Has anyone incorporated their photography business?

[HDNitehawk]

I suspect that in a photography business, the high capital costs depreciated over time could wipe out any income, leaving you with actual income (money in the pocket) from the business but no paper income because of the offsetting expenses. I believe the tax rules for corporations give you more flexibility here than with sole proprietorships.

You can deprecate capital expense with both types and it will definitely keep money in the pocket. I am not aware of how there might be a benefit form one to the other, and from my time owning a corporation I don't think it was much diffrent. That was 12 years ago though and times change.

But that's for the accountants. And it seems like Joel's accountant sees a benefit to corporate tax treatment rather than sole proprietorship.

It will be a benefit to the accountants taxes, it makes more work for him and he makes more money because he spends more time on your taxes. As with doctors, lawyers, accountants and other professionals they are in the business to make money. They have to be managed or you end up with unnecessary expenses. The more you know yourself the better off you are.

It does make it easier for the accountant to justify the expense as a legitimate buisness rather than a hobby, if it appears the buisness is actually a buisness. If you go to the trouble to structure a business it will appear to actually be a business. Proving that the business is a for profit business in this situation is the biggest hurdle to overcome.

But I still think all of this is beside the point. Forming and maintaining a single member LLC is cheap and easy. The LLC requirements for my old consulting business took me about 10 minutes and $25 a year. No reason not to do it IMO.

I agree, it isn't a big deal to do.