Professional wedding photographers are still individuals with lives outside of their business. If you run a photography business, consider setting up an LLC for photography operations. We believe in the importance of separating your business from personal assets for protection in case something happens during an event.
In this post, we discuss everything you need to know about setting up an LLC for your photography business. Whether you specialize in covering weddings or not, understanding the importance of LLCs for you and your business can be the difference in your success in the long run. Take a look.
What Is an LLC?
LLCs, or limited liability companies, are business entities that you create at the state level to provide limited liability protection. That means that you are not personally responsible for the financial losses or debts of your photography services.
Benefits of Starting LLC for Photography Operations
Some benefits associated with starting an LLC for your wedding photography business include the following.
Protect Your Personal Assets
Setting up an LLC for photography operations is a great way to separate yourself as an individual from your business. That way, you safeguard each one efficiently. If any lawsuits or claims arise out of your photography services, only your business will pay.
For example, suppose you set up an LLC for your photography operations. You cover an event, but someone sues your business, claiming that you did not fulfill your end of the deal. With an LLC in place, the lawsuit would be against the business, not you personally.
All your personal assets will be safe. Meanwhile, creditors will only claim business assets when necessary. They cannot take anything of value to pay for damages associated with the event from outside of your business.
Enjoy Tax Benefits
Many states tax LLCs as pass-through entities, just like partnerships or sole proprietorships. If you own a wedding photography LLC, all of its profits and losses pass through the business to you as the owner. You can also elect to be taxed as an S Corporation which is a common recommendation by CPAs to save on your federal taxes (aka keep more of the money you make).
Build Your Credibility
Successful wedding photographers are trustworthy. After all, engaged couples will want a trustworthy professional to cover one of the most important moments of their lives. When you separate your business by setting up an LLC, you are establishing credibility.
Clients will recognize that your LLC for wedding photography operations are legitimate and professional. This makes them more likely to trust you instead of photographers with no processes or documents in place.
Furthermore, LLCs can use their credibility to apply for business loans. When lending companies trust you enough for disbursement, you can take steps to grow your wedding photography business.
How To Start an LLC for Photography?
The steps for starting an LLC vary per state. Generally, you would go through these steps:
- Name your LLC: Your wedding photography LLC must have a unique business name.
- Get a registered agent: You can be your LLC’s registered agent or hire a third-party service to oversee the legal side of your business.
- Register your LLC: You must file Articles of Organization with your state secretary online or by mail.
- Create an operating agreement: You will need this legal document, which outlines LLC ownership and your operations.
- Get an employer identification number: The IRS will assign a unique EIN to your LLC.
Get Started: Gather Legal Templates To Set Up Your Photography LLC
Setting up an LLC for your wedding photography business can be beneficial for your company’s growth. Setting up an LLC allows you to separate your business assets from personal assets while enjoying tax benefits that would otherwise be unavailable if you run a corporation.
When you are ready to set up an LLC for wedding photography operations, expect to prepare several legal documents. Consider investing in legal templates for photographers to save time and effort.
At Drafted Legal, we prepared essential templates for photographers who are interested in setting up LLCs for their businesses. Legal experts have reviewed each template, ensuring that you fulfill all requirements. You can also customize each template to meet your needs.
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