Should I Start an LLC for My Commercial Photography Business?

Starting a limited liability company (LLC) for your commercial photography business can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a commercial photography business, lawsuits can arise from things like image copyright infringements (e.g., as a result of taking a photograph in an identical manner to a competitor, etc.).

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your commercial photography business seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

Do I Need an LLC for a Commercial Photography Business?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Commercial Photography Business

By starting an LLC for your commercial photography business, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Commercial photography businesses will benefit from liability protection because of the risk of lawsuits for personal injuries, property damage, breach of contract, and trademark infringement.

Example 1: A competitor sues you, claiming you stole their work and passed it off as your own for profit. As the owner, since your business is an LLC with limited liability protection, your personal assets cannot be used to pay the settlement.

Example 2: A piece of copyrighted material can be seen in the background of a photo you took for a client, and the copyright holder is threatening to take legal action. Your personal assets as the owner are protected with limited liability as an LLC, which means your personal funds won’t be used to pay for any legal damages.

Example 3: While setting up your camera equipment, a passerby trips on cords and breaks their collarbone. They demand you pay for their medical bills. As an LLC with limited liability protection, your business’s assets will be used to pay for the expenses rather than your personal assets.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Commercial Photography Business

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a commercial photography business owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Commercial photography businesses rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a trusted LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All LLCs need insurance. The assets of a business are not protected by limited liability from being an LLC, only the owner’s personal assets are protected. Commercial photography businesses need insurance because of problems that can come from working with expensive equipment. If anything happens to your camera equipment or someone is injured during a photo shoot, insurance can help handle those costs.

Common Situations Business Insurance May Cover for a Commercial Photography Business

Example 1: When a client visits your studio to discuss wedding photographs, she trips over an exposed cable and breaks her wrist. She demands your business pay for her medical care. General liability insurance would cover the cost of her medical treatment.

Example 2: A competitor decides you libeled them in your latest marketing campaign. While you’re uncertain what they consider libel, you know you need a legal defense as soon as possible. General liability insurance would cover your legal fees.

Example 3: After setting up your equipment inside a client’s building, you leave to eat lunch. When you return, you discover a fire — and the client claims your equipment is the cause. If a court finds you responsible for the fire, general liability insurance would cover the repair costs because your policy pays for damage to the client's property.

Other Types of Coverage Commercial Photography Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all commercial photography businesses should obtain.

Professional Liability Insurance

While you work hard to avoid making mistakes, there’s always a chance one of your clients could claim your photography services caused them damage or injury. Professional liability insurance protects you and your employees in the event of an on-the-job error by covering your legal fees if you face a lawsuit.

Commercial Property Insurance

You’ve made major investments in photography equipment and supplies to establish your business. If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire, burglary, or natural disaster. And you can’t work without the proper equipment. Commercial property insurance would cover the cost of repairing or replacing your photography equipment and supplies after an accident so you can recover quickly.

Commercial Auto Insurance

Any vehicle you or your employees use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any special equipment you carry in your vehicles.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance, commercial property insurance, commercial auto insurance, and workers’ compensation insurance if you have employees.

Read our Commercial Photography Business Insurance article for more info.

Usually, $10,000–$15,000 is suggested for camera and studio equipment as a startup. You will need a variety of equipment, but most can be bought used to save on cost. Plan to spend a few thousand dollars on accessories and equipment to make your photos stand out.

Visit our How to Start a Commercial Photography Business guide to learn more about the costs of starting and maintaining this business.

Ongoing expenses of a commercial photography business typically include rent, travel costs, marketing, equipment maintenance, website maintenance, software, and insurance.

Learn more about running a commercial photography business.

Commercial photographers usually charge a fee for each photoshoot. Those fees will vary based on the size and difficulty of the project, the photographer’s experience, and other factors.

Learn more about starting a commercial photography business.

Commercial photographers specialize in photography with a marketing focus. While this type of photography often has an artistic element, its main goal is to help sell a product or service.

A commercial photography business’s profitability will depend on the number of clients it has, how much they pay, and a variety of other factors.

Learn more about starting a commercial photography business.