Do I Need an LLC for My Travel Photography Business?

Starting a limited liability company (LLC) for your travel 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 travel photography business, lawsuits can arise from things like using watermarked photos without permission, accidents involving the company vehicle, and any injuries incurred by a customer on set.

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

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

Should I Start an LLC for My Travel 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 Travel Photography Business

By starting an LLC for your travel 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.

Travel photography businesses will benefit from liability protection because of the risk of being sued for libel, trademark infringement, and even personal injuries.

Example 1: One of the photos you use on your website has a copyrighted logo in the background and the copyright holder is suing you for copyright infringement. As an LLC, your personal assets are protected so they could not be taken in the settlement.

Example 2: While setting up your camera equipment, a passerby trips over some wires and suffers numerous injuries. They ask you to pay for the medical expenses. Since your business is an LLC, the expenses could not be paid using your personal assets which are protected with limited liability.

Example 3: The company vehicle you use for domestic work is in an accident with another motorist who demands you pay for the damages. The repair expenses could not be taken from your personal assets since they are protected with limited liability as an LLC.

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 Travel 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 travel 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

Travel 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 professional 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 businesses need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

Camera equipment can be greatly expensive, so protecting your equipment with insurance can help with the costs should they need to be repaired or even replaced. Business insurance can also be used to settle lawsuits and pay legal fees.

Common Situations Business Insurance May Cover for a Travel Photography Business

Example 1: You have rented a special lens for an upcoming project. During your travels, it is damaged beyond repair and the rental company is suing you for a replacement. General liability insurance would help replace the damaged property.

Example 2: A new client brings her daughter to a meeting, where she breaks a framed photo and cuts herself. Her medical bills would be covered under your general liability policy.

Example 3: As a joke, you tweet about another travel photographer. He is suing for defamation, claiming that your tweet has caused his business to lose revenue. General liability insurance would help pay your attorney’s fees, as well as damages if held liable by the courts.

Other Types of Coverage Travel 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 travel photography businesses should obtain.

Home-based Business Insurance

Since a homeowner's policy specifically excludes business property and business-related losses, it is important that those working out of their home purchase the proper coverage. A home-based business insurance policy is there to protect you, ensuring seamless coverage if your business materials are damaged or destroyed inside your home. Some homeowners insurance policies will offer this as an extension of regular coverage.

Inland Marine Insurance

When purchasing your business policy, be sure to discuss coverages and exclusions. Since your work requires frequent travel with your business tools, an inland marine policy may be necessary. Inland marine insurance fills a coverage gap, ensuring business property, equipment, and tools are covered when taken off business premises.

Workers' Compensation Insurance

Workers’ compensation insurance is a state-mandated policy for businesses with both full-time or part-time employees. If an employee is injured while performing business activities, they could be eligible for coverage under this policy. Additional coverages include a percentage of lost wages for the employee and legal representation for the business owner.

Commercial Auto Insurance

If you travel with your own vehicle, state law requires at least the minimum commercial auto coverages. This policy covers damaged vehicles, liability claims, and lost equipment. Business owners with significant assets are encouraged to protect themselves financially by considering coverage beyond state-mandated limits.

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 and commercial auto insurance.

Read our Business Insurance article for more info.

Most travel photographers work out of their home or on the road. Your start-up costs include investing in several professional cameras and accessories like a laptop or computer and the associated software for editing. Of course, you are going to need to pay for your travel as well. $20,000 should buy your basic equipment and get you to your first few destinations.

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

Travel costs are the primary ongoing expenses, although you also will need to purchase and occasionally replace photography equipment.

Learn more about running a travel photography business.

Travel photographers primarily make money by selling travel photos to clients.

Learn more about starting a travel photography business.

A travel photographer takes photos of locations around the world for a variety of clients. These can include blogs, online and print magazines, travel websites, and various other businesses catering to tourists.

Profits depend on the type of clients you have, client volume, and how much you charge for each project.

Learn more about starting a travel photography business.