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Question from Sherrie: ‘I have become more involved in photography over the past 2 years now and my clients are growing. I don’t have a tax id yet and I am not sure if it is still considered a hobby or if I make more and need to claim taxes. Is there a good book or place I could go to get answers. I don’t plan to have a studio, but I do want to make sure I am protected. Any suggestions would be helpful. Thanks!”
Jess: commenting so I can follow
Jodie: Me too.
Vicky: registered with the tax once I started making money not worth getting caught out
Tyann: Best thing to do is to talk to your accountant as far as at what point to officially start your business as far as taxes go. You should be claiming the income as a hobby on your taxes anyway…
Amanda: My accountant told me to look it up under my state government website and it listed what needed to be taxed & what did not. 🙂 I started as a hobby & got a tax id # as soon as someone started paying for my services.
Kelsey: I can ask my husband when he gets off work. He’s an accountant so he’d know!
Bria: I am in the same boat…curious to see what others have to say!
Amie: And a Federal id is free
Justina: What Amanda said is exactly what I was going to say!
Teresa: Go to your state’s Department of Revenue website. Ours has a separate section just for small businesses… and tells you everything that you need to do to be a legal business. 🙂 Good luck! 🙂
Jessi: Here’s some info about claiming it as a hobby vs business: http://www.irs.gov/uac/Business-or-Hobby%3F-Answer-Has-Implications-for-Deductionsv
Krystle: curious to kno too 🙂
Heather: I’ve been curious as well!
Alicia: GET INSURANCE! for your equipment and liability on a shoot! It’s not that much/hassle to add it to your homeowners or car policy but it will save your life if something happens – even if you drop your camera bag and your $$$$ equipment breaks!
Cassandra: Great info
Ashley: Wouldn’t it be nice if all counties were the same? This stuff is very confusing.
Andrea: Wondering the same
Sherrie: Yes I got insurance on my equipment mine was 2.50 a month. Well worth it just in case. Thank you so much for the great advise!
Nicole: really need to look into this as well. Gonna schedule some time with our accountant. 🙂
Caitlin: Following!
Amanda: Where I am from you are not required to have a tax id or charge taxes unless you reach a certain gross profit bracket so just check with your state/province legislation
Charity: Can you get the insurance separate from other stuff? My truck is still on my parents insurance and the house is under my fiancé. I think I was also told once that you can get insure through professional photographers of America if you are signed up with them?
Sabrina: Curious as well!
Sarah: IRS.gov has info that can help. I believe if you are promoting your business it that is one of the factors
Ashley: Following
Michelle: Please if your going to get insurance (which every business should have the second the business opens) get a commercial policy that has higher liability limits (minimum of $1/2/2m limits) don’t skimp out on professional liability either! You can either schedule in your equipment or do a lump some amount to cover everything. Its worth the cost to protect yourself.
Hollie: Following
Devi: great question… following 🙂
Rick: not sure about American but I know here in Ontario Canada (for that live here and are not sure) You still have to claim it as income hobby or not but you do not have to have a tax id (here it is an HST number) and you don’t have to pay taxes untill you reach $30k/year.
Sherrie: Ihave personal article insurance for my camera covers for only part time use.
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