Thursday, February 23, 2012

Tip #100: Keep It Legal

If you are considering going pro, be sure you keep it legal. I am not talking about your subject matter, rather I'm speaking to the fact that if you sell photos, you will likely have taxes to pay on your sales.

When I looked into the process in Texas, I learned that failure to properly report such earnings comes with stiff fines -- up to $500 per day for each violation. So, I dutifully registered my photography business; I report sales on a quarterly basis; I collect sales taxes from my customers; and I promptly pay sales taxes as required by the state.

There is a bright side to all of this. I avoid the penalities of non-compliance, and I enjoy making tax-free purchases of business-related equipment, used exclusively for the production of photographic images. Note: I still pay sales tax on items for personal use.

Keep it legal; keep it honest; sleep well at night!



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