0:00

Hi everyone . In this week's

0:02

episode , we're going to talk about making

0:04

your photography your business

0:06

Because , let's face it

0:08

, most photographers do not operate

0:11

their photography like a business

0:13

. Sure , you love photography

0:16

I do too and you like

0:18

making money with your photography . But

0:21

are you willing to go that extra mile and

0:23

make your art into your business

0:25

? It's really not

0:28

that hard . Let's dive

0:30

in . Welcome to Clued Up

0:32

with Maria B , the behind the

0:34

scenes photography podcast . Clued

0:36

Up is your insider's view to building successful

0:39

magazine style photo shoots . We

0:41

talk design and concept , fashion

0:44

and style , tech , social

0:46

media and , of course , business

0:48

Plus . So much more , including

0:50

how to avoid common photography

0:52

pitfalls . You'll also meet some special

0:55

guests who work behind the camera and in

0:57

front of the lens . Whether you're an aspiring

0:59

photographer , a portrait photographer

1:01

thinking about starting your own business , or

1:03

you just have an interest in what it takes

1:06

to plan and execute professional

1:08

shoots , you've come to the right place

1:10

. I'm your host , maria B . Now let's

1:12

get you Clued Up . Okay

1:15

, so let's dive into this

1:17

week's episode . We're going to start

1:19

with the very basics of turning

1:21

your photography into a business

1:24

. First , we're going

1:26

to talk about the process of creating and

1:28

registering your business , and

1:30

then we're going to talk about the benefits of

1:33

making your photography into

1:35

a business and

1:37

, for the sake of simplicity , I'm just

1:39

going to talk about what you've probably

1:42

often heard referred to as an LLC

1:45

. That's our starting

1:47

point . First , we're going to talk

1:49

about an LLC in general terms

1:51

and then an

1:54

LLC specific to photography

1:56

. So

1:59

an LLC , which

2:01

stands for a limited liability

2:04

company . It's

2:07

actually a type of business

2:09

entity , it's

2:11

a business structure , and

2:13

that structure provides protection

2:16

for the owners of the business

2:18

, whether the owners are partnerships

2:21

between one or

2:23

two or three people or

2:26

more , I believe or , as

2:29

in the case with most photographers

2:31

, sole proprietorship

2:34

or entrepreneurship . So

2:37

what does this mean ? What is an

2:39

LLC ? What is a

2:42

limited liability company

2:44

? As

2:46

an LLC , your personal

2:48

assets , your home , your

2:51

car , your savings , your

2:53

investments they're

2:55

generally protected from

2:57

your company's debts and

3:00

your company's liabilities . In

3:03

other words , in the event of

3:05

financial troubles or legal

3:07

issues , your personal

3:09

assets cannot be touched

3:12

. Your business exists

3:14

independent of you as

3:16

a person . Your

3:18

assets , your home , your car

3:21

, your savings , your investments cannot

3:23

be touched and are not

3:26

at risk . Llcs are

3:28

popular among small businesses

3:30

and that's because , whether

3:33

you're a solo entrepreneur

3:35

or you have

3:38

a partnership with someone

3:41

, forming an LLC is

3:43

very easy to do . It essentially

3:45

consists of simply filling out

3:47

some online forms . It's

3:50

minimal amount of work and

3:53

you usually only have to pay a small

3:55

fee . It

3:58

does require at least as far

4:00

as I know annual registration

4:02

. So I live in New Jersey and

4:04

I'm required to file or renew

4:06

my status as an LLC

4:09

annually , and

4:11

that costs me $125

4:14

every year . I

4:16

first registered in 2016

4:19

. It has been the same price ever

4:21

since . Now

4:24

, what's the big deal about being an

4:26

LLC ? Well , there

4:28

are actually quite a few , a

4:31

few major points that you should be aware

4:33

of and you should consider

4:35

in determining

4:37

if you want to become an LLC

4:40

, and if you're a photographer , I

4:42

think it's a great idea . So

4:46

we've already talked about the first

4:48

benefit to being an LLC

4:50

or creating an LLC , and that is

4:52

the limited liability that

4:55

is , separating your personal assets

4:57

from your business assets or

5:00

from your business , I should say and

5:02

this protects your personal assets

5:05

. But here's the thing you

5:07

need to understand that

5:09

, while LLC status provides

5:11

liability protection , certain

5:14

actions on the part

5:17

of the business owner things like

5:19

making personal guarantees

5:21

on loans or engaging

5:24

in illegal activities can

5:27

restrict the liability

5:29

of your company and

5:32

consequently , expose the

5:35

owner of the company or

5:38

the partners . It

5:40

could put their personal assets

5:43

at risk . Short

5:46

term , you have to operate your business

5:48

on the up and up . It's

5:51

important to understand that regulations

5:53

and requirements of forming and

5:56

operating an LLC in

5:58

each state or jurisdiction

6:00

if you're outside of the US

6:03

differs . So

6:06

, state to state , you

6:08

need to look at what what

6:11

the requirement is in that

6:13

state and what it takes to maintain

6:15

that status as an LLC

6:18

. So , whether it's a state or

6:20

US jurisdiction , you need

6:22

to know what the laws are

6:24

in that given area

6:26

. If you are outside of

6:28

the United States , you need to look

6:31

at what your location requires

6:33

. The

6:36

second major benefit of filing

6:38

as an LLC is taxation

6:41

. We're going to talk about this

6:43

in depth a bit later , but as

6:45

an LLC , you can choose

6:47

to be taxed as

6:49

a solo entrepreneur , also

6:52

referred to as a sole proprietorship

6:55

, or as a partnership if

6:57

there's more than one owner , or

6:59

you can be taxed as a corporation

7:01

. It all depends on what

7:03

your business structure is and

7:07

what is the best

7:10

way to optimize your tax

7:12

situation based on your

7:14

needs , circumstances and

7:16

the structure of your business . And

7:19

then the third major benefit of

7:21

registering as a business

7:23

and as an LLC is that

7:26

you have the ability to claim business

7:28

expenses on your income tax return

7:31

. But in order to

7:33

do this , you've got to be really

7:35

organized . I would say

7:37

it's not just a matter of being organized

7:40

. You really need to be disciplined in

7:42

finding a way to organize and to

7:44

track your spending , particularly

7:47

your spending related to photography

7:50

or related to your business

7:52

. You have

7:54

to treat your business like it's

7:56

a business and not

7:58

like it's a hobby . If

8:01

you're used to having an accountant do your

8:03

taxes , you may want to find

8:06

and you may want to change that and find an

8:08

accountant who specializes

8:11

in taxation

8:13

for artists . And there are even

8:15

accountants who specialize

8:17

in taxation for photographers

8:20

. Now

8:22

, I know all this sounds a little

8:24

complicated and kind of heavy-handed

8:27

and you may be sitting there

8:29

listening to this thing . Nah , I'm

8:32

just doing this for the fun . But

8:34

here are a couple of things to consider . The

8:38

reality is that stuff

8:41

happens right . You

8:44

have a client you get along with . A

8:46

client may even be a friend , may even

8:48

be a family member , and

8:51

You're photographing them . You're photographing

8:53

I don't know your second

8:57

cousin's first

8:59

communion or something , and Uncle

9:02

Dave trips over your

9:05

camera bag or I don't

9:07

know . He's tripping

9:09

and he goes to Brace

9:12

himself and he does it by

9:14

holding on to your tripod or something

9:16

and he gets injured

9:19

. Let's say you

9:23

may have had a good relationship relationship

9:25

with him before , but

9:29

he might blame you for

9:32

his injury . He

9:34

may hold you personally responsible

9:36

. So think

9:39

about things like pain , suffering

9:42

, emotional distress and

9:44

all the other terms that you hear

9:46

about when people are looking for

9:48

money , and Do

9:50

you really want to take the chance ? Do

9:55

you really want to take the chance that someone

9:57

may get injured and may hold you responsible and

9:59

the

10:02

only thing you're gonna have are your

10:04

personal assets that

10:07

may get wiped out , or

10:09

a portion of them , or you may have to pay for

10:11

somebody's Hospitalization

10:14

or something like that ? So Do you

10:17

really want to take that chance ? If

10:21

you're doing photography photography for fun and you're getting paid , you're

10:24

making undeclared income and

10:27

that's a problem for your favorite uncle Uncle

10:33

Sam , also known as

10:35

the IRS and that's the second big point to Becoming

10:41

an LLC and making your photography

10:43

into a business . Your expenses are

10:45

your expenses

10:48

as a photography business or your expenses

10:50

as a business . Your

10:53

expenses will will outweigh your income

10:55

for years before you're profitable

10:58

. It is so rare For

11:01

a new business to become profitable

11:03

. You're lucky if , after five years

11:05

, your head is above water . It's

11:10

not an even a matter of not paying

11:12

the government their share when it comes to the the

11:14

you

11:16

know a little bit of money that you make in your

11:18

first couple of years as a business . What's

11:22

really important is that you

11:24

can increase your tax refund by claiming your business

11:27

expenses , particularly

11:30

if you are a photographer . If

11:34

you're not an LLC and

11:37

you're not filing as a business when you do

11:39

your taxes , You're

11:43

not even leaving money on the table

11:45

. You're actually just throwing money away . Let me

11:47

repeat that if

11:49

you are a business and you

11:55

have not registered as

11:58

a business right , you have

12:00

not filed as a business and because you haven't filed

12:03

, you cannot claim your business expenses

12:05

. You cannot claim your business expenses

12:08

when you do your taxes

12:11

. You're not

12:13

just Leaving money

12:15

on the table . Leaving

12:17

money on the table is you

12:20

file your business expenses but you forgot

12:22

to add in that you bought a laptop specifically

12:25

for your

12:27

business , right ? That's

12:29

. That's leaving money on the table

12:31

. If you're a business and

12:33

you

12:35

know if you operate as A

12:39

business or if you should operate as

12:41

a business , but you choose not to , you're

12:44

throwing money away . You're not even leaving

12:46

it on the table . You're just throwing it

12:48

away and walking away . So

12:52

pretty much that's our discussion in general

12:55

terms , and now we're gonna get to the specifics

12:57

of photography . So

13:00

how do you register your business ? How

13:02

do you register your photography as

13:04

a business ? It's

13:07

actually quite simple . First

13:09

, come

13:12

up with a name . You

13:14

may want to do an internet search to

13:16

make sure the name you choose is unique

13:18

. Some states in fact

13:21

have business naming rules , so

13:23

you may want to make sure , check

13:26

with you know your local government

13:28

or check regulations online for

13:30

your state about naming

13:33

your business . Here's

13:36

a tip Most photographers

13:38

use their name in their business without

13:40

consideration that one day

13:42

they may want to sell the business . If

13:46

my name is Mary Jones and I'm

13:48

Mary Jones photography , and Five

13:51

, ten , fifteen years from now , I

13:53

want to sell my photography business

13:56

, how

13:58

do I sell something that has my name on

14:00

it , right

14:03

? So that's something to consider when you're

14:05

choosing the name of your

14:07

photography business , because

14:11

that could be a problem years down the road

14:13

again when you choose when

14:15

and if you choose to sell your business . Just

14:18

something to think about . Also

14:21

, know that you

14:23

do not have to include the term LLC

14:26

in the name of your company . So

14:29

officially in New Jersey

14:31

, I am registered as headshot

14:34

NJ LLC

14:37

, but on

14:39

documents , on business cards , it just

14:41

says headshot NJ , so

14:44

the LLC part does not have

14:46

to be included in the name of your company

14:48

. So after

14:50

you've chosen a name , here's

14:53

what you need to do . You need to

14:55

find your state's business filing

14:57

website , and that's just as

14:59

Easy as googling

15:01

how to file a business in Texas

15:04

, for example . Here

15:06

in New Jersey , we do business

15:09

dot njgov and From

15:12

there I Navigate

15:14

, and it's the same with most states . You navigate

15:17

through completing these online forms

15:19

that are relatively short . You're

15:22

completing forms with information about

15:24

your business , who owns it

15:26

, who manages it and the specifics

15:29

of the type of work that you do , and

15:32

that's because every specialty , for

15:35

example photography , has a code

15:38

or something called a sequence number , and

15:41

that number is associated specifically

15:44

with your business . You

15:47

also have to provide contact information

15:49

for the person who will receive legal

15:52

and official documents for your business

15:54

, and usually , if you're a photographer

15:57

, there's no one else to do

15:59

that stuff other than you . If

16:02

you're a two-person photography business

16:04

, you may be asked to complete

16:06

an operating agreement

16:09

, and that agreement clarifies

16:11

the roles of each partner . Once

16:16

you've completed all of your information and

16:18

paid your fee , you get something called

16:20

an EIN number

16:23

. Ein stands

16:25

for employer identification

16:27

number and your EIN number

16:30

is your unique

16:32

identifier for

16:34

your photography business . Every

16:36

business that is registered with a state

16:39

has an EIN number

16:41

, an employer identification

16:44

number . One

16:47

thing in addition to doing

16:50

this Within

16:52

your state , doing it at a state level

16:54

, you also have to check with

16:56

your local municipality

16:58

to see if Permits

17:00

or licenses are required

17:02

to Sustain

17:05

or to have For

17:08

your business some places

17:10

. You have to have like a little

17:12

certificate and has to be shown in a

17:14

public area in your business . So these

17:16

are just some nitty gritty things you

17:19

need to simply ask

17:21

about and comply

17:24

with . All

17:26

right , please , please

17:28

, please , do not make

17:30

the mistake of thinking that because

17:32

you do not have a brick and

17:34

mortar place to do photography

17:37

, like a studio or a

17:39

designated location for your

17:41

photography work , that

17:43

you Should not

17:46

file your business with your state . It

17:49

doesn't matter if you run your photography

17:52

business out of the trunk of your car , the

17:55

corner of your apartment , your

17:57

mother's basement , or

17:59

if you simply rent space to

18:01

space or you simply

18:03

photograph people in the park . You

18:06

should still file your business to

18:08

receive the tax benefits . As

18:12

I said earlier , here in New Jersey

18:14

, I'm required to submit an annual

18:16

report , which is essentially

18:18

my registration renewal , and

18:20

that cost me a hundred twenty five dollars

18:23

every year . Obviously

18:25

, the amount that you have to pay will vary

18:27

state to state and Will

18:29

also vary depending on

18:32

where you live if you are out

18:34

of the United States . So

18:36

, after filing

18:38

your business , you're officially

18:41

a registered business according to

18:43

your state . Here

18:45

are some things to help you run your

18:47

photography business like

18:50

a true business . You may

18:52

not agree with all of them , but I

18:54

believe if you want to be a pro

18:56

and you want potential clients

18:58

to see you as a pro , there

19:01

are certain things you need to have in order

19:03

. First , get

19:06

business insurance , or specifically

19:08

photography insurance , because there

19:11

is such a thing . Remember

19:14

that scenario a little while ago about

19:16

the person at the you know first

19:18

communion who trips . Well

19:21

, that

19:23

client trips . Or you know

19:25

somebody attending the event trips

19:27

and they sustain an injury . Again

19:31

, I'm sure you don't want to pay

19:33

their ER bill or their hospital bills

19:35

. You don't want to pay that out of pocket . So

19:39

you need to have

19:41

insurance that covers you as

19:43

a business . Get

19:46

your photography business

19:48

insurance , the

19:51

other reason you need business insurance

19:53

is for loss or damages to

19:55

your camera , your lenses or other photography

19:58

equipment . And , lastly

20:01

, if you're asked to photograph

20:03

an event at a venue , the venue

20:05

may require you to show

20:07

proof of insurance . I've

20:10

had to show proof at least four times

20:13

. It's wonderful when you know you're filling

20:15

out the form . As the photographer

20:17

for an event , you get the . Usually

20:20

, what happens is the form is sent to the person

20:22

who's running the event and they can

20:24

forward it to you , or or the

20:27

person at the venue will get your email

20:29

address from the person running the event and that

20:32

contact person will introduce themselves

20:34

and say , hey , we

20:36

need for you to fill this out , and one of the things

20:39

you need to fill out is proof of insurance

20:41

. Like you have to provide them with a copy . So

20:44

you know it's one thing to think , oh , you're gonna go photograph

20:47

a reception , or you're gonna go and photograph a sweet

20:49

16 , or you're Photographing

20:52

an event for a company , and then , a

20:54

few days before , somebody says , oh , we need a

20:56

copy of your insurance

20:59

and you

21:01

don't have it . That is definitely something

21:03

that you Should

21:05

have as a photographer . Here's

21:08

another thing that you need to do if

21:10

you want to be considered a real

21:13

business by your potential clients

21:15

, you need

21:17

to separate your finances and buy that

21:19

, and by that , by that , I mean

21:21

separate your business finances

21:23

from your personal finances

21:26

. Your business should have

21:28

its own accounts and , as

21:30

much as possible , use your

21:32

business's debit or credit

21:34

card to conduct business transactions

21:36

. You need to

21:38

find an app that allows you to easily

21:41

indicate that your purchases

21:43

or transactions were business

21:45

related and when

21:47

you conduct a transaction that results

21:49

in getting a receipt , put

21:51

that receipt and all other

21:53

photography related receipts

21:56

in one place and

21:58

, as a matter of fact , go one step further

22:01

and , either on an app or using

22:03

different folders Folders

22:05

be it digital or physical folders

22:07

Categorize your spending

22:09

. Categorize your business

22:12

spending Equipment versus

22:14

education , versus travel

22:17

, versus whatever and this

22:20

will make tax time so

22:22

much easier for you . If

22:24

you really want to make your business , your

22:27

business financial life , easier , choose

22:31

one day of the week in

22:33

which you sit down and you go through all

22:35

of your past weeks photography related

22:37

finances and you

22:39

categorize them . I know

22:42

it sounds like an

22:44

irritation and it can , but

22:46

if you do it every week , it's

22:48

really , really easy . You

22:50

get fast at it and when

22:53

tax time comes around , you have to Sit down to some

22:55

tables . You're gonna love

22:57

me for this . You

23:01

just have to commit to it . The

23:04

next thing that makes you a real

23:06

business to potential clients is

23:09

using your

23:11

business name . Just put that

23:13

. Whatever your business name is , you put

23:15

it to use . If you're going

23:17

to build a website or

23:21

have one built for you , use your

23:23

business name , and this

23:25

is actually something you should think about even

23:27

before you file the LLC or

23:30

file as an LLC . What

23:32

is your business name ? Your

23:35

email , your Instagram

23:37

, your Facebook and all

23:39

of your other social media accounts should

23:41

be named accordingly , so

23:44

that clients potential

23:46

clients can find you in all

23:48

places , all sites and

23:51

on whatever social

23:54

media platform you happen to be

23:56

on . My

23:59

official business name , as I said before

24:02

, is HeadshotNJ . My

24:04

email is mariabe

24:06

at headshotnjcom

24:08

. My Instagram should be

24:11

at headshotnj

24:13

, but

24:15

that name was already taken

24:17

. But you get the gist

24:19

of it . Whatever your name is , it

24:21

should be the same , be

24:24

it email or social

24:26

media . Next

24:29

, in this world of direct messaging

24:31

, it seems that we no longer

24:33

use phones for service-based

24:36

businesses , but if , by

24:38

chance , you do , I suggest

24:40

you get a dedicated phone line and

24:44

the best way to avoid having to purchase

24:46

a second phone or having to pay

24:48

for another line is simply go

24:51

to Google Voice and

24:53

sign up with no charge

24:55

to have a dedicated business

24:57

phone number . All

25:00

calls that go to that number will then

25:02

be forwarded to your personal

25:04

phone or to your

25:06

phone number , but

25:09

you will then have a dedicated business

25:11

phone or business phone number

25:14

for your clients . This

25:17

helps to make sure you appear

25:19

as a legitimate business with

25:22

a dedicated business phone

25:24

number . Next

25:27

, if you want to appear professional , conduct

25:29

your financial transactions

25:32

professionally through

25:35

some type of service such as PayPal

25:37

or Stripe or

25:39

something that lets clients know

25:41

you accept debit or credit

25:44

or what have you . Please

25:48

stop doing business

25:50

using Cash App

25:52

. It's just , it's

25:55

not professional . I

25:58

use Cash App too , but usually

26:00

I use it like my friends and

26:02

I are paying for something and you want to send

26:04

them the money , so

26:06

that you don't have a bunch of

26:08

people all paying for one

26:10

thing , so one person pays

26:13

and the rest of us we send

26:15

them our share of that payment

26:17

. Cash App for business

26:20

just doesn't

26:22

look good . It's

26:25

like saying , hey , I'm making money this

26:27

way , but I really don't want anyone

26:29

to know about it . Through

26:32

PayPal , stripe , clover

26:34

or whatever else you use

26:36

, you can send

26:38

your clients . You can send

26:40

potential clients quotes . Those

26:43

quotes can become invoices if they

26:45

agree to the quote , and you

26:47

can send them receipts for their payments

26:49

. Operate your business

26:52

like a business . If

26:55

you want to go one step further , purchase

26:58

or subscribe to a CRM , a

27:01

client relations management software

27:04

platform that

27:06

also allows you to send quotes , invoices and

27:09

receipts . But in addition

27:11

, you have an ongoing record of

27:14

all of your clients , of

27:17

all of your leads , and

27:19

you have the ability to develop standardized systems to

27:22

automate emails with reminders and

27:25

to minimize the going back and forth that

27:28

happens between photographer and client

27:30

as you try to

27:32

do things like set up a date for

27:35

a photo session . You

27:39

can send them proposals , you

27:41

can send them a

27:45

list of dates and

27:47

you can just take care of things . That way , you

27:50

don't have to go back and forth

27:52

doing email tags . Your

27:54

client gets a portal

27:56

where all of their documents

27:59

if you've done , if you do contracts with them what

28:02

you should , if you do contracts if

28:05

you they will

28:07

always have access to their receipts from

28:10

payments that they've made to you . It's ultra

28:12

professional . However

28:16

, I do have to say that

28:19

CRM's client relation management

28:22

software can be a little

28:24

bit on the pricey side

28:26

. You

28:29

can pay for them upfront , which is usually a

28:32

little bit less expensive , or you can pay for them monthly If

28:35

that works out better for you financially

28:37

. But just know , as with most things

28:39

these days , if

28:42

you make a monthly payment , when you multiply it by

28:44

12 , you're gonna find you're actually paying out more than

28:48

if you can possibly make one payment for

28:51

an entire year upfront . I would advise you to only

28:53

use CRM's again client

28:57

relation management software

28:59

If you have

29:02

a steady flow of clients because

29:05

, like I said , the subscriptions

29:08

can be pricey . The convenience

29:11

, however , is definitely worth

29:13

the money if you can afford

29:15

it , but it's only valuable if

29:18

you have a constant flow or you tend

29:20

to have consistent

29:24

bookings for your photography

29:26

business . So I use Studio

29:29

Ninja . I

29:33

tried it , I liked it . I've

29:35

used it for about three , I

29:37

think three , years now . I've

29:39

tried some of the others

29:42

before settling on

29:44

Studio Ninja . I think I've tried some of the others before settling on

29:46

Studio Ninja . I

29:49

tried 17 hats . I tried Tavo , I don't

29:51

know . There are a bunch

29:53

of them out there . There are a lot of them out there . There

29:56

are some that

29:58

are very small it's a sprout , I don't remember

30:00

but there

30:02

are some that

30:06

are pretty small and you think that kind

30:08

of gives you the better chance for

30:11

one-on-one service . If you have questions about

30:14

what you're doing , if you're interested in trying one

30:16

of these CRMs , what I suggest

30:19

is you look into

30:21

them when they have no

30:24

obligation trials , or

30:27

you can sign up , but

30:30

it's free for the first seven days

30:32

or something , and just make sure by day five

30:34

or day six that

30:36

if you don't want it , you

30:38

sign off of it so that you don't end up

30:40

paying that first

30:43

month's fee if

30:45

it's not something that works for you . But

30:48

go down the list of CRMs until

30:50

you find what really works for

30:52

you , what's manageable , what you

30:54

could customize to your

30:56

particular business . And

30:59

again , don't use

31:01

this if you don't have the

31:04

client's support to

31:08

really benefit from this . If you're getting one

31:10

or two clients a month or

31:15

something like that , like one client

31:17

a week , don't . This is not for

31:19

you . This is for people who have

31:21

like a constant

31:23

flow of clients and they

31:25

need to track down and make

31:27

sure they're well organized in terms of

31:30

what they've sent to

31:32

which client , just

31:35

so you know . No matter which one you

31:37

choose , it takes some digging to

31:39

find the one that's right for you

31:41

and there tends to be a learning curve

31:44

, even after you find the

31:46

one you like best . My

31:48

advice just stick to it . Once

31:50

you get it , you get it and it

31:52

becomes pretty fluid

31:55

and easy to manipulate as needed

31:57

. Using a CRM makes organizing

32:00

your clients , your payments

32:02

, your calendar and almost everything else

32:04

about

32:07

your photography business crystal

32:10

clear . Now , just a

32:12

moment ago , or just

32:14

for a moment , I wanna get back

32:16

to what many people consider

32:18

the true benefit of

32:22

being an LLC , and that's the tax benefit . The following are

32:24

a list of categories

32:27

that I've put together of

32:29

various tax deductions and

32:31

various expenses for photographers

32:33

that help lower your taxable

32:35

income . If

32:38

you do not take advantage I know I am preaching

32:41

, I'm

32:44

sorry , I said it before if you are a photographer

32:46

and you do not file as a bill and

32:51

you do not file as

32:53

a business and you do not conduct

32:56

your photography like a business

32:58

, you are throwing

33:00

money away . Here

33:03

are some of the things that

33:06

demonstrate that , because

33:08

these are things that you

33:11

can list as business expenses

33:13

when you do your taxes . If

33:16

you operate a business , if you operate

33:18

a photography business , if

33:21

you have filed as

33:23

an LLC okay

33:26

, things that are deductible

33:30

, things that are expensive . First

33:33

, equipment

33:35

and gear . You

33:37

can deduct the cost of cameras , lenses

33:40

, tripods , lighting equipment

33:42

, computers and other

33:44

photography related

33:46

equipment . And

33:49

you know what I just listed out . There is the

33:51

top of the iceberg , right , because

33:53

look at how much stuff you need . In

33:55

the past year alone , I've purchased

33:58

clamps

34:00

, different types of clamps , different types

34:02

of holders , I've purchased

34:04

cold shoes , I've purchased what

34:07

do you call

34:09

it ? Purchased new round

34:13

head speed lights . You

34:16

know you don't think you've purchased

34:18

a whole bunch of stuff , but when you sit

34:20

and you look , you

34:22

really do purchase a lot of stuff

34:24

to support your photography business

34:28

. So treat it like a

34:30

business All

34:33

right . So that's number one equipment

34:35

and gear . Number

34:39

two you can deduct for

34:41

business expenses . Business

34:43

expenses include costs associated

34:46

with running your photography business

34:49

, such as , when

34:51

you rent a studio , the

34:54

utilities that support

34:57

that studio , such as heat and

35:00

electricity , if you happen

35:02

to pay those . The

35:05

cost of your business insurance

35:07

is deductible . Your

35:10

office supplies and your internet

35:13

expenses are deductible . Again

35:15

, this is just the tip of the iceberg . These

35:18

are just examples . Number

35:20

three your travel expenses . If

35:24

you travel for photography assignments , you

35:27

can deduct expenses

35:30

such as transportation , transportation , lodging

35:33

, meals and

35:35

even part of your vehicle

35:37

expenses if you use your car

35:40

for business purposes . Number

35:42

four marketing and promotion

35:45

. You can deduct expenses

35:47

related to advertising , to

35:50

your website development , to

35:53

your business cards . You

35:55

can deduct for online marketing

35:57

and promotional material , such

36:01

as the samples you order

36:03

from your lab samples

36:06

for wall art , samples for prints

36:08

, samples for albums tax

36:11

deductible business

36:14

expenses . Number

36:17

five professional fees . You

36:19

can deduct the fees paid to

36:22

assistants that help

36:24

you in your studio

36:26

or the person who you pay to help

36:28

you lug stuff into

36:30

a studio you've rented your

36:33

retoucher , your

36:35

second shooter if you have a wedding

36:37

or a big event , the

36:40

models that you pay to pose

36:42

for you , to do your test lighting

36:44

or to just

36:46

try out a new technique or something

36:49

. Your

36:51

stylist and any

36:53

other professional you hire

36:55

for your photography and

36:58

for your photography projects

37:00

. Don't

37:03

forget your fee to

37:05

photography associations . That

37:08

may come up in another category . Number

37:13

six software and subscriptions

37:15

. You can deduct the

37:17

cost of photo editing

37:19

software Lightroom

37:22

, photoshop , capture One

37:24

, alien Skin or whatever it's

37:26

called now . All of these

37:29

are deductible . Number

37:32

seven education

37:34

and training . You can deduct

37:36

expenses related to photography

37:38

workshops , courses

37:41

, seminars and

37:43

other educational resources

37:45

that you use to help

37:47

you improve your photography

37:50

business , in

37:52

particular , all

37:54

of those educational tutorials

37:57

that you have paid for , downloaded

38:00

and haven't watched yet . Tax

38:06

deductible Number

38:09

eight your home office deduction

38:11

. If you use

38:13

a portion of your home , it has

38:15

to be designated for your photography

38:18

business . You cannot go in there

38:20

. That is my photography area

38:22

of the house . It has

38:24

to be specific . If

38:26

you use a portion of your home exclusively

38:29

for your photography business

38:32

, you may be able to deduct

38:34

a portion of your home related

38:37

expenses

38:39

such as rent

38:42

, mortgage , mortgage

38:44

interest , property

38:47

taxes and utilities If

38:51

you have a designated area for

38:53

photography within your home . Number

38:56

nine professional professional

38:59

memberships and licenses . You

39:02

can deduct fees paid for memberships

39:05

such as PPA or other

39:07

memberships and professional photography

39:10

associations and any

39:12

necessary licenses . Like I happened

39:14

to mention before that , some places require

39:17

you to have a license or

39:19

something displayed saying

39:21

something about who you are , what you

39:23

do and that your state has

39:25

essentially designated you

39:27

to do whatever you're doing . The

39:31

cost of that is deductible

39:33

. Repairs

39:36

and maintenance you can deduct

39:38

the cost associated with maintaining

39:40

and repairing your photography equipment

39:43

and your studio

39:45

space . So

39:47

, for example , there's a fan in my studio

39:49

, there's a ceiling fan

39:52

and it stopped working and I have to get an

39:54

electrician to come and take a look at it Tax

39:56

deductible . Lastly and

39:58

this one does not apply to a

40:01

lot of people , but

40:06

if you have a thriving

40:08

and I do mean a thriving photography

40:11

business and

40:13

you are able to pay for your healthcare

40:16

insurance based on

40:18

what you make as

40:21

a photographer , the

40:23

cost of your health insurance premiums

40:25

are also deductible

40:27

. And , ladies

40:29

and gentlemen , this is just the tip

40:31

of the iceberg . Truly

40:34

, if you do photography

40:36

as a business , you can claim

40:38

these and other deductions

40:40

, including your annual fee to register

40:43

as an LLC . You

40:46

can claim all of these when you

40:49

do your income tax . So

40:52

is it worth it to file

40:54

and be a business , be registered

40:56

as a business , definitely . But

40:59

again and I'm sure , like many

41:01

things , you guys are tired of hearing me say

41:03

, say this your business

41:05

has to be treated like

41:07

a business . So you see

41:10

, it is worth it , it is worth the time

41:12

and the effort , but

41:15

just remember , you

41:17

have to treat your photography as

41:19

a business . You need a dedicated

41:22

bank account . You

41:24

need to use invoices

41:26

, you need to use quotes , invoices

41:28

and receipts . You

41:30

need to limit your use of cash app

41:32

and remember that you don't need a brick

41:35

and mortar building to take advantage

41:37

of business tax advantages

41:40

. You can operate

41:42

your business on the road , on the side

41:44

of the road , out of your car , in a corner

41:46

of your home , as long

41:48

as you operate your photography business

41:51

like a business . So

41:55

it's very important we're

41:57

coming to the end here but it's very important

41:59

that you

42:02

comply with tax laws and

42:04

regulations , which can change

42:06

over time , and it's rare that

42:08

people are aware of these changes . It's

42:12

rare that the average person is aware of these

42:14

changes . So it's important

42:16

to stay informed and

42:18

consult with a tax professional

42:21

or an accountant to ensure you're taking

42:23

advantage of all the deductions

42:25

that you are eligible

42:28

for as a photographer

42:30

. Remember

42:33

, you definitely want to conduct proper

42:35

record keeping . It's

42:37

a crucial part of providing documentation

42:40

for deducted expenses

42:43

in case you're audited

42:45

. No funny stuff . Okay

42:49

, as

42:52

I end this episode , I just want

42:54

to say the following . You

42:56

know there are some episodes that kind of stand out

42:58

to me as being important . They're

43:01

not just fun , they're not just informative

43:03

, they're really important and

43:06

I'm going to tell you that this episode , this

43:09

episode on making

43:13

your photography your business , is

43:16

one of the most important ones , because

43:19

I think it shows you what

43:22

the potential is if you run your photography

43:25

like a business

43:27

. You make photography friends

43:30

when you're in this or photography acquaintances

43:33

, and I look at the way people do business and

43:35

by no means am I saying I am great

43:37

at this , because I'm not but

43:41

I look at the way people conduct their

43:44

business and

43:46

it's just like why

43:48

don't you give yourself upper hand

43:50

here ? How much

43:53

effort does it take to

43:56

just go online and file and

43:58

be a business ? Stop

44:02

doing your business like in the corner

44:05

, like you're doing your business

44:07

on the alley , in the alley . Let

44:09

me , you know , let me bring out my phone . You

44:11

can cash out me , I'll do , I'll do your shoot

44:14

on Tuesday . Like , really , really

44:17

, come on , guys , we're

44:20

better than this . We are

44:22

so much better than this . You

44:24

know , a couple of people I've

44:27

followed over time have said

44:29

that when

44:31

photographers or , as they call them

44:33

, so-called photographers know , when

44:36

photographers conduct themselves

44:38

in a way that is

44:40

not becoming of the profession

44:43

, it helps to bring all of

44:45

us down . And

44:48

that's one of the reasons why and again

44:50

, like many things I've talked about them

44:52

before but that's what makes pricing

44:55

such an issue for us , because

44:57

we have photographers

45:00

who are charging hundreds

45:03

and thousands of dollars for

45:05

their products and for their services

45:07

and then you meet somebody who

45:10

you know , for 200 bucks you'll

45:12

get all the photos that I took

45:14

and the digital . You know you'll get the digital's

45:16

, you'll get all the . And

45:19

it makes it

45:21

harder for the rest of us . It's

45:24

hard for me to conduct business

45:26

when

45:29

I've got photography friends taking

45:32

cash out payment

45:35

for $125 after

45:38

you know , I

45:41

want to say like after doing a photo shoot

45:43

. But I've met

45:46

people who , like they don't even discuss

45:48

the cost , they don't discuss the price

45:50

before they have the client in front

45:52

of the camera and

45:55

at the end of the shoot the client says

45:58

to the photographer

46:00

oh , what do I owe you ? And then what are you going to

46:02

say ? Right

46:04

, like you can't give a realistic

46:07

number , which is that , well , just

46:09

booking the session and photos

46:12

is like 300 , 400

46:14

, 500 , whatever . You

46:16

can't say that now because

46:22

no one's going to believe you . You

46:25

must conduct your business like a

46:27

business , and the

46:31

only person I'm criticizing here is myself

46:33

, because I've been down that road . I've

46:36

been down that road that has led me to where

46:38

I am now , and it's a road

46:40

I don't want you guys to go down , which

46:43

is you

46:45

think that by

46:47

lowering your prices , by

46:51

charging less

46:54

than the guy

46:56

down the street . You're

46:58

going to get more clients , you're going to get more

47:00

business . You're

47:03

going to take that $50 for those 100

47:06

digital and

47:09

you're going to accept it by a cash

47:12

app . You're going to do that . And

47:14

then when somebody comes to me and I say , well

47:16

, if you want a custom album with

47:18

30 photos , it's going to cost you such

47:21

and such and such . And they're like what

47:23

? Because

47:27

you've already trained them that they can get photos

47:29

for next to nothing . Accept

47:32

your photography business like

47:36

a business . Be

47:38

militant about that and I hate to

47:40

say that I don't even like that word but be

47:43

militant about it . It's a business

47:45

. If

47:47

it's not a business , don't buy $1,000

47:50

cameras and $1,000 lenses

47:52

. Don't do it . When

47:56

I see somebody I

47:59

recently met someone who

48:01

was using a camera the poor girl couldn't

48:04

even operate it I'm like where's

48:06

this ? Where's this ? Because I'm trying to help

48:08

her out and she doesn't know it was a really

48:10

I don't want to say

48:12

, but it looked like a camera that was more

48:14

than like I don't know , $3,000 or $4,000

48:17

that you can't even operate . How

48:20

do you think she's conducting her business ? I

48:24

really I just want us

48:26

all to rise

48:28

up together to elevate

48:31

in this world of photography

48:33

and business together . So

48:35

treat your business like a business and

48:40

tell your photography friends

48:42

to treat their business like a business

48:44

so that we all

48:47

stand up and we

48:49

all make what we deserve

48:51

for the amount of work we put into

48:54

delivering beautiful

48:56

photos for our clients

48:58

. Treat your business

49:01

like a business

49:03

, thank

49:05

you . Thanks so much for listening

49:08

to this episode of Clued Up with Me

49:10

, your host , maria B . If you've

49:12

enjoyed this podcast , please be sure

49:14

to rate , subscribe and review on

49:16

your preferred podcast listening platform

49:19

. I really appreciate your support . When

49:21

you rate , subscribe and review , you're

49:23

also helping other listeners find and

49:26

enjoy this podcast . Until

49:28

next time .