes in taxation for artists . And there are even accountants who specialize in taxation for photographers .

Now , I know all this sounds a little complicated and kind of heavy-handed and you may be sitting there listening to this thing . Nah , I'm just doing this for the fun . But here are a couple of things to consider . The reality is that stuff happens right . You have a client you get along with .

A client may even be a friend , may even be a family member , and You're photographing them . You're photographing I don't know your second cousin's first communion or something , and Uncle Dave trips over your camera bag or I don't know . He's tripping and he goes to Brace himself and he does it by holding on to your tripod or something and he gets injured .

Let's say you may have had a good relationship relationship with him before , but he might blame you for his injury . He may hold you personally responsible . So think about things like pain , suffering , emotional distress and all the other terms that you hear about when people are looking for money , and Do you really want to take the chance ?

Do you really want to take the chance that someone may get injured and may hold you responsible and the only thing you're gonna have are your personal assets that may get wiped out , or a portion of them , or you may have to pay for somebody's Hospitalization or something like that ? So Do you really want to take that chance ?

If you're doing photography photography for fun and you're getting paid , you're making undeclared income and that's a problem for your favorite uncle Uncle Sam , also known as the IRS and that's the second big point to Becoming an LLC and making your photography into a business . Your expenses are your expenses as a photography business or your expenses as a business .

Your expenses will will outweigh your income for years before you're profitable . It is so rare For a new business to become profitable . You're lucky if , after five years , your head is above water .

It's not an even a matter of not paying the government their share when it comes to the the you know a little bit of money that you make in your first couple of years as a business . What's really important is that you can increase your tax refund by claiming your business expenses , particularly if you are a photographer .

If you're not an LLC and you're not filing as a business when you do your taxes , You're not even leaving money on the table . You're actually just throwing money away .

Let me repeat that if you are a business and you have not registered as a business right , you have not filed as a business and because you haven't filed , you cannot claim your business expenses . You cannot claim your business expenses when you do your taxes . You're not just Leaving money on the table .

Leaving money on the table is you file your business expenses but you forgot to add in that you bought a laptop specifically for your business , right ? That's . That's leaving money on the table . If you're a business and you know if you operate as A business or if you should operate as a business , but you choose not to , you're throwing money away .

You're not even leaving it on the table . You're just throwing it away and walking away . So pretty much that's our discussion in general terms , and now we're gonna get to the specifics of photography . So how do you register your business ? How do you register your photography as a business ? It's actually quite simple . First , come up with a name .

You may want to do an internet search to make sure the name you choose is unique . Some states in fact have business naming rules , so you may want to make sure , check with you know your local government or check regulations online for your state about naming your business .

Here's a tip Most photographers use their name in their business without consideration that one day they may want to sell the business . If my name is Mary Jones and I'm Mary Jones photography , and Five , ten , fifteen years from now , I want to sell my photography business , how do I sell something that has my name on it , right ?

So that's something to consider when you're choosing the name of your photography business , because that could be a problem years down the road again when you choose when and if you choose to sell your business . Just something to think about . Also , know that you do not have to include the term LLC in the name of your company .

So officially in New Jersey , I am registered as headshot NJ LLC , but on documents , on business cards , it just says headshot NJ , so the LLC part does not have to be included in the name of your company . So after you've chosen a name , here's what you need to do .

You need to find your state's business filing website , and that's just as Easy as googling how to file a business in Texas , for example . Here in New Jersey , we do business dot njgov and From there I Navigate , and it's the same with most states . You navigate through completing these online forms that are relatively short .

You're completing forms with information about your business , who owns it , who manages it and the specifics of the type of work that you do , and that's because every specialty , for example photography , has a code or something called a sequence number , and that number is associated specifically with your business .

You also have to provide contact information for the person who will receive legal and official documents for your business , and usually , if you're a photographer , there's no one else to do that stuff other than you .

If you're a two-person photography business , you may be asked to complete an operating agreement , and that agreement clarifies the roles of each partner . Once you've completed all of your information and paid your fee , you get something called an EIN number .

Ein stands for employer identification number and your EIN number is your unique identifier for your photography business . Every business that is registered with a state has an EIN number , an employer identification number .

One thing in addition to doing this Within your state , doing it at a state level , you also have to check with your local municipality to see if Permits or licenses are required to Sustain or to have For your business some places . You have to have like a little certificate and has to be shown in a public area in your business .

So these are just some nitty gritty things you need to simply ask about and comply with . All right , please , please , please , do not make the mistake of thinking that because you do not have a brick and mortar place to do photography , like a studio or a designated location for your photography work , that you Should not file your business with your state .

It doesn't matter if you run your photography business out of the trunk of your car , the corner of your apartment , your mother's basement , or if you simply rent space to space or you simply photograph people in the park . You should still file your business to receive the tax benefits .

As I said earlier , here in New Jersey , I'm required to submit an annual report , which is essentially my registration renewal , and that cost me a hundred twenty five dollars every year . Obviously , the amount that you have to pay will vary state to state and Will also vary depending on where you live if 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 you run your photography business like a true business .

You may not agree with all of them , but I believe if you want to be a pro and you want potential clients to see you as a pro , there are certain things you need to have in order . First , get business insurance , or specifically photography insurance , because there is such a thing .

Remember that scenario a little while ago about the person at the you know first communion who trips . Well , that client trips . Or you know somebody attending the event trips and they sustain an injury . Again , I'm sure you don't want to pay their ER bill or their hospital bills . You don't want to pay that out of pocket .

So you need to have insurance that covers you as a business . Get your photography business insurance , the other reason you need business insurance is for loss or damages to your camera , your lenses or other photography equipment . And , lastly , if you're asked to photograph an event at a venue , the venue may require you to show proof of insurance .

I've had to show proof at least four times . It's wonderful when you know you're filling out the form . As the photographer for an event , you get the .

Usually , what happens is the form is sent to the person who's running the event and they can forward it to you , or or the person at the venue will get your email address from the person running the event and that contact person will introduce themselves and say , hey , we need for you to fill this out , and one of the things you need to fill out is proof

of insurance . Like you have to provide them with a copy . So you know it's one thing to think , oh , you're gonna go photograph a reception , or you're gonna go and photograph a sweet 16 , or you're Photographing an event for a company , and then , a few days before , somebody says , oh , we need a copy of your insurance and you don't have it .

That is definitely something that you Should have as a photographer . Here's another thing that you need to do if you want to be considered a real business by your potential clients , you need to separate your finances and buy that , and by that , by that , I mean separate your business finances from your personal finances .

Your business should have its own accounts and , as much as possible , use your business's debit or credit card to conduct business transactions .

You need to find an app that allows you to easily indicate that your purchases or transactions were business related and when you conduct a transaction that results in getting a receipt , put that receipt and all other photography related receipts in one place and , as a matter of fact , go one step further and , either on an app or using different folders Folders be

it digital or physical folders Categorize your spending . Categorize your business spending Equipment versus education , versus travel , versus whatever and this will make tax time so much easier for you .

If you really want to make your business , your business financial life , easier , choose one day of the week in which you sit down and you go through all of your past weeks photography related finances and you categorize them . I know it sounds like an irritation and it can , but if you do it every week , it's really , really easy .

You get fast at it and when tax time comes around , you have to 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 a real business to potential clients is using your business name . Just put that . Whatever your business name is , you put it to use .

If you're going to build a website or have one built for you , use your business name , and this is actually something you should think about even before you file the LLC or file as an LLC . What is your business name ?

Your email , your Instagram , your Facebook and all of your other social media accounts should be named accordingly , so that clients potential clients can find you in all places , all sites and on whatever social media platform you happen to be on . My official business name , as I said before , is HeadshotNJ . My email is mariabe at headshotnjcom .

My Instagram should be at headshotnj , but that name was already taken . But you get the gist of it . Whatever your name is , it should be the same , be it email or social media .

Next , in this world of direct messaging , it seems that we no longer use phones for service-based businesses , but if , by chance , you do , I suggest you get a dedicated phone line and the best way to avoid having to purchase a second phone or having to pay for another line is simply go to Google Voice and sign up with no charge to have a dedicated business

phone number . All calls that go to that number will then be forwarded to your personal phone or to your phone number , but you will then have a dedicated business phone or business phone number for your clients . This helps to make sure you appear as a legitimate business with a dedicated business phone number .

Next , if you want to appear professional , conduct your financial transactions professionally through some type of service such as PayPal or Stripe or something that lets clients know you accept debit or credit or what have you . Please stop doing business using Cash App . It's just , it's not professional .

I use Cash App too , but usually I use it like my friends and I are paying for something and you want to send them the money , so that you don't have a bunch of people all paying for one thing , so one person pays and the rest of us we send them our share of that payment . Cash App for business just doesn't look good .

It's like saying , hey , I'm making money this way , but I really don't want anyone to know about it . Through PayPal , stripe , clover or whatever else you use , you can send your clients . You can send potential clients quotes . Those quotes can become invoices if they agree to the quote , and you can send them receipts for their payments .

Operate your business like a business . If you want to go one step further , purchase or subscribe to a CRM , a client relations management software platform that also allows you to send quotes , invoices and receipts .

But in addition , you have an ongoing record of all of your clients , of all of your leads , and you have the ability to develop standardized systems to automate emails with reminders and to minimize the going back and forth that happens between photographer and client as you try to do things like set up a date for a photo session .

You can send them proposals , you can send them a list of dates and you can just take care of things . That way , you don't have to go back and forth doing email tags .

Your client gets a portal where all of their documents if you've done , if you do contracts with them what you should , if you do contracts if you they will always have access to their receipts from payments that they've made to you . It's ultra professional .

However , I do have to say that CRM's client relation management software can be a little bit on the pricey side . You can pay for them upfront , which is usually a little bit less expensive , or you can pay for them monthly If that works out better for you financially .

But just know , as with most things these days , if you make a monthly payment , when you multiply it by 12 , you're gonna find you're actually paying out more than if you can possibly make one payment for an entire year upfront .

I would advise you to only use CRM's again client relation management software If you have a steady flow of clients because , like I said , the subscriptions can be pricey .

The convenience , however , is definitely worth the money if you can afford it , but it's only valuable if you have a constant flow or you tend to have consistent bookings for your photography business . So I use Studio Ninja . I tried it , I liked it . I've used it for about three , I think three , years now .

I've tried some of the others before settling on Studio Ninja . I think I've tried some of the others before settling on Studio Ninja . I tried 17 hats . I tried Tavo , I don't know . There are a bunch of them out there . There are a lot of them out there .

There are some that are very small it's a sprout , I don't remember but there are some that are pretty small and you think that kind of gives you the better chance for one-on-one service .

If you have questions about what you're doing , if you're interested in trying one of these CRMs , what I suggest is you look into them when they have no obligation trials , or you can sign up , but it's free for the first seven days or something , and just make sure by day five or day six that if you don't want it , you sign off of it so that you don't

end up paying that first month's fee if it's not something that works for you . But go down the list of CRMs until you find what really works for you , what's manageable , what you could customize to your particular business . And again , don't use this if you don't have the client's support to really benefit from this .

If you're getting one or two clients a month or something like that , like one client a week , don't . This is not for you . This is for people who have like a constant flow of clients and they need to track down and make sure they're well organized in terms of what they've sent to which client , just so you know .

No matter which one you choose , it takes some digging to find the one that's right for you and there tends to be a learning curve , even after you find the one you like best . My advice just stick to it . Once you get it , you get it and it becomes pretty fluid and easy to manipulate as needed .

Using a CRM makes organizing your clients , your payments , your calendar and almost everything else about your photography business crystal clear . Now , just a moment ago , or just for a moment , I wanna get back to what many people consider the true benefit of being an LLC , and that's the tax benefit .

The following are a list of categories that I've put together of various tax deductions and various expenses for photographers that help lower your taxable income .

If you do not take advantage I know I am preaching , I'm sorry , I said it before if you are a photographer and you do not file as a bill and you do not file as a business and you do not conduct your photography like a business , you are throwing money away .

Here are some of the things that demonstrate that , because these are things that you can list as business expenses when you do your taxes . If you operate a business , if you operate a photography business , if you have filed as an LLC okay , things that are deductible , things that are expensive . First , equipment and gear .

You can deduct the cost of cameras , lenses , tripods , lighting equipment , computers and other photography related equipment . And you know what I just listed out . There is the top of the iceberg , right , because look at how much stuff you need .

In the past year alone , I've purchased clamps , different types of clamps , different types of holders , I've purchased cold shoes , I've purchased what do you call it ? Purchased new round head speed lights .

You know you don't think you've purchased a whole bunch of stuff , but when you sit and you look , you really do purchase a lot of stuff to support your photography business . So treat it like a business All right . So that's number one equipment and gear . Number two you can deduct for business expenses .

Business expenses include costs associated with running your photography business , such as , when you rent a studio , the utilities that support that studio , such as heat and electricity , if you happen to pay those . The cost of your business insurance is deductible . Your office supplies and your internet expenses are deductible .

Again , this is just the tip of the iceberg . These are just examples . Number three your travel expenses . If you travel for photography assignments , you can deduct expenses such as transportation , transportation , lodging , meals and even part of your vehicle expenses if you use your car for business purposes . Number four marketing and promotion .

You can deduct expenses related to advertising , to your website development , to your business cards . You can deduct for online marketing and promotional material , such as the samples you order from your lab samples for wall art , samples for prints , samples for albums tax deductible business expenses . Number five professional fees .

You can deduct the fees paid to assistants that help you in your studio or the person who you pay to help you lug stuff into a studio you've rented your retoucher , your second shooter if you have a wedding or a big event , the models that you pay to pose for you , to do your test lighting or to just try out a new technique or something .

Your stylist and any other professional you hire for your photography and for your photography projects . Don't forget your fee to photography associations . That may come up in another category . Number six software and subscriptions . You can deduct the cost of photo editing software Lightroom , photoshop , capture One , alien Skin or whatever it's called now .

All of these are deductible . Number seven education and training . You can deduct expenses related to photography workshops , courses , seminars and other educational resources that you use to help you improve your photography business , in particular , all of those educational tutorials that you have paid for , downloaded and haven't watched yet .

Tax deductible Number eight your home office deduction . If you use a portion of your home , it has to be designated for your photography business . You cannot go in there . That is my photography area of the house . It has to be specific .

If you use a portion of your home exclusively for your photography business , you may be able to deduct a portion of your home related expenses such as rent , mortgage , mortgage interest , property taxes and utilities If you have a designated area for photography within your home . Number nine professional professional memberships and licenses .

You can deduct fees paid for memberships such as PPA or other memberships and professional photography associations and any necessary licenses .

Like I happened to mention before that , some places require you to have a license or something displayed saying something about who you are , what you do and that your state has essentially designated you to do whatever you're doing . The cost of that is deductible .

Repairs and maintenance you can deduct the cost associated with maintaining and repairing your photography equipment and your studio space . So , for example , there's a fan in my studio , there's a ceiling fan and it stopped working and I have to get an electrician to come and take a look at it Tax deductible .

Lastly and this one does not apply to a lot of people , but if you have a thriving and I do mean a thriving photography business and you are able to pay for your healthcare insurance based on what you make as a photographer , the cost of your health insurance premiums are also deductible . And , ladies and gentlemen , this is just the tip of the iceberg .

Truly , if you do photography as a business , you can claim these and other deductions , including your annual fee to register as an LLC . You can claim all of these when you do your income tax . So is it worth it to file and be a business , be registered as a business , definitely .

But again and I'm sure , like many things , you guys are tired of hearing me say , say this your business has to be treated like a business . So you see , it is worth it , it is worth the time and the effort , but just remember , you have to treat your photography as a business . You need a dedicated bank account .

You need to use invoices , you need to use quotes , invoices and receipts . You need to limit your use of cash app and remember that you don't need a brick and mortar building to take advantage of business tax advantages .

You can operate your business on the road , on the side of the road , out of your car , in a corner of your home , as long as you operate your photography business like a business .

So it's very important we're coming to the end here but it's very important that you comply with tax laws and regulations , which can change over time , and it's rare that people are aware of these changes . It's rare that the average person is aware of these changes .

So it's important to stay informed and consult with a tax professional or an accountant to ensure you're taking advantage of all the deductions that you are eligible for as a photographer . Remember , you definitely want to conduct proper record keeping . It's a crucial part of providing documentation for deducted expenses in case you're audited . No funny stuff .

Okay , as I end this episode , I just want to say the following . You know there are some episodes that kind of stand out to me as being important .

They're not just fun , they're not just informative , they're really important and I'm going to tell you that this episode , this episode on making your photography your business , is one of the most important ones , because I think it shows you what the potential is if you run your photography like a business .

You make photography friends when you're in this or photography acquaintances , and I look at the way people do business and by no means am I saying I am great at this , because I'm not but I look at the way people conduct their business and it's just like why don't you give yourself upper hand here ?

How much effort does it take to just go online and file and be a business ? Stop doing your business like in the corner , like you're doing your business on the alley , in the alley . Let me , you know , let me bring out my phone . 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 people I've followed over time have said that when photographers or , as they call them , so-called photographers know , when photographers conduct themselves in a way that is not becoming of the profession , it helps to bring all of us down .

And that's one of the reasons why and again , like many things I've talked about them before but that's what makes pricing such an issue for us , because we have photographers who are charging hundreds and thousands of dollars for their products and for their services and then you meet somebody who you know , for 200 bucks you'll get all the photos that I took and

the digital . You know you'll get the digital's , you'll get all the . And it makes it harder for the rest of us . It's hard for me to conduct business when I've got photography friends taking cash out payment for $125 after you know , I want to say like after doing a photo shoot .

But I've met people who , like they don't even discuss the cost , they don't discuss the price before they have the client in front of the camera and at the end of the shoot the client says to the photographer oh , what do I owe you ? And then what are you going to say ?

Right , like you can't give a realistic number , which is that , well , just booking the session and photos is like 300 , 400 , 500 , whatever . You can't say that now because no one's going to believe you . You must conduct your business like a business , and the only person I'm criticizing here is myself , because I've been down that road .

I've been down that road that has led me to where I am now , and it's a road I don't want you guys to go down , which is you think that by lowering your prices , by charging less than the guy down the street . You're going to get more clients , you're going to get more business .

You're going to take that $50 for those 100 digital and you're going to accept it by a cash app . You're going to do that . And then when somebody comes to me 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 trained them that they can get photos for next to nothing . Accept your photography business like a business . Be militant about that and I hate to say that I don't even like that word but be militant about it . It's a business . If it's not a business , don't buy $1,000 cameras and $1,000 lenses . Don't do it .

When I see somebody I recently met someone who was using a camera the poor girl couldn't even operate it I'm like where's this ? Where's this ? Because I'm trying to help her out and she doesn't know it was a really I don't want to say , but it looked like a camera that was more than like I don't know , $3,000 or $4,000 that you can't even operate .

How do you think she's conducting her business ? I really I just want us all to rise up together to elevate in this world of photography and business together .

So treat your business like a business and tell your photography friends to treat their business like a business so that we all stand up and we all make what we deserve for the amount of work we put into delivering beautiful photos for our clients . Treat your business like a business , thank you .

Thanks so much for listening to this 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 your preferred podcast listening platform . I really appreciate your support . When you rate , subscribe and review , you're also helping other listeners find and enjoy this podcast . Until next time .