 BetterPhoto Member |
photo liscense i was at the lawyers office and they asked me how do I make my income I told them I am a freelance photographer and I i make some monies from time to time the lawyer asked if I was registered and I said no she said I needed to be so iam asking you guys why is it an issue with income or for some kind of proof that I am in the photo bizness?
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- Gregory LaGrange Contact Gregory LaGrange Gregory LaGrange's Gallery |
taxes
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Michael H. Cothran |
Every state, county, and city has different requirements. Business licenses are normally purchased annually from county or city governments, while sales tax licenses are issued by state government. If you charge sales tax, which you should be doing, you need a sales tax number issued by state government (Dept of Revenue). You report your business sales quarterly or annually to your State's Department of Revenue, and pay the sales tax you have collected. The sales tax number also affords you the priveledge of shopping at wholesale stores without paying sales tax up front. Any item you buy that is used in the direct creation and sale of your product is sales tax exempt if you have the sales tax number. For the photographer, this could be film, paper, ink, chemicals, glass, frames, mats, packaging,etc. As far as a "business" license is concerned, if you are working out of your home, or onsite (as a wedding photographer might do), you do not need a business license. And you DO NOT need a business license for tax purposes. Your income has to be reported, of course, with the appropriate tax forms, but the business license is not necessary at all for this.
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Laura E. OConnor |
WOW! Thanks for all of that info, Michael! I didn't know that I didn't need a business license to work out of my home studio! I thought I did! So I can post flyers, have a business name, hand out cards and everything without fear of being penalized? They won't "nab" me for operating an unlicensed business when I go to report my income? I assume I just use my ss# anyway, since I'm a sole proprietor.
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Michael H. Cothran |
I'm afraid I may be incorrect about the business license. I have been able to operate for years without one because I work out of my home, and most of my business is out of county. I do a couple of shows a year in my home county, and for those, I do buy a weekend permit. According to Metro, if my business (art & craft show photography) takes me out of county, I do not need a county license. Thus, you certainly need to check your own county or city for specifics. If you are running a portrait studio or wedding business, you may actually need to purchase one. If you do, it's no big deal - you just go to the Government office that issues one, and pay for it. There's no test, ha!
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Laura E. OConnor |
Thanks, Michael. I have to look into this further for my County. I think they require one, but I'll have to make sure. I appreciate your info!
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Grace Photography |
I would add to that that every state is different and don't assume anything! I know from living in CA and CO that both states are very different in what they require, and each city is different. The only way you will know is to call your city government. Tell them you want business license information and you will be directed from there. It's very simple and I wouldn't take a chance. If you are in business, there is certainly some requirements to be met; you can't run a business without covering yourself! I don't have to pay taxes on my estimated sales at all. I pay quarterly of what I have charged my customers. And I only have to pay tax on the PRINTS, not the service. That is huge. Hope this info. helps! Shawn
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