Photography Business LLC: What to Know When Turning Your Hobby Into a Business
For the longest time, I’ve always wanted to start a photography business or a business in general. I ended up purchasing a Canon R6 from Facebook Classifieds. Yes, my mom tagged along with me to make sure it was legit.
I was charging anywhere from $50-$100 per session. I’d say that is pretty good. I knew it was important to charge for my gas + travel at least.
At the time, I was in school for finance, where most of my classes consisted of numbers, obviously. Then I got a minor to help me with the business side.
That’s when I officially made the leap and turned my photography business into an LLC. If you’ve recently done the same (or are thinking about it), here are some things I’ve learned.
Photography LLC vs Sole Proprietor
Reach out to an accountant; they will help you decide what the best option is for your situation. They can help with the photography business's legal setup, and they’re helpful for business taxes
It is good to do your research. Some will say that you could start as a sole proprietor, which means that if someone were to sue you, they’d go after your personal assets (house, car, etc).
That is why I decided to go with a Single Member LLC (which, technically, to me, is a sole proprietor, but it helps protect your personal assets). As long as you keep your personal & business finances separate.
I knew that it would be best to start with an LLC.
2. Separate Your Business & Personal Finances ASAP
I’m a big believer in doing things legit when you’re offering a service to someone — because you truly never know. That’s why separating your business and personal finances is so important.
Once you form an LLC, you’ll want to register with the IRS and obtain an EIN (which is essentially a Social Security number for your business). This step makes it much easier to open a business bank account and keep everything organized.
I definitely don’t know everything, but one thing I wish I had researched more early on was my business banking. I originally opened my business account at a local credit union, thinking it was the best option. It worked — but after discovering Found Business Banking, I realized it fit my business needs so much better, and I wish I had started with it sooner.
What I love most about Found is the ability to create multiple pockets. You can automatically allocate deposits for things like taxes and sales tax, instead of manually transferring money after every session. It’s been a huge time-saver and has helped me feel more confident about staying on top of my finances.
No pressure at all — but if you’re considering signing up, you can get $20 using this link, and I receive a bonus as well.
3. You’re Now Responsible for Taxes (Even if you were before)
As a photography LLC, you’ll need to:
Set aside money for self-employment taxes
Track income and expenses
Possibly make quarterly estimated tax payments.
I am to save 20-25% of every booking. This is where Found has been so helpful. It automatically deposits each booking deposit.
4. Contracts & Insurance Matter
I cannot emphasize more about having a contract with everyone, even family friends or family. Miscommunication can happen, and that is why you need to have it documented. Trust me, you don’t want to go down this rabbit hole.
At a minimum, photographers should have:
Client Agreement
Cancellation/Reschedule Policy
Liability Insurance
An LLC helps protect you legally, but contracts protect your time, income, and sanity.
5. Treat your Photography Like a Business (Because it is one)
This shift is more mental than anything else.
That means:
Pricing for profit (I recommend reading Profit First)
Tracking expenses (like mileage for tax deduction, I personally use MileIQ).
Looking for more tips? I wrote this blog post, “The Tools That Help Me Run a Smooth + Stress-Free Photography Business.”
Contact Me
If you have any questions or concerns, feel free to contact me here. I’d love to help anyway, I can.
THE MOST COMMON QUESTION I GET ASKED IS MY CAMERA GEAR… ENJOY!
This post may contain affiliate links & I will be compensated if you make a purchase after clicking on my links. If you buy through them, I’ll earn some cash for Starbucks (or Ice cream). But don’t worry, I’ll use that energy to create more helpful content for you!
