| If you are getting into digital food photography as a business, then you have to get paid. Although it can be a delicate matter, budgets should be discussed right up front. As I discussed in Chapter 3, "Who's Digesting It: Public Relations, Advertising, and Packaging," budgets will vary depending on the final usage of the photo and on the people and resources needed to produce it. You need to protect yourself financially by ensuring that clients approve assignments before they begin. I always present the pricing and receive approval from the client before I proceed. As a general rule, I send a written estimate to clients after they contact me with their request for a shoot. I ask them to provide a purchase order number to ensure that a go-ahead for the job has been approved on their side, and also ask them to return a signed copy of my estimate. Tip The ASMP and other professional associations offer members sample business forms for estimates, delivery memos, and the like. Although they are generic and often need some customizing for a food photography business, they are a good starting point for developing your own paperwork tools.
Generally, I ask clients to advance 50 percent of the total estimate for the shoot to cover direct expenses, with the balance due on delivery of the final images. Clearly, one major advantage of digital photography is that photographers do not have to worry about film and processing costs, as they did in the past. This frees up a considerable amount of working capital that can be used for styling, props, equipment rental, and other expenses. As with any business, there is a list of things you need to do to ensure your success. These include the following: You need to choose a legal form of business. You might be able to pick a corporate structure that gives your business a separate legal and tax identity from yourself. Discuss with a financial advisor whether you should operate as a sole proprietorship, a limited liability partnership, a limited liability corporation, a Subchapter S or C corporation, or some other entity. Of course, business structures can be changed if necessary. Talk with a good accountant and/or lawyer. Each type of corporate entity has different legal and tax consequences that you should understand. Determining Your Corporate Structure Often, new photographers set up sole proprietorships. This form of business is the easiest to start and gives you absolute control. The sole proprietor's income from the business is treated as personal income. The photographer does business as himself, which means that legally and for tax purposes, you are one entity. In the beginning, this might make sense. But, as their business grows, people often explore the possibility of forming a limited liability partnership or "LLC." This gives your business a separate legal and tax identity from yourself. For example, in the unfortunate event that you are sued, the business assets can be taken, but not your personal assets. At the same time, profits from the business "flow through" directly to you, and are taxed at your personal rate instead of at a corporate tax rate. |
This was an electronic postcard that I sent out for the 2004 holiday season. It was well received and helped generate business.  You must choose a business name and register it. The name of a business is called a "trade name." Although the name of a company by itself is not a trademark, the name of the company may be trademarked if it is used as the name of a product of service. You should consult an attorney to help you complete the process of registering. Often, states and counties will not permit more than one business to register the same name. When choosing your business name, check with a corporate name registration service to see if the same name is available. You'll need to decide on your address. Many photographers choose to use their home address as their business and mailing address, but others want to downplay the fact that they are a home-based business. I suggest using a post office or drop box as the business address. Get a business license. It gives you permission to do business in your area. Not every city or county requires a business license, but if your product or service is taxable, you will need a state sales tax permit and the business license. Open a business checking account. I suggest committing a full day to calling or visiting banks in your area to find out what services they offer. As you know, bank fees can be considerable, so shop around!
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