weddings, family portraits, sports, etc...making about $500 a month
2006-09-20 12:25:06 · 6 answers · asked by prevacidman 1 in Business & Finance ➔ Small Business
making $500 now but have the potential to bring in extra one to two grand a month...maybe more. Weddings are growing for me and I have a website and business cards!
2006-09-20 12:55:30 · update #1
No, not really. It depends upon what is driving you to seek forming an LLC or some other corporate form. Generally speaking, an LLC would protect you from personal liability for the debts/suits of your company. The services-nature of your business does not really appear to make you vulnerable to excessive debts or liability for damages. If you're looking for tax protection (and avoidance of double-taxation, etc.), I suggest looking into forming an S Corp. as yourself. But, realistically, with your estimated income ($6000/year), I do not think that including your photography income with your regular earnings will substantially affect your tax liability at the end of the year. Here, this is pretty good:
2006-09-20 12:34:51 · answer #1 · answered by Shibi 6 · 1⤊ 0⤋
First off you need to speak with a business attorney and then a CPA. Chances are good they will tell you to invest in some sort of insurance policy first. Once your business grows a little more then your CPA might advise you to form an LLC. The reason for filing for an LLC is for tax advantages and to protect your personal assets in the case you were sued or went bankrupt. Here is a good article explaining the different types of business http://www.home-business-expo.com/8172006_Incorporating.asp.
Best of luck with your business and I hope this helps.
2006-09-21 02:48:46 · answer #2 · answered by SAM 2 · 0⤊ 0⤋
It is highly unlikely that there is any reason for an LLC [limited liability company]. It costs money to do this and your risk at this time and for that business seems to be low.
What possible liability do you have? You have to think about that.
You might want to consider a general business liability policy - you trip over the wedding cake when taking photos for example. Much much cheaper than the legal and filing fees for an LLC.
Good luck to you
2006-09-20 12:29:58 · answer #3 · answered by John the Revelator 5 · 0⤊ 0⤋
LLC is to limit your liability. Your business is so very unlikely to incur liability it should not be even considered. You might want to talk to an insurance guy about coverage if and when your equipement fails and you get no usable photos or some such.
2006-09-20 12:28:13 · answer #4 · answered by DelK 7 · 0⤊ 0⤋
At this point, that probably wouldn't be a good idea. it would be more work than it's worth. If you want to do it full time, or your profit increases, turning your business in to an LLC can work to your advantage.
2006-09-20 12:27:41 · answer #5 · answered by crazedlunatic29 2 · 0⤊ 0⤋
You don't have much exposure to liabilities so why bother? Just be sure to take care of your taxes, including self employment taxes. You may want to check uot the IRS web site about self employment taxes also payment os estimated taxes.
2006-09-20 12:35:25 · answer #6 · answered by curious george 5 · 0⤊ 0⤋