Sidewinder Storage. Denver, Colorado, 2015 (Example of a small business!)
Beware! This checklist is not all-inclusive, and it may not be aimed at your particular needs. So, do your own research!!! (My loud warning.)
What follows are some Colorado-specific guidelines that I recently followed that fit my particular goals. I offer them up in case they might provide a starting point for you if you are contemplating turning your photography into a professional endeavor. (Whether you’ll actually make any money or not is another thing altogether, despite the use of the word “professional”.)
Off we go…!
1. Business Plan. This could be anything from an in-depth study you do yourself, or something you contract a specialist to do. Or, it could simply be “Let’s go for it and see what happens!” Or anything in-between. Again, this is photography we are talking about, so don’t plan on bringing home piles of Franklins (unless you sell all your photo gear).
2. Name your Business. Maybe “Fine Art Photography by Camp Counselor Carl”, or “abnerkaputnikphotography.com, LLC”, or whatever. The LLC part is important to include if that’s the route you want to take.
3. File “Articles of Organization” to establish an LLC. You do this with the Colorado Secretary of State. It will cost $5.00 and take you about 20 minutes online. You’ll probably name yourself as the registered agent.
4. Prepare an LLC Operating Agreement. Your lawyer probably has a 99.9%-solution template that you can tweak. This is apparently not required in Colorado, but it is a good idea in order to show your intention to be an LLC and not simply a sole proprietorship.
5. Colorado Sales Tax/Withholding Form. You do this with the Colorado Department of Revenue. It can be done online, although I chose to actually go to their office in Denver near the capitol building at 1375 Sherman Street (8 to 5, Mon-Fri). It cost me something like $58.00. The tax number you receive is what you’ll need to get wholesale prices for your supplies–frames, paper, ink,. etc. (Note: I chose annual sales tax reporting rather than quarterly due to my low sales volume.)
6. City sales tax and business license. Since I live in Boulder, I went down to the City offices at Broadway and Canyon, paid $25.00, and turned in my two forms (which you can download online). It will take 4-6 weeks to receive the license. If you aren’t in the Boulder Bubble, check with the municipality where you live.
7. Employee Identification Number. You get this from the Feds, it is free, and can easily be done online. You’ll need the exact name of your business.
8. Set up a business checking account. Along with this, you might consider adding Quick Books to your “To Learn” list.
9. Regular reporting. Annual tax returns (see your accountant), and annual (or quarterly) sales tax payments/reports.
Some other ideas…
–Adding employees complicates things. Consider trying to be a one-person show.
–The Colorado Department of Revenue has classes to help you learn the intricacies of the state sales tax and filing requirements.
–The Colorado Small Business Development Center (SBDC) also has classes and advice for new businesses. In Boulder, they are located in the North Wing of the Boulder Public Library.
–Finally…Some artists elect to avoid all this business stuff altogether. They simply put their work in galleries or stores–the business will take a percentage (perhaps 30% to 50%), but they handle all the sales tax issues and you just keep up the inventory. You will simply get a check periodically for your percentage of the sales.
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