LLC question

[Lori11]

How do I know if I need to do an LLC for selling photo's, does it have to be a full time business to do that? The few I have asked in person want to tell me everything in legal speak, which would be fine, but if I knew all that I wouldnt be asking no rush on this answer, but an answer I understand will be helpful lol

[retroactiv]

you might be able to do the sole proprietorship like I do. Your best bet is to go talk to an accountant if you think you are going to make this into a business, they will be able to keep you out of a bunch of $&^# if you get what I'm saying.

[Lori11]

ok, I will look into that too, thank you!

[mjs1973]

I to do this as a sole proprietor.

Do you do any shooting at other peoples homes, or businesses? Someplace where you could cause damage to other peoples property? For example, are you shooting a wedding, and your lights could malfunction and burn down the church? If not, I wouldn't worry too much about being an LLC. From what I understand, being an LLC is to protect your own personal assets in case you cause damage to someone's property. They could sue the business for what it has, but they couldn't take you for everything you own.

Of course I am not a lawyer or an accountant, and this is a pretty simplified explanation so take it for what it's worth.

[Lori11]

Thank you thank you! That helps a lot!

[brmill26]

Mike pretty well has it covered. As a solo photog, there's very little reason to actually create a separate business entity (LLC or S-Corp) because the potential liability as a typical photographer is quite low. And limiting liability is really the only reason, because a single-member LLC is ignored for tax purposes. In other words, if you're the only person in the business, then all profits/losses/expenses are considered the same as personal expenses for tax purposes, and therefore there is no tax advantage.