How to Start a Photography Business
The Step-by-Step Guide for Beginners Who Want Sustainability
Starting a photography business is exciting… until you realize no one teaches you how to actually run one.
You know how to take a photo.
But pricing?
Taxes?
Legal setup?
Client systems?
That’s where most new photographers feel overwhelmed, and why most photo businesses end up failing before they see any profits.
If you’re wondering how to start a photography business the right way — without burnout, confusion, or undercharging — this guide will walk you through the exact foundations you need.
I live in Wyoming, close to the Colorado border, so you’ll find links to specific tax info in both of these states.
Step 1: Decide What Kind of Photography Business You’re Building
Before you create a logo or Instagram handle, get clear on your direction.
Ask yourself:
- Do I want to photograph families, high school seniors, weddings, branding, or headshots?
- What type of schedule do I want?
- Do I want weekends full or free?
- What type of client experience do I enjoy providing?
Choosing a niche early helps you:
- Build a strong portfolio.
- Hone your skillset and establish yourself as an expert in one area.
- Attract aligned clients.
- Price appropriately.
- Avoid trying to serve everyone.
You can pivot later. But clarity now will save you time and energy. Take it from this jack of all trades….you can’t do it all without sacrificing your sanity. I still offer a wide variety of services, but I am very selective in what I take in certain areas (weddings, for instance).
Step 2: Make Your Photography Business Legal
This is where many new photographers hesitate — but it’s one of the most important steps. Making your photography business legal needs to happen before you begin collecting money from clients. Taking payments before you are a legal business can put you personally at risk for tax implications, and it’s just not a good idea. Protect yourself, your family’s finances, and the future of your business by making sure all your ducks are in a row before you start taking payments. And please make sure you check your specific state for legal requirements for starting your business. I am not a lawyer, and every state is a little different!
If you want to start a photography business professionally, here’s what you typically need…
Choose Your Business Name and File As a Business in Your State
Before you can official file as a legal entity, you need to determine if your business name is available in your state, and you’ll need to decide on your businesses legal structure. These two go hand-in-hand because you might need to include the business type in your official business name.
Most photography businesses are either a Sole Proprietor/Individual or a Limited Liability Corporation (LLC). I started mine as a sole proprietor, but eventually moved to the LLC.
Sole Proprietorship
- In a sole proprietorship, you are personally liable for all debts, meaning your personal property is at risk.
- The simplest way start to your new business. Federal taxes are filed under your name and social security number on your income tax return.
Limited Liability Corporation
- The LLC structure offers more protection for your personal assets (home, savings) from business debts or lawsuits.
- Costs anywhere from $50-100 and usually can be completed quickly online.
- You are typically your ‘registered agent,’ and you’ll likely have an annual report to file with your state each year.
- You can add partners or have an individual LLC.
- Probably the best choice for protecting your assets and allowing for potential growth.
S-Corporation
- An S-Corp is a small corporation, which allows for shareholders and prevents double taxation to those shareholders and the business entity.
- It has greater tax benefits if a business’ income is substantial enough to cover its accounting and filing fees, but the additional fees and paperwork prohibit it from being a great option for new photo businesses.
Here’s the link to form or register as a new business here in Wyoming.
Choose Your Name & Determine if You Need a Doing Business As (DBA)
Most states have databases to search to determine if your business name is available. For example, here is Wyoming’s database: online business search tool. Pay close attention to state rules and requirements for naming your business. In Wyoming, for example, any business with the word ‘education’ in it has to be approved by the Department of Education. Similarly, someone can’t name their business XYZ Bank without getting approved by the Board of Banking.
Wyoming isn’t one of them, but certain states require you to file a Doing Business As (DBA) before you register as a sole proprietor or LLC. In Colorado and Utah, you need a DBA if your business operates under a name that is not your own true, legal name. For example, if you are a sole proprietor in Colorado, and you run your business under your legal name (‘Janelle Rose’, for example), you don’t need a DBA. However, most people want to run a photo business using the word Photography or Photos somewhere in their business name. When I first registered as a sole proprietor in Utah, I filed a DBA as Janelle Rose Photography. Had I first filed my business as an LLC, the legal entity name would have been Janelle Rose Photography, LLC, so I wouldn’t have needed a DBA.
A Quick Note About Names
Many photographers use their own name as their business, and obviously, that’s what I’ve chosen to do. I think it’s been a good choice, because most people remember me by my name. Photography is a very personal business. I’ve seen some photographers name their business other things; ideas, locations, colors, animals…..the sky is the limit. In my experience, if a name is too obscure, though, people have a hard time remembering it. Generally, my clients remember me by my name, so it’s worked well for me.
Get an EIN (Employer Identification Number)
Once you create your business through your state’s Secretary of State office, you can apply for a free EIN through the IRS website here.
Even if you don’t have employees, an EIN:
- Protects your Social Security number
- Allows you to open a business bank account
- Makes tax filing easier
- Adds professionalism when working with other businesses
An EIN also alerts the federal government that you are potentially collecting payments, so obviously, don’t neglect to include your photo income on your income tax return!
Apply for a State Sales Tax License
Most states require photographers to collect sales tax on:
- Digital images
- Prints and albums
- Wall art
- Sometimes session fees (in Wyoming, session fees are always subject to sales tax; in Colorado they are not)
You must register with your state’s Department of Revenue to legally collect and remit sales tax. In Colorado, there is also a home-rule for certain cities and counties, where the state doesn’t collect the local tax for that city. You’ll have to further check with the local city/county about their rules and how they want you to collect that portion of the tax. For example, if you sell photos in Fort Collins, the state will collect 2.9%, and the remaining 4.35% will be collected and remitted to the city of Fort Collins.
Skipping this step can result in penalties and having to pay big sums in back taxes — it’s much easier to do it correctly from the beginning.
Taxes will need to be filed and remitted to your state’s department of revenue according to the appropriate filing schedule (monthly, quarterly or annually). I file monthly, but when I first started out, I filed quarterly. The state will determine which schedule you follow.
Here’s a pdf about Wyoming sales tax as it applies to photography businesses. Long story short on this one, everything is pretty much taxed, including sitting fees. Wyoming considers services/sitting fees as part of the creation of the photo and digital product.
Here’s the link to apply for a Wyoming state sales tax license.
Wyoming and Colorado have very different approaches to sitting fees and services. Colorado allows a photographer to separate out a sitting fee that isn’t taxed. However, if your sitting fee is bundled into one price with the digital files, you need to add tax to the whole package. So if you have a package that includes digital files, you might consider having a separate sitting fee due upon booking.
Here’s a great summary of taxes as they pertain to photographers in Colorado.
How to apply for a Colorado sales tax license.
Obtain a Local Business License
Many cities and counties require a general business license — even for home-based photography businesses.
Check your local city or county website for:
- Small business registration requirements
- Annual renewal fees
- Zoning guidelines
Here in Cheyenne, business licenses aren’t required for photography services, with the exception of the Home Occupation Permit if you operate out of your home (see below).
Home Occupation Permit (If You Work From Home)
If you edit, store equipment, or meet clients in your home, you may need a home occupation license. In Cheyenne, Wyoming, where I live, this is a new requirement.
The Home Occupation Permit ensures:
- You comply with zoning laws
- You’re operating legally in a residential area
- You understand restrictions on client traffic or signage
Every city is different, so check your local city clerk’s website.
Here is Cheyenne’s Home Occupation application.
Step 3: Open a Bank Account for Your Business
It’s super important to separate out your business and personal finances. As soon as you get your EIN, open:
- A business checking account
- A dedicated debit or credit card just for your business
Start to keep track of expenses, even if just in an excel spreadsheet. Having everything in separate accounts makes tax season easier and protects you long-term. Starting clean is far easier than untangling mixed finances later.
Step 4: Get Insurance
Secondly, protect your finances by getting insurance for your business. Not only do you want to protect you, your equipment, and your family’s finances, but you want to protect your clients. Some venues and open spaces insist you provide proof of insurance in order to shoot there. I get all my business insurance through the Professional Photographers of America (PPA), including liability and equipment insurance, but I know there are many options available to photographers, including Hiscox, State Farm or Thimble.
Here’s a brief breakdown of types of insurance:
- General Liability
- Covers accidents that might occur during a shoot, like a light falling on someone, or a client tripping over a cord, or damage to a property/venue caused by you or your equipment.
- This is usually what venues ask for proof of, and don’t be surprised if they ask for at least one million in liability insurance coverage.
- Data Loss & Negligence/Indemnification Trust
- Covers everything from hard drive failures, card failures, or to when someone accuses you of wrongdoing or files a complaint against you. This is what would provide legal defense and help you recover your reputation if someone tries to sue you (I know, sounds scary, right?).
- Business Owners Policy
- Only really necessary if you own or rent a studio/property, or if you have multiple lines of operation or multiple employees.
Step 5: Price for Profit (Not Just to Get Booked)
One of the biggest mistakes new photographers make when starting a photography business is underpricing.
You are not just charging for:
- The hour of shooting
- The edited images
You’re charging for:
- Equipment
- Software
- Insurance
- Education
- Taxes
- Time spent emailing, planning, editing
- And most importantly, the value of time spent away from your family
If your pricing doesn’t account for these, you will burn out.
Build pricing based on:
- How many sessions you realistically want per month
- Your cost of doing business
- The income you want to earn
Low prices attract volume.
Intentional pricing attracts sustainability.
Step 6: Build a Portfolio That Attracts What You Want to Book
Your portfolio should reflect what you want more of — not just what you’ve been given.
If you want to book:
- High School Seniors → Show high school students.
- Branding → Show business owners.
- Families → Show authentic connection, focus on moms.
You can create portfolio content through:
- Styled shoots
- Photographing your own friends and family
- Model calls
- Strategic discounted sessions, while making it super clear that you are offering ‘portfolio’ prices for only a limited time
However, be sure to shoot with purpose, not randomness. Don’t post on your Facebook page, “Anyone want to go take pictures?” Instead, let people know what you are specifically trying to take photos of. For instance, if you’re aiming to photograph families, say, “I need a family with children ages 1-10, who is willing to meet me on xx/xx/xxxx at xyz location, and who doesn’t mind if I share their photos online.” I can’t tell you how many times I’ve seen photographers offer a free session only to have a mom ask that photos not be shared. Be sure to get a contract and model release, even if you’re shooting for free (more on that later!).
Step 7: Create Systems BEFORE You Get Busy
Success without systems leads to overwhelm. And overwhelm leads to sloppy customer service and eventual burnout.
Even simple workflows will transform your business:
- Inquiry response templates
- Booking confirmations
- Contracts (every, single time you shoot!)
- Automated emails
- Clear turnaround timelines
Client experience is what builds referrals — not just pretty photos. Find a CRM and learn it inside and out. Want to know what I use? Click here for a list of my favorite programs and gear.
If you want a profitable photography business, systems matter as much as skill.
Step 8: Protect Your Energy From Day One
Decide what your personal boundaries are right now, so that you can continue doing what you love for a long time.
You do NOT need to:
- Answer emails at midnight
- Book every inquiry
- Discount constantly
- Say yes to every location
You’re building a business — not creating a job that drains you.
Set boundaries early so you don’t regret missing out on precious time with your own family.
Future you will be grateful.
Final Thoughts: Starting a Photography Business the Right Way
You don’t need to know everything.
But you do need:
- Legal foundations
- Financial clarity
- Intentional pricing
- Clear systems
- Confidence in your value
It’s estimated that most photography businesses fail within the first 1-3 years. Most photographers struggle not because they lack talent — but because they were never taught the business side.
And that part is learnable.
Ready for the Next Step?
If you’re serious about building a profitable photography business — not just a hobby — I’ve created a free resource to help you.
Download: “The Photography Business Starter Checklist”
Inside, you’ll get:
- A legal setup checklist
- A pricing foundation worksheet
- A client workflow outline
- A launch roadmap for your first 90 days
This is the exact foundation I wish I had when I started.