Selling your photographs can be a rewarding business, and not just for financial reasons. Most people involved in a photography business are passionate about their work and enjoy it immensely. However, it is essential to understand your responsibilities if you own a photography company.
Perhaps photography was initially just a fun hobby. You could have gotten started by taking pictures for your own enjoyment and/or helping friends on special occasions. Maybe it wasn’t your idea to start charging for your product, but you got encouragement from admirers and looked into how to start a photography business. Here are just a few kinds of events where you may have gotten started:
- wedding photography
- birthdays and other family events
- sports events
- and/or travel pictures.
Once you decide to sell your work, though, you need to ask yourself the question: “Do I actually need a photography business license?” Once you start selling your work, it generally means that you are operating a business. At that point, you need to ensure you are following the rules to protect yourself and your income.
Do you need a license to be a paid photographer?
You will probably need a small business license, but the specific requirements will vary depending on your location. The federal, state, county, and city government may have distinct rules. Most places do not have a specific photography business license, although some do. If there is a specific photography business license, you will probably need to register with the state or local authorities.
What you will probably need is a general business license, not a specialty license. Photography is not generally regulated like many other professions, such as teaching, nursing, and cosmetology. What you need to focus on are general business license and sales tax requirements.
Some situations that may require licensing:
- Operating from home (you might need a home occupation permit, which can vary based on factors such as zoning)
- Renting studio space (and understanding how to allocate that as a business expense)
- Selling physical products like albums and prints, and understanding tax implications
- Hiring second shooters or employees and paying those taxes, and even possibly employment insurance
- Shooting in public parks or city-owned locations (event permits and possible zoning issues)
You need a business photography license if you are selling your product. It doesn’t make a difference if you are only working part-time or on special occasions, or if you consider your business casual.
Photography business license requirements
Just keep in mind the different kinds of legal requirements for where you operate.
General business license
Many states require businesses to register with the Secretary of State. This basic registration will protect your business name and structure. There may also be specific requirements by cities and counties so that they know which businesses are operating there. Once you register, you will usually need to renew every year and keep your information updated.
While not complicated, photography business registration is important. If anything should happen that could affect your business, the state and local officials will be able to contact you and help you work through any issues that arise.
Home-based business requirements
If you decide to operate from your home as an online business, you need to make sure that your local jurisdiction allows that. Some locations have zoning regulations that do not allow anyone to use a home address as a business address.
You may have to get a special permit for your home business. If clients and suppliers come to your home office, there may also be special rules about parking and how often people can come and go. Watch for rules about signs too. You may not be allowed to openly advertise in your neighborhood.
Sales tax permit (if applicable)
Sales tax permits can feel intimidating. If you are not an accountant, you will benefit from consulting someone who can help with any questions you have. Many states require every business selling physical items to have a sales tax permit or license before collecting sales tax from customers.
Digital items may be considered differently, and that also varies by state. Make sure you register for a sales tax permit if required and collect taxes as needed. Setting up the permit is easy and free or low-cost, but failure to follow the rules can result in punishment, including fines or even the loss of your ability to operate a business in that state.
Permits for public locations
Some public locations require that you obtain commercial filming or photography permits before conducting a shoot. Depending on the size of the event, you may need to get additional approvals. Make sure you are following the rules for whatever venue you are using.
Business structure registration (if applicable)
Your photography business license is usually local, but you will need to choose a business structure when you register with the state. The most common considerations are:
- Sole proprietorship (you may not formally need to register if you choose this)
- LLC or corporation (this has a separate filing requirement, and many choose this form because it protects your personal assets)
- DBA (Doing Business As) if operating under a brand name
The form you choose will have differing legal and financial implications, so you should choose carefully depending on your current and projected needs.
How much does a photography business license cost?
There is no single answer to this question. There may be a wide range of costs depending on:
- Business license cost varies by city and state, and you may have to pay fees and/or taxes for multiple jurisdictions.
- Home occupation permits may have additional fees, and you may have to pay to get your home into compliance with local licensing rules.
- Sales tax permits are free in some states, but you have to pay a fee in others.
- Public location permits can range widely depending on event size and location and whether it is a special event locally.
Additional fees:
- Renewal fees may apply yearly. Rules and fees can also change every year.
- Late penalties may apply, so pay attention to deadlines.
- Costs are usually lower than people expect. Most jurisdictions are happy to have small businesses and do not want to discourage you with excessive fees.
What happens if you operate a photography business without a license?
There are many different kinds of possible punishments if you are found to be improperly operating a business without a license. These can be simple and easy to fix or even permanent.
- The state can fine you for failing to register and can punish you for not paying taxes.
- Fines from local government may cover everything from local taxes to zoning issues.
- You may be denied permits for future photo shoots.
- Your business may experience issues opening a business bank account if you are not in compliance.
- Insurance complications are serious and may end in you being personally liable if something happens.
- You may experience problems enforcing contracts if you are not a legitimate business.
- State and local jurisdictions can ban you from operating there again if violations are egregious.
Setting up your photography business properly
Especially if you haven’t set up your own business before, it can help to find someone who can assist. Platforms like Tailor Brands can help you choose the right structure, register your business name, and organize the financials to get you up and running.
Setting up the financials is vital so you can take money during sales transactions, and you will need an EIN (Employee Identification Number) with the Internal Revenue Service. This will basically serve as the tax number when you do banking and other financial transactions. Tailor Brands can also help organize business documents, contracts, and permits.
No one is guaranteed to get a business license, but proper presentation will help your application. You also reduce risk to yourself and your photography business when you are in compliance with local and state requirements.
Conclusion
If you are charging for your work, you are likely operating a business. You may not need a specific business license for photography, but you will need to follow the rules and regulations for general businesses. The good news is that your business license is probably straightforward and affordable.
Requirements will vary by location, including city, county, and state. You can save yourself stress and money by handling these matters as early as possible. The last thing you want to think about while doing what you love is whether you filed paperwork right. Once you have everything lined up, you will be free to be as creative as you want.