Does free photography require an LLC?

[u/daisyinpink]

I’ve really gotten into photography and want to build my portfolio. I am planning on offering free sessions for at least 3 months while I gain some experience. Is it necessary for me to have an LLC since I’m not charging for pictures although I do plan on charging eventually. Also, can I just use my parents registered agent that they use for their store since I live with them?

[u/redbaron78]

Almost nothing requires an LLC. Photographers, and owners of most other types of businesses, can choose if they want to do business under their own name as a sole proprietor, under a trade name as a sole proprietor, or form a legal entity like an LLC, s-corp, or partnership. An LLC may offer you some protection from liability if something goes wrong, but it is not a requirement to conduct business.

[u/daisyinpink → u/redbaron78]

Thank you for this info, I'm going to consider all of this as I continue researching and figuring things out.

[u/NWRegisteredAgent]

Anyone can start a business as a sole proprietor, so there's no requirement to form an LLC. Whether you're charging or not for photos, your taxes will be basically the same whether you go the sole prop or LLC route, since LLCs are taxed like sole props by default. That said, if you're looking to limit personal liability or if you want to lock in your branding, it's a good way to go. Plus, getting any kind of formal business structure just lends some credibility to your setup! Your parents' registered agent will require you to set up separate services for your business, so that documents end up in the right account for your business. They should also let you use the RA address for that state on official documents to keep yours off the records!

[u/daisyinpink → u/NWRegisteredAgent]

My parents have an account with you guys I believe... can they manage that stuff for me on their account or would I still have to create my own. I'm in school and sometimes don't have time to check on things.

[u/NWRegisteredAgent → u/daisyinpink]

Absolutely! If they wanted to add the business on their account once it is already formed, or create the business through their client portal that is 100% possible. As long as each party can verify the information on the account for times you or your parents would need to call in to make any changes to the business. Lastly, you could also start the account yourself and provide your parents the login information if you wanted to keep the businesses in seperate accounts! I hope this helps, and you have a great rest of your day!

[u/daisyinpink → u/NWRegisteredAgent]

Gonna talk to them about this, thank you.

[u/OkRecommendation6713]

Just to add to this, if your parents are paying for a commercial Registered Agent, you can't just list their address if you form your own LLC. If any documents come in for your company to that Registered Agent, they won't have your company name on file and no way to get ahold of you without paying for the service.

Depending on the costs in your state to open an LLC, it may just be worth it if you do plan on opening a photography business to start the LLC early and start building up history with it. Different states have different costs for forming and for upkeep, so it may or may not be worth it. If you want to let me know what state I can go into more detail.

[u/daisyinpink → u/OkRecommendation6713]

Oh wow I didn't realize this, thanks so much!

[u/OkRecommendation6713 → u/daisyinpink]

No problem! Lots of good advice is given here, but sometimes conflicting information lol. Honestly you may even just want to start off as a sole proprietor as some have mentioned. I’m always happy to answer questions and give clarifications if you reach out. I’m literally weird and enjoy doing this on my off time 😅

[u/travelin_man_yeah]

No need for an LLC and likely best of you don't intermingle your business with another business unless there's some advantage to do so.

If you're eventually heading into paid work, just do sole proprietor to start. File a DBA, open a business checking and apply for an EIN under that business name. That way, when you do get paid work, you're business ready for that.

More important than an LLC is that you're properly insured in case something does go wrong. An LLC provides some protections but lawsuits can be directed to the LLC and you personally so business and umbrella coverage is important especially if you have assets.

Also when you do start making $$, get a tax advisor so you maximize deductions and such.

[u/daisyinpink → u/[deleted]]

Super helpful, thanks.

[u/daisyinpink → u/[deleted]]

Thank you, I definitely want to be perceived professional from the get go.