Quick Tip: To Reduce Legal and Financial Risk, Register Your Business as an LLC

Posted by on Wednesday June 6, 2018 | Business, Copyright/Legal

Attorney Aaron M. Arce Stark

Beware of operating your photography business as a sole proprietorship, advises attorney Aaron M. Arce Stark in “Making Your Photo Studio an LLC: The Pros and Cons.”

He explains:

“Let’s say a client hires you to shoot an assignment. When it comes time to pay, the client writes you a check and addresses it to you—your personal name. You cash it.

“In taking these simple steps, you’ve accidentally established your business as a sole proprietorship: For all legal intents and purposes, you are the business. This is trouble. It means that if your business is sued for any reason—copyright infringement, invasion of privacy, or even simple breach of contract—then you are on the hook. Any asset you own could be taken, including your house, your equipment and your personal bank accounts.

“To [encourage people] to start businesses without fear of losing all their money, we have limited-liability corporations, or LLCs. LLCs offer a liability shield, without all the hassle, paperwork and formal procedures required of a regular corporation.”

For more about LLCs and how they work, see “Making Your Photo Studio an LLC: The Pros and Cons” by attorney Aaron M. Arce Stark.

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