Legal Requirements for Becoming a Commercial Photographer (in Wake County, North Carolina)
Ever wanted to be a photographer but not sure where to start? Or maybe you’ve done it as a hobby for a while and now you’re ready to go legit. Or even if you’re already a photographer and you want to make sure you’ve checked all the boxes? This article will help you learn what you need to do and how to get your photography business started on the business side of things.
Disclaimer: I do not have a business or law degree. I am just a stay at home mom who wanted to be a photographer and who had to do a lot of digging to find out these things on my own. Researching these matters is a time-consuming and often frustrating task, which is why I feel many photographers neglect the legal niceties of establishing their business. I was always taught, though, that if you are going to do something, then you should do it right, and that involves being honest in all your dealings. Laws and requirements may change over time and location, making this article inaccurate. If you need help getting set up, I highly recommending getting in touch with your local chapter of SCORE (originally Service Corps of Retired Executives) and find someone who could mentor you and help you with what you need. And you should consult with an attorney.
Figure out what type of business you are and register and obtain an EIN
I personally registered and operate as a LLC, or a Limited Liability Corporation, but there are several options open to you. You could operate as a Sole Proprietor, which would make filing taxes a bit easier, but then your personal assets could be seized to satisfy a business debt or a successful legal claim filed against you. A LLC keeps your business liabilities confined to the business. You do have to file articles of organization with the N.C. Secretary of State, which costs $125 and then an additional $200 for renewal every year. Once you’re a registered business don’t forget to apply for your Employer Identification Number (which is like a social security number for your business) from the IRS, which you’ll need for several businessy things.
Privilege license
I personally think this is a little silly, but if you’re doing things the legal way you’re going to need your privilege license. There are several different occupations in North Carolina that require these, and photographer (and photographer’s assistant) is one of them. It has to be renewed every year starting in July. This baby will cost you $50 that goes straight to the NC Department of Revenue.
Sales Tax Permit
As a photographer you’re going to have to charge sales tax (varies depending on city), and because the government doesn’t want to make it too easy for you to collect money for them you’re also going to need a Sales Tax Permit. This is easy enough to get, but just make sure you get it, otherwise you can’t actually give to the government the sales tax you collect. That makes you liable for tax fraud with intent to embezzle (though they don’t have to prove intent), which is a felony. Ouch!
Commercial use permit
Depending on where you hold your outdoor photo sessions, you’re going to need a commercial use permit. I obtained one from Raleigh Parks and Recreation Department, which makes it legal for me to shoot in any of the numerous beautiful Raleigh City Parks. There is a fee associated with the permit, and you do need to be insured against any damage you or your clients may do to the park. If you shoot on your own private property or somewhere else, you may not need a commercial use permit, but being insured is still a really good idea.
Separate Business Bank account
Keeping track of finances is hard enough without mixing your personal account with your business account. Keep It Separate, Sweetie! I don’t know if you’re legally obligated to have a separate account if you operate as a SP, but it’s the smart thing to do. There are several great banks and credit unions in the area. Since I didn’t have a lot of money coming in when I first started, I chose the only bank I could find that didn’t have a monthly charge for its business accounts. Assess your needs at least annually and be willing to change financial institutions as your business grows.
Congratulations on starting your photography journey, and good luck! I hope reading this gave you an idea of what you need to do to get started off on the right legal foot. Happy and safe shooting!
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Helpful Links (due to change over time these link may no longer be valid):
SCORE: https://www.score.org/
NC Secretary of State Business Registration: https://www.nc.gov/services/starting-business-nc/business-registration/business-registration-secretary-state-filing
EIN Application: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
NC Privilege License: https://www.dornc.com/downloads/privilege.html
NC Department of Revenue Sales and Use Tax Information: https://www.dornc.com/taxes/sales/
Raleigh Commercial Use of Park Property: https://www.raleighnc.gov/parks/content/ParksRec/Articles/ParkCommercialUse.html