Should I Start an LLC for My Wedding Photography Business?

By starting an LLC for your wedding 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.

Wedding photography businesses will benefit from liability protection because of the risk of negligence claims, property damage, libel, and more. 

Example 1: One of your clients claims that you are in breach of contract since you have not delivered all of the photos from their wedding to them by the agreed deadline. If they proceed to file a lawsuit against your LLC, limited liability protection will ensure that only your business’s assets can be used to compensate the claimant. 

Example 2: After you show a client their wedding photos, they are beyond disappointed, stating that the images are blurry and the editing is terrible. After refusing to refund them, they decide to file a compensation lawsuit against your wedding photography business. Here, limited liability will ensure that your personal assets remain out of bounds to the claiming party, even if your business is unable to compensate them. 

Example 3: While entering your studio for a pre-wedding photoshoot, one of your customers trips on a tripod, injuring their left ankle. If a medical damages lawsuit were to arise against your LLC, your business might be required to compensate the claimant, but your LLC status will ensure that your personal assets remain protected.

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 Wedding 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 wedding 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

Wedding 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.