Starting a Photography Business
This post is a bit overdue, but I still wanted to share this information with you.
I wanted to share everything that went into starting this business, as it was a bit of a roller coaster and an intimidating process, and I thought maybe if I shared how all this became it would give others insight as to what they need to think about before they create a business or maybe this will help others to not feel as intimidated by the process.
So first of all, I had no idea where to start. My mind kept going around in circles, mainly trying to figure out what platform I was going to share and sell my photography and the legal side of things that are needed when starting a business. I started out thinking one platform (not going to name this platform) would be a great place to start, I literally had most of my store set up and was about to upload my photos to sell. Then I got cold feet after reading more into this particular platform and other seller’s experiences and I decided it would be best to just go my own way and create an online store of my own. By doing this I would have full control over my business, and also be able to share more of my journey with you through my own website. In the interim I was creating my canvases on a Print on Demand (POD) website, which would print and ship my items to my customers. I also ordered all of the photos in my store to make sure that they looked okay for everyone to purchase and nothing looked out of the ordinary. Once I had done all of this, I began creating my website. However, there was also the legal hump I had to get over.
Since I had no idea where to start with this, I talked with an attorney first. Long story short, I found out that I did not have to get a business license to sell my photography, because the State of Minnesota does not require this at this time. The attorney did suggest that I talk with the State and/or Tax Professional on what I need to do next, tax wise. So I reached out to that State and they stated that I would need to do a list of things to get started. I figured I would wait and reach out to a tax professional once I started getting sales as I did not have any sales at that time.
This is what the State of Minnesota suggested.
I needed to choose a name for my business and to use the USPTO website to make sure no one else already had the name I wanted to use for my business.
Once I figured out step number one, then I needed to register with the Secretary of State’s Office. I fortunately was able to bypass this part as I used both my first and last name within the name of my business.
I needed to Register with the IRS to obtain a Federal Employer Identification Number (EIN).
If I was selling taxable goods (which I am) I needed to register for a Minnesota State Tax ID. They also told me that I would have to set up my website to charge Minnesota State Tax to my goods, which thankfully the website I am using integrated a tax system. I just had to add in some info and it applied Minnesota Tax to my products, which will be applied when a Minnesota customer purchases an item. I did not have to add tax to those out of state purchases, as I have not reached an economic nexus in other states other than Minnesota. (Believe me this was a confusing process to figure out)
I would need to contact my City and County to see what guidelines I needed to obey per their requirements and regulations. Fortunately, being I am conducting an online business I would not have to pull a permit, however, if I decided to sell physical products out of my home, garage, shed and what have you, a permit would be required.
Once I got all that figured out, I decided I would open a business bank account specifically for my business in case anything was to go awry, then it would not be tied to my personal bank account. Also, this way it will be easier to keep track of funds.
Once all this was said and done, I could officially launch my business. There was a lot of back and forth with this set up, it seemed like once I thought I was ready to launch, something else would pop up and would delay opening. Although there were speed bumps along the way, I have learned a lot about opening a business and I am sure I will learn even more throughout the process.
If you are thinking about opening a business make sure to contact your state, county and city to abide by their regulations or if you are located in another country I would reach out to whomever you need to, to get the appropriate information you need to open your business. You may even want to reach out to an attorney as well to make sure there are not other legal requirements that you will need to abide by. Also, come tax time or when you start to get sales, you may want to get in touch with a CPA or Tax Professional to go over what you need to do to report and keep track of.
I hope this was some useful information on what goes into a Photography Business and specifically a Photography Business in Minnesota. I do want to also state that the information given is for informational purposes only and I am not trying to give anyone legal advice nor am I a legal professional.
Cheers!
Vanessa
