Choose Your Business Structure
So let's talk about making your business official. Now this is a lot of stuff that a lot of people are interested in and we want to get you as much information and as much advice as we possibly can, everybody's situation is going to be different per your city, your state, your province, your country, your region. Um So we're gonna give you as much advice and resources as we can to help you figure out how to make your business official like business official like official business where you live. And again you are capable of starting to shoot and make money without doing any of this. But I wouldn't recommend it because this is this is something that's going to protect you legally. Um It's gonna help you with your accounting, it's going to make things very straightforward and it's going to make sure that you're doing everything right legally for your sort of region, country state or city. And I just wanted to pop in here really quickly and add that when I started my own business. I know ...
this is so confusing when you're starting out and to do it yourself can be, can be really confusing. So my best advice is to heed our advice and really find an accountant in your local area that knows the laws and knows the steps and has helped other businesses get formed because they can really help you work through this process. I found a friend who had started a business and he referred me to his accountant and it was the best decision to kind of outsource this process and get the help so that I knew um and and could trust that everything was done the right way. So just wanted to pop in here and really say it might be best to after you go through this lesson in this course to actually go out there and find an accountant who can help you. And of course that's going to be beneficial in the long run for someone who can help you with taxes and accounting and stuff like that too. Thanks Phil All right, let's get going. There's a lot of steps so we need to get going. The first step is choosing a business structure. So business structure. Now we make this course available worldwide and a lot of people are joining it. So we want to make it available to everyone, which is why we don't go into specifics about each region. So for my region, the different business structures are sole proprietorship and that means you can use your own name and it's just you a partnership, an LLC or a corporation in a sole proprietorship. You can get going right away. Now that's just you as a single person doing a business. William. Carnahan, Photography. There's not a lot you have to do to get going and you can use your own name and people can just pay you with your name without the photography on the end. Pro of a sole proprietorship is that you get going right away. Um you can use your name to really just carry you further without doing a lot of the paperwork, but the liability is there you as a sole proprietor are fully solely responsible for everything that you do as a business and entity. Which is why you would choose one of the other things for a little bit more legal protection. A partnership is a business with more than one person. Typically this is basically like to sole proprietors kind of coming together. My original wedding photography business that I started when I was 19 was a partnership and it was just two photographers. Typically, most of people that are watching this class are not going to be in a partnership. You're going to be running your own single photography business. But just so you know, now again like sole proprietorship in this case, anyone in the partnership is legally responsible for your actions. You're counting your money, your business, it's just the two of you as individuals. An LLC. Or a limited liability company is a way of creating your business as its own identity. In my region, an LLC has issued an E. I. N. Number. So it basically has its own tax I. D. Versus a personal tax id. So this is really the easiest way to start a sort of company structured business outside of sole proprietorship by starting your own entity. The LLC is now liable for pretty much everything. It's liable for its own accounting, its own responsibility. And it's a way of sort of separating you as a person from the company in case the company gets in trouble, The company will be at risk and responsibility versus you as a person. A corporation is similar to an LLC and that is a separate entity than the person you are as a sole proprietor. Um It also has some tax benefits in certain regions that you're independent on where you are. Um So it might be another step or a different step that you take from an L. C. It's a little bit more complicated to set up um And requires a little bit more work on the back end. But depending on your region, this could be a benefit for you um or you know, just being a sole proprietor or an L. C. Might be a benefit for you. Again, all this depends on where you are in the world. When it comes down to choosing your business structure, the L. L. C. And the corporation that are available to us in my region are what protect you as a business basically. They are responsible versus you if for some reason you were to get sued, the business would get sued and not yourself, so you can sort of separate that. So because of that we recommend actually starting a business structure as a business, whether that's an LLC or a corporation. Again, this is dependent on where you are and what you can start Um And what you're capable of doing in certain States and regions, LLCS and corporations may cost extra money. They may benefit you or not benefit you for taxes depending on where you are. Um So the big thing for us is the protection, the legal protection that you have is better served in a corporation or an actually official business with its own sort of I. D. And an entity. Again, I cannot recommend this enough. You need to talk to a lawyer, an accountant that's in your region and know your laws to decide what you want to get set up as another good tip is to find other photographers, sit down with them and see what they're structured as and see if you can get their advice. This is all very general advice on how what we do works for us, but it's very different for where you are.