How to Start a Photography Business in California - howtostartabusinesscalifornia.com

Thinking about starting an LLC in California? We’ve got all the details you need.

Begin by selecting a unique business name, appointing a registered agent, and filing your Articles of Organization with the California State Corporation Commission, which includes a $100 processing fee.

You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 75% of our readers and hire a specialized California LLC formation service (recommended).

Zenbusiness (Starting at $0 Plus State Fees)

Northwest ($39 + State Fees)

There are 6 steps involved in turning your hobby of taking photos into a full-fledged business. Below, we have explained them in detail.

Step 1: Select a Business Type/Entity

The first thing you need to do is figure out how you want to structure your photography business. Each structure has different implications for taxes, liability, and management. Here are the different types of businesses you can form:

1. Sole Proprietorship Photography Business

Simplest and Quickest to Set Up: Sole proprietorship photography requires no formal registration. Generally speaking, you only have to obtain a business license if mandated by your city/county.
Low Cost: No additional fees beyond potential licenses and permits.
Full Control and Profits: All business decisions and profits belong to you.
Unlimited Liability: You are personally liable for all business debts and liabilities.
Limited Growth Potential: Difficult to raise capital or attract investors.

2. Partnership Photography Business

Shared Ownership and Liability: Can partner with another photographer to share resources and expertise.
More Complex Than Sole Proprietorship: Requires a partnership agreement outlining roles, responsibilities, and profit sharing.
Still Personally Liable for Business Debts: Each partner shares liability depending on the partnership structure.
Potential for Disagreements: Requires clear communication and collaboration to avoid conflicts.

3. Limited Liability Company (LLC) Photography Business

Balance of Ease and Protection: Benefits of an LLC for a photography business are mainly that it offers flexibility in management structure and limited liability for owners.
Requires a Lot of Work: You have to fill articles of organization with the state, making it more complex than a sole proprietorship but simpler than a corporation.
Moderate Cost: Filing fees and potential annual reports might incur costs.
Pass-Through Taxation: Profits/losses pass through to owners’ personal tax returns.
Professional Image: Creates a more established business image compared to a sole proprietorship.

4. Corporation Photography Business

Most Complex Structure: Offers greatest protection from personal liability but requires more formalities.
Requires Even More Effort: You have to fill articles of incorporation, create annual reports, and hold board meetings.
Higher Costs: Filing fees, potential legal fees, and annual compliance costs are higher.
Separate Legal Entity: The corporation owns its assets and is liable for its debts, protecting owners.
Double Taxation: The corporation pays taxes on profits, and owners pay taxes on dividends received.

What Type of Business Is Photography Considered?

Photography businesses generally fall into a number of categories; understanding this may help you develop your business plan. Here are some of the most common ones:

Creative Services: This applies if you primarily offer photoshoot sessions, editing services, and deliver tangible outputs like prints or digital files. This aligns well with sole proprietorship or LLC structures.

Art & Crafts: If you sell physical prints, framed photographs, or other art pieces derived from your photography, your business could be considered art & crafts.

E-commerce: If your main offering is digital products like presets, online courses, or stock photos, your business leans towards e-commerce. LLC or even a corporation might be suitable for scalability and potential intellectual property protection.

Hybrid: Many photographers blend these categories, offering various services, products, and online content. Choose the structure that best reflects your primary focus and future vision.

Can I Run a Photography Business From Home?

If you’re wondering how to start a photography business in California online so you can work from home, follow the steps below:

Build a professional website and make the best of social media to showcase your work and attract clients.
Implement safe and secure methods for clients to pay for your services or products online.
Explore online marketing strategies like SEO, social media advertising, and content marketing to reach your target audience.
Ensure safe storage and management of client data and images, complying with relevant regulations.

Step 2: Reserve and Register Your Business Name

The next step is to reserve and register a name for your photography business.

1. Name Availability Check

First, you need to check if the name you want for your business is available in California. Here’s how you can do that:

Use the California Secretary of State Business Search tool to confirm no identical or confusingly similar names exist.
While optional, you should consider conducting a trademark search through the United States Patent and Trademark Office as well.

2. Name Reservation (Optional)

While not mandatory, reserving your chosen name offers temporary protection for 60 days. All you have to do is file the California Secretary of State Name Reservation Request form and pay a $10 fee.

3. Business Registration

The process of business registration depends on your chosen business type. Here’s how it works for each business structure:

Sole Proprietorship: If you haven’t obtained one already, acquire a business license from your city/county if required.
Partnership: File a partnership agreement outlining roles, responsibilities, and profit sharing among partners.
LLC: File articles of organization with the California Secretary of State. Fees and annual reports will probably apply.
Corporation: File articles of incorporation with the California Secretary of State. This involves more formalities and higher costs compared to an LLC.

Throughout this process, you need to make sure that your chosen name complies with California naming regulations. If operating under a name that’s different from your legal name (e.g., “Sunshine Photography” instead of “Sarah Jones’ Photography”), file a Fictitious Business Name (FBN) or Doing Business As (DBA) Statement with your county clerk.

Step 3: Choose a Registered Agent in California

If you’ve decided to organize your business as an LLC or corporation in California, your next crucial step is to designate a registered agent. This is a mandatory step when preparing your Articles of Organization, the document required to officially register your LLC or corporation with the California Secretary of State.

So, what is a registered agent’s role? A registered agent is an individual or business entity responsible for receiving critical documents on behalf of your business, such as tax forms, legal notices, lawsuits, and official government correspondence. Essentially, your registered agent acts as your business’s main point of contact with the state.

Who qualifies as a registered agent? The registered agent must be a California resident or a corporation authorized to do business in the state, such as a registered agent service. If you wish to act as your own registered agent, you must appoint an individual within your company, as California law does not permit business entities to serve as their own registered agents.

For more specific information on the requirements for registered agents in California, refer to the California Corporations Code.

Don’t forget that to run a business, you need to: register a business entity (LLC is the most suitable option, more details here), obtain an EIN (you can apply online here), open a business bank account (more details here), understand accounting and taxes (more details here), and register a domain and create a website (this is optional, you can do it here).

Alternatively, you can delegate all of this to a registered agent starting from $0 + State Fees and get everything done in 1 day. This can save you time and ensure everything is done correctly, leaving you to focus on growing your business.

Apply Online

Step 4: Open a Business Bank Account

Next thing you need to do is open up a bank account for your photography business. Not all banks are created equal, so look for ones that offer features relevant to your needs. These needs might include low monthly fees, online banking, mobile banking, business debit cards, and merchant services (if you accept credit card payments).

National banks are great for wider accessibility, while local banks may be better if you want personalized service.

Then, you should prepare the following documents:

Proof of Business Registration: If your business is a sole proprietorship, you’ll need a business license (if required by your county) and a government-issued ID. If it’s a partnership, then you need partnership agreement and IDs of both partners. For LLCs, you need articles of organization and operating agreement (if applicable), EIN (Employer Identification Number) from the IRS, and individual member IDs. For corporations, you need articles of incorporation, bylaws, EIN, and individual officer/director IDs.
Proof of Identity: Government-issued IDs for all owners/signatories.
Opening Deposit: The amount varies by bank, but make sure you have access to a sufficient amount of funds.
Business Plan: While not always required, some banks may ask for it.

Once you have found a bank that meets your needs, you need to schedule an appointment with a business banker. They can guide you through the process of opening an account for your business.

Then, discuss your business needs and choose an account type that fits your transaction volume. Common options include basic business checking, business checking with interest, and merchant services accounts. Fill out the bank’s application form and review the account agreement carefully before signing.

Finally, make your initial deposit to activate the account.

Make sure you discuss potential fee waivers or discounts, especially if you anticipate high transaction volume. At the same time, you may want to consider linking your business checking account to a business savings account for earning interest on unused funds.

You also need to ensure the bank offers robust online banking features for managing your finances conveniently. This includes mobile banking apps with on-the-go access and online management of your account.

Step 5: Be Aware of Taxes Imposed on Photography Businesses in California

Photography is taxable in California, and it’s essential to comply with all regulations. Here are some of the taxes you may be required to pay:

Federal Taxes

Self-Employment Tax: As a self-employed photographer, you are responsible for paying both the employee and employer portions of Social Security and Medicare taxes. This is calculated at a combined rate of 15.3% on your net business income (profit).

Income Tax: You’ll pay federal income tax on your net business income after deducting business expenses. The federal income tax rates are tiered, meaning you’ll pay different rates depending on your taxable income.

Estimated Taxes: Since you won’t have taxes withheld from your income, you’ll need to make estimated tax payments throughout the year to avoid penalties.

California State Taxes

California Franchise Tax: This tax applies to all California businesses, including sole proprietorships. You’ll report your business income and expenses on form FTB 3514 and pay taxes based on a graduated rate schedule.

California Sales Tax: If you sell physical products like prints or framed photographs, you may need to collect and pay California sales tax. The current statewide sales tax rate is 7.25%, but local jurisdictions can add additional rates. You can register for a seller’s permit from the California Department of Tax and Fee Administration (CDTFA).

Use Tax: If you purchase supplies or equipment for your business that will be used in California, you may be liable for use tax if you didn’t already pay sales tax on them.

Miscellaneous Taxes

Local Taxes: Some cities and counties in California impose additional income taxes or business license fees. Check with your local municipality for details.

Unemployment Insurance: You may need to pay unemployment insurance taxes to the state of California if you have employees.

Step 6: Get Insurance for Your Photography Business

As a photographer, you’re going to be handling expensive equipment. Here are some essential coverage options we recommend getting:

Essential Coverages

General Liability Insurance: This is the foundation of your insurance portfolio, covering you for bodily injury, property damage, and personal injury claims arising from your business activities. Examples include accidents during shoots, damage to client property, or claims of slander/copyright infringement.
Commercial Property Insurance: Protects your owned or leased business space, equipment, and inventory against damage or loss from fire, theft, vandalism, and other covered perils. This is crucial if you have a studio or store your valuable equipment at home.
Business Interruption Insurance: Covers lost income and additional expenses if your business operations are disrupted due to insured events like natural disasters or equipment breakdown. This helps ensure financial stability during unforeseen circumstances.

Optional Coverages

Professional Liability Insurance (Errors & Omissions): Protects you from claims of negligence, missed deadlines, or unsatisfactory work performance. This is particularly important if you offer editing, consulting, or other professional services beyond basic photography.
Inland Marine Insurance: Covers valuable equipment while in transit or at temporary locations like client shoots. This is essential if you use expensive cameras, lenses, or lighting equipment outside your studio.
Workers’ Compensation Insurance: If you have employees, you’re legally required to carry workers’ compensation insurance, which covers medical expenses and lost wages for work-related injuries or illnesses.

Things to Look at When Choosing a Provider

Here are some important things to consider when choosing an insurance provider:

Business Size and Risk Profile: Consider your income, equipment value, target clientele, and potential liabilities to determine your coverage needs.

Deductible Amounts: Choose deductibles that balance affordability with your risk tolerance. Higher deductibles result in lower premiums but require you to pay more out-of-pocket for claims.

Coverage Limits: Ensure your chosen limits are sufficient to cover potential claims. Underinsured policies can leave you exposed to financial losses.

Reputation and Service: Compare quotes from reputable insurance companies known for providing good customer service and claims handling.

Step 7: Secure Necessary Licenses and Permits

It doesn’t matter what type of business you are running. Companies, as well as freelance photographers, need a business license to work in California.

The type of licenses and permits you need for your business depends on your business activities and location. If you are running a studio, you might need a business license from your city/county and zoning permits if it is in a residential area.

If you’re selling physical products, you’ll have to get a seller’s permit from the California Department of Tax and Fee Administration to collect and remit sales tax.

In case you are filming on public property, you’ll have to obtain permits from the appropriate government agency managing the specific location (e.g., parks department, city hall).

If you are using a drone, you’ll have to register your drone with the Federal Aviation Administration (FAA) if it weighs more than 0.55 pounds.

Here are some resources you can use to find out which licenses and permits you need: Use reliable sources to identify specific requirements:

Most licenses and permits can be obtained conveniently online through government websites. Some might require visiting government offices to submit paperwork or pay fees. If you are confused about the process, we suggest consulting a business attorney or permit expeditor.

How Much Does It Cost to Start a Photography Business?

As you can probably guess, the cost of starting a photography business, or any business in general, varies wildly from case to case. Generally, these are the things driving your costs, with estimated total ranges at the end:

Your chosen business structure:

Sole Proprietorship: Simplest and cheapest option, with minimal filing fees and potential need for a local business license depending on your city/county.
LLC: Offers liability protection and more flexibility than a sole proprietorship, but involves filing fees, annual reports, and potential attorney costs.
Corporation: Most complex and expensive structure, offering greater protection but requiring more formalities and fees.

Your photography niche:

Portrait Photography: May require minimal equipment and studio expenses compared to other specialties like wedding or product photography.
Wedding Photography: Often involves higher equipment costs for multiple cameras, lenses, lighting, and potentially travel expenses.
Product Photography: Might necessitate specialized studio setups, lighting equipment, and props depending on the type of products you shoot.

Your equipment needs:

Entry-Level: Starting with a basic camera, lens, and editing software can be budget-friendly.
Professional-Grade: High-end cameras, lenses, lighting, and software can significantly increase startup costs.
Renting Equipment: Consider renting gear for specific projects instead of buying everything upfront to mitigate costs.

Marketing and advertising:

Free Options: Utilize social media, networking, and online portfolio building to promote your services at minimal cost.
Paid Advertising: Investing in website development, search engine optimization (SEO), online ads, or printed marketing materials can boost visibility but incurs costs.

Studio and office:

Home-Based Business: Minimizes overhead costs but might require zoning permits.
Rented Studio: Offers dedicated space but adds monthly rent and utility expenses.

Estimated ranges:

Low Budget: $2,000-$5,000 (basic equipment, online marketing, home-based)

Moderate Budget: $5,000-$10,000 (mid-range equipment, local marketing, rented studio)

High Budget: $10,000+ (professional equipment, extensive marketing, dedicated studio)

How Profitable Is Photography?

The photography industry in California is estimated to be worth over $1.8 billion, so it’s a very lucrative market. However, competition is fierce, with numerous established photographers and new entrants vying for clients.

Here are some tips on how you can stand out:

Niche and Specialty: Focusing on a specific niche like weddings, product photography, or real estate can improve earning potential due to targeted marketing and potentially higher rates.
Experience and Reputation: Experienced photographers with established portfolios and strong reputations can command higher rates and attract more clients.
Business Acumen: Understanding marketing, pricing strategies, cost management, and client service is crucial for maximizing profitability.
Location: While California offers a large potential market, consider the cost of living in your specific area and adjust your pricing accordingly.

Sources like Salary.com estimate an average of $59,000-$71,000 for photographers in California, while PayScale reports a range of $34,000-$115,000.

Successful photographers, particularly those specializing in high-end niches, can earn significantly more.

How to Start a Photography Business With No Experience

Even if you have no experience, it’s important to remember that you should never be afraid to start small and work your way up from there. Offer pro bono work, seek mentorship, and continuously learn. Apart from that, here’s our best advice on starting a photography business with no experience:

1. Find Your Niche

Experiment with portraiture, product photography, event photography, or find a niche that aligns with your interests and skills. Analyze competition and identify underserved niches with potential for growth. Showcase your best work in an online portfolio website or printed format, highlighting your chosen niche and aesthetic.

2. Build Your Business Foundation

Research the types of businesses you can form and choose the one that best suits your needs and liability preferences. Check with your local authorities about any licenses or permits required for operating a photography business. Start with essential gear like a camera, lens, editing software, and basic lighting equipment. You can always upgrade later.

3. Market Yourself Effectively

Create a professional website and social media profiles showcasing your work, brand, and contact information. Attend industry events, join online communities, and connect with other photographers and potential clients. Research average rates in your niche and location, and offer packages or discounts to attract clients.

4. Focus on Client Satisfaction

Develop strong communication skills by actively listening to client needs, delivering clear expectations, and communicating effectively throughout the project. Provide excellent customer service through your professionalism, reliability, and going the extra mile to exceed client expectations.

Gather testimonials and build a reputation by encouraging satisfied clients to leave positive reviews on your website or social media platforms.

Start Your Photography Business in California Today

If you love taking photos and you already have a great portfolio, then there’s no reason why you shouldn’t turn it into a business. It’s one of the most profitable businesses right now, and you can easily start it online and work from home.

Even without any experience or portfolio, you can teach yourself photography skills and start with some small projects. Make sure you do proper research when starting out, as it’s very important that you choose the right structure for your business.

Follow the steps we have outlined above, and you can start your journey toward building a successful photography business in California.