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Business Structures

Lesson 9 from: Business for Photographers

Sandy Puc

Business Structures

Lesson 9 from: Business for Photographers

Sandy Puc

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Lesson Info

9. Business Structures

Next Lesson: Business Set Up

Lesson Info

Business Structures

we're going to start talking about the types of companies that you are gonna breeze through this pretty quick is a lot of this. You may already know this. I'm always fascinated with Day one when I teach this program how many things people don't know about their businesses. And I think it's because we're art based that we get into it for the passion and we don't really get into it for the financials and the numbers in the paperwork. But let's just really go quickly. Go through what some of the types of companies there are their sole proprietor, that someone who owns and incorporated business by himself then, of course, is the partnership. This is where two or more people form a business to make a profit, several things you need to know from the tax ramifications. The partnerships file annual returns, but they do not pay income tax. Each partner includes their share of income or loss on their personal tax returns. The biggest thing with partnerships and this is one of the very popular qu...

estions when we get to this part is how do I feel about partnerships? I do not want to be a negative. Nancy. Sadly, in my history of photography, I have never I've probably met two people that have successful partnerships. I've met a whole lot that partnerships have failed. Reason they fail is not because they're not good people or one is bad. And one is good because they didn't put it in writing. If it's not in writing, I don't care how close you are, whether your blood relations best friends, you know, friends for life. When you put money on the line and you put your time on the line, there will always be online drawn. Somebody's always going to feel either mistreated or misplaced, and you don't want to do that to your friends. So when you have the clarity, the most successful partnerships, I know our people who said, You know what? We're friends. Let's keep it that way. Let's just be real, honest, straightforward, right from the get go and get it in writing and have lawyers approve it, and then we can move forward. And if anything bad happens, we know how it ends. And sometimes the ending is more important than the beginning. In a partnership, easy to find somebody you want to do it with. It's very hard to work with that person forever. So I do believe you can find success. I do believe the failures or when you don't do it. And I know you work with your mom, and that's a good example of an emotional investment as well. I mean, you love your mom, right? So So it makes it harder because you have to make decisions based on an emotional. It's not even so black and white is this is what's in writing. So obviously there's a whole other level of I wouldn't say stress, but of structure that you have to deal with. So those are things you want to deal with right out of the gate corporation. Of course, a corporation is a business that assumes a profit or loss paste taxes and distributes profits among the shareholders shareholders make in exchange of cash or property for the business capital stock. This is important. The prophet of businesses tax to itself when earned and taxed again to the shelf shareholders when distributed as dividends. So basically your company is being double taxed when you're a corporation. That's something that a lot of people don't know what they are. But typically, most of us are not gonna be corporations because as the owner of the corporation, your business would pay tax and then you would pay tax on that. So you want to remember there's no tax deduction to the business when it distributes dividends and shareholders cannot deduct any losses on their personal taxes. Business protects its owner from personal liability for corporate debts and obligation within limits. So the advantage of a corporation is if something goes wrong, it the business takes the hit basically, and you personally don't. However, double taxation is never fun. We already pay enough. Why pay twice? So then opens the gate to things like an S corporation. This passes income losses in deductions and credits onto the shareholders. Shareholders of an S corporation report on their personal tax returns and pay taxes at their individual income tax rate, which allows them to avoid double taxation. So ah, lot of photographers are s Corp s corporations for that reason myself, I'm in l l c So we want to make sure you understand what analyses? Because this is the one where a lot of people either a don't know what they are because they're CPU made them something or be they have not created that designation yet. It is important to know this an LLC. It's like a corporation, but it protects because it protects the owners from liability for the debts and actions of the company. But it also functions like a partnership, as they provide management flexibility and the benefits of passing taxation. So to me, when you really do the paperwork, it's it's the best of all worlds. Now the one person that really determines this is usually not the photographer. It's the financial advisor that you bring into your life, and we will talk about that in a few minutes. But if you're not familiar with which do you all know what you are at this point? Does everybody know kind of what they are? Good. So you guys have an idea of what you are, and you may change. I know I was a ness corporation a long time ago and then eventually became an LLC. Each of these designations does require a certain amount of paperwork. It's not something you just name yourself. I'm gonna be an LLC. Today there is an entire structure there. In my case, we had to sit down with a lawyer. There are things that you don't even think about, like corporate corporate papers were required to have a corporate meeting every year. That's part of. In order to maintain your corporation, you have to have a corporate meeting. That could be that we all passed each other on the way. The bathroom, You know, it doesn't have to be a super formal thing, but you do have to document that it happened in order to keep in to maintain that status. So it's not something that you could just pick one, and that's what you want to be. There is some. There's some very important paperwork that backs it up, and you would have to know that now, as you're starting to build your business, there, a few little basic functions that you're gonna want to do, like simply choosing a business name. Most of you probably have a business name. The number one question I get is, should I use my own name now? I have ah, strong opinion on this, and it's kind of based on that stuff we talked about before selling your business originally when I started in this industry long before digital technology, kind of the premise was that you were going to sell the business. So we were constantly told in seminars like this don't use your name because one day when you want to sell it, if it's your name, you can't sell your gonna you know, people aren't gonna want to buy it because it's you. So we were all really schooled heavily to not use our names to make it something that could be sold Now moving forward. We talked a lot about how I don't necessarily believe that you can sell a business as easily anymore. So now the question is, what do you call yourself now? Over the years, I've had all kinds of seen almost every name you could imagine in photography. And I will tell you that I'm not a fan personally of like, really kitschy names or silly things, especially trendy things, things that are dated also not a fan of using technology in the name things like digital or fast or quick or things like that. Like I think it should be more emotional. And to be very honest with you, I'm a very big fan of using your own name. I truly believe that using your own name is it really represents. You know, the next thing somebody's going to say is, Well, my name is Susan Smith and there are 400 Susan Smith's in my neighborhood. I get that, but there are not of you. You are uniquely yourself and you build a name off of that course. Then you can get deeper into well, what should? But Susan Smith was sold a long time ago. I can't get the website and we can talk about all those things a little bit later. But right now, the key questions, Or can you sell your business? We've kind of talked about. You know, I'm not saying you can't. It's possible. I just have not seen anybody do it in a really long time. Your name does become recognizable. Our studio. We built our foundation on charitable work. What Bert talked about Bert and I have worked for years together in both PP a lot of you are familiar with. Now I lay me down to sleep. That's an organization I founded eight years ago, almost eight years ago, and that was really where my heart so long before I was a teacher and instructor at the level I am the foundation of our company was doing charitable work. I know that in my community I'm lucky that I have that short, little interesting last name. That's kind of hard. There's not a lot of us out there. I think there's one fame famous Sandy PUC somewhere in South America. She's a famous singer, so she's my only competition right now and we're very different. But I do know that I'm not marketing to the whole world. And wherever she is in South America, people don't really care that I exist. I was just excited when I passed her Google pages. You know, I was like, Yes, I have more Google pages in that lady So now it really is my market area. There aren't any more. Sandy PUC is in my area. But even if I was a Susan Smith, I also know that if Susan Smith is out at this charity event and she's donating to this auction and she's doing this, that and the other, your community is going to recognize you for those things and they're your name. Your version of your name is going to rise to the top above everybody else because of who you are and what you believe in, what you do. So so consider your name for sure, as a resource as a tool to market you, because the goal is to establish a brand and define you as an artist. And what better way to do that, then, using your name Now, what does your name say about your business? Well, obviously, as I said, try to avoid things that are trending or sentimental phrases, things that means something to you may not mean anything to anybody else, and they get very, very confusion confusing your business name. And this is one of those probably in all caps. Your business name is your 12th advertising. That is the fast. The first thing they're going to see if they see you on it is the fastest way for them to make a connection. Sandy puts photography in my community is very recognizable. We've been there for many, many years. We have outlived many of photographer there, probably less than five photographers in my community that have been in the industry or been in Colorado as long as I have. I've seen a whole lot come and go, but they're just a few of us that are sort of that those staples of our community. So to me it is a 12th advertising. It is. It is your sort of flash point to get people's attention. Once you selected your name, you obviously want to go through the legal side of registering it and becoming a legal entity. Now, when choosing a name, you want to make sure that somewhere in the name is corporate incorporated, what you do. I mean, what are you? Obviously photography is the easy answer, but you want to choose something that lets people know you are a photographer simply using Studio Art. Gallery does not spell out that you are a photographer. You may want to consider including the word portrait or photography or image in your name to clarify. Now I feel like a I can say this because historically this is my company's history. Way back in the beginning, many, many, many, many 27 years ago, my one of my photography teachers, he under company ultimate expressions. When I moved to Utah. I decided I liked that name and I went with expressions photography. Now, again, that was way back when they said, Don't use your name because you want to sell this. We were all in the mode of We're gonna build giant $1,000,000 studios and sell them. Eventually, I started to realize that my name was important. I had a unique name and I wanted to showcase. You can see I kind of dropped it in there. And then you'll see. It sort of started to get bigger. It didn't really get until we actually the one with the S and the logo. The sandy puts portrait design that Onley happened five years ago. What happened is somewhere in that gold logo was right about the time that I started to realize that in Colorado there were, at least at that time, about five or six companies that we're now using the word expressions. There was expressions by Cindy expressions of Colorado of the word expressions kept popping up in photography businesses. It bothered me, but I kept thinking that I was ahead of them and I had more of a presence in my community, but probably the rial kicking kicker for me. The turning point for me was I received a phone call of a very irate woman who was just They put me on the phone because she was so out of control that she was so upset with us for this horrible thing we had done at this event and this situation. And she was so upset she wouldn't even listen that I wasn't the studio she was talking about. But she kept saying Expressions this and expressions And you guys this and you guys this and I was like, I'm sorry, I really, truly we did not shoot that event that somebody else And that sort of unnerved me a little bit cause I thought, You know what? There's somebody out there doing bad things, and somehow people are relating it to my company. And then, of course. And then, of course, I had another call. This was sort of the final, the straw that broke the camel's back. I had another call, and it was a woman who was booking a fairy portrait. We were very known for shooting the cute little fairies on the mushrooms and all that, and she called me, and she told me that she had called another expressions. But it was in Colorado Springs, which is 40 minutes away, and he had booked the appointment. She got all the way there. She had extra fairies and he cut all. She got all the way to his studio and he said, Oh, that's another photographer. I don't do those kind of fairy. So he knowingly knew what he was booking, and yet he took that business and it's OK. I mean, maybe he didn't know. I don't really know the truth, But the client was very adamant that she was very unnerved, that she had wasted all that drive time and all that effort had clearly stated what she wanted, and he knew that it was somebody else. And he eventually gave her my number. It said, Oh, she's the one that was the fair. Hey, so center my way. But But that was the second. That was the one where I said, Okay, you know what? I'm not gonna do this anymore. I don't There too many people out there they might be doing amazing work, but I felt like I was in a pool of people that had similar names. So we eventually five years ago switched over to Sandy. Put your portrait design on. Then eventually we really I started to take my own advice, and I just decided to keep it very simple. Sandy put photography. It's my name, and it's what I do. And it just simplified everything. So in the last year and 1/2 we've been saying, You put photography and you can see this is 27 years of evolution here are probably at least since the beginning of my first logo, and people always ask, Well, I've had this for five years. I've had this for seven years. I can't change it now. Cancer is a really bad word, because if I can, after 20 I didn't want to do. I think it hurt my business. When I switched, I don't think it heard it, but I was working on a legacy project last Sunday and the client, she said something about expressions, and she looked at me. She said, No, wait a second. You still expression. So she and I had worked with her for 10 years, so in her mind she we will. We will always be expressions photography to her in her home. I got to go into her home. She has work that says, Expressions. Photography also has worked that signed Sandy Push. And later on tomorrow, I believe we'll talk about signing your work and how that's another thing that if you're gonna build your name and build your brand, why not start right now? I know that my name. I would like my name in everybody's home because it's recognizable expressions could have been one of any of those other people Sandy pushes pretty unique to me. So definitely something to think about. We have one of our SPU students on SPU is is our resource for education. We have an ongoing resource. Will we do marketing four people. Chelsea is somebody that when she came to our forum, we produce all the marketing pieces. We create the templates, but we also guide you as far as how to build your business. So when Chelsea came on board, she had one of those names on Guy wanted hope. I say it right and macho day. Macho day is what is a macho day. Now that was a word that meant something personal to her. She has a very emotional reason why she chose to use that word. So it's really hard when somebody asked your advice. And you know that emotionally, they're very connected to something and you don't want to offend them or take away. But you saw me. Even now I struggle saying her company's name and most people would. So the advice I gave her was really that as much as you emotionally connect to it looking from the outside from a consumer looking in, they're not sure how to say it. They're not sure what it means. Does anyone do any of you know what it means? It. I believe it's I can't even I'm not even positive and she's explaining three twice. But it's one of those things where to me I only see the emotional side of it, but I don't know the meaning behind. So this is a great example of I just didn't get it as a consumer as a photographer, isn't a person a human being? I got the story behind it, so our advice and and we have an incredible forum and we're very we're a family, so we are very gentle and kind. But honest forum. We will tell you we have no trolls know lean people. But we'll tell you when we think you need to make a change. So at at that advice we said he really your name is very unique. Chelsea is a beautiful name and your last name is very unique. So he suggested that she tie it into her logo kind of what I did. And very quickly she caught on and you could see the transition she made. She decided to go with just her name and I think her name. It's clear it's easy. It's visible through that process because we do the marketing side of it, too. It was kind of fun because on the forum we got to see her make that transition and we dio I mean, the nice thing about having a forum of my own is I could be there for daily education. I know some of you are SPU students, and I know we have a ton of SPU students watching this, so they know what I'm talking about. But when you have the ability to ask a forum of hundreds literally thousands of photographer saying Okay, This is my design. What do you think of these colors? And it's kind of nice to have a group of community of people to bounce ideas off of and whether it's our forum or it's, you know, another form that you work with. You just want to find a friendly place to be. One thing I really that's disturbing to me is when you get in an educational facility like a forum and you have those trolls that just hurt people, the ones that you know, a new photographer whose work basically is not there. They have a long way to go posted image there, so proud they're so excited. Sometimes you have to remind yourself that you kind of work best photographer when you started, either, but you thought you were. That's the difference is I remember my first images. I was so proud of those. And now I have those original negatives and they're horrible. Oh my gosh, I was a terrible photographer, but I remember emotionally how I felt the first time I delivered my first order. The first time I got my first check, $158. I sat in my car and I cried and I cried and I cried. I couldn't believe somebody gave me $ to do what I love to do now. I found those files and I cried and I cried, so I couldn't believe I gave that to somebody for $150. I felt like I ripped them off because it was a terrible, terrible lighting like hatch, any lighting and just But at the time, the day that happened, it was the most beautiful work I had ever created to that day. And to those parents, they were the most beautiful porches of their Children they had ever had. And that's part of that learning curve. So it's kind of fun to watch people go through the process of the build and eventually find. I mean, it's just little things. Later, we're gonna talk about colors and choices, and I mean, you all would have a favorite yes or no on this one. But there are reasons people choose to buy things. They're reason people will make commitments to be your client, and every little detail counts. Wait till tomorrow, when we talk about marketing and color choices and and logo choices Eminent gets again. This class could be the most overwhelming thing you ever do in your life, or it will be the greatest step you ever take. It's either a big step in the right direction or you're gonna sit and you're gonna curl up in a little ball and you're gonna shake and you're gonna put your head in the sand. And if you do that, then you miss the point cause honestly, my goal. I wish I could have 50 days to teach this, and I wish we could do one task a day, and we all just hold each other's hand and make it one day. We can't do that. I have to literally open up the floodgates and just throw up this stuff on you and pray that some of you pick out some of the gems. And some of this make sense to you, because this is 27 years what Chelsea went through in less than six months of making that decision. She's a relatively newer photographer in six months. She did what took me 25 years to do, and that's finally figure out what I wanted to be. And so again, it's all about making it easy for you. Now you have a lot of resource is this is another one. The business that usa dot gov is a great resource for starting your business and getting going. I know that there were some questions and I just stuck this. I move this around a little bit just to stick this in here. There was some confusion on the course guy, the course guy, and you can download that for free. And that is just your supply list for what's today and what's tomorrow and the next day, and also the description of what's going on. The book is what we're working from. You don't have to have the book to do this. You guys do have the book. This is what I probably I think I showed this earlier, but this is what it's all for me, what it's all about. All these forms. You guys now have access to all of those that business plan that we showed you that business plan on our site is we sell it for, like, I think it's 90 something dollars, and that's included in this book, so you're getting every single form ever had. That's 27 years of of brain surgery and mistakes, lots and lots of mistakes. I mean, it's everything toe, every consultation, note everything we do. So it's really a great value. And I hope you guys enjoy that because it's something that I truly, literally, my heart is sitting on this tables.

Class Materials

bonus material with purchase

RBCSM_BonusItems.zip
RBCSM_BonusItems_ReadMe.pdf

bonus material with enrollment

RBCSM_CourseScheduleandSupplyList.pdf

Ratings and Reviews

a Creativelive Student
 

HELLO CREATIVE WORLD! Sandy's Puc is my first course I bought from CreativeLive. Sandy Love your dedication, determination, experience and love for photography. And all that while growing the family. wow!wow! hugs from London :)

a Creativelive Student
 

Only had a chance to watch the last day and bought the program. Saw you speak in Chicago at WPPI and fell in love with your style of teaching and your love of photography. Could not wait for this program. Thank you.

Student Work

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