HOW TO OPEN AND OPERATE

A PHOTOGRAPHY BUSINESS

by James Vail
Copyright © 1997 by James Vail

All rights reserved. No part of this book may be reproduced except as may be expressly
permitted by the Copyright Act or by the publisher.

Cover and text illustrations by Laurel Vail

Library of Congress Cataloging-in-Publication Data

Vail, James
How to open and operate a photography business / James Vail
p. cm.
Includes bibliographical references.
ISBN xxx
1. Photography--Business methods. I. Title
Manufactured in the United States of America
First Edition/First Printing

This book is intended to provide information on the topics covered that is accurate and
useful. Neither the author nor the publisher is engaged in rendering legal, financial,
accounting, and other professional services nor do they assume any liability resulting from
this information. Reference or mention of any company does not constitute an
endorsement.
 INTRODUCTION

Of the spectrum of small businesses available that can be built up from nearly nothing,
photography stands out from the rest. Most photographers started out with equipment
already on hand with operations out of their homes. They love their craft and their
business fulfills their dreams. A day at work is a day of creation not just making a living.
However, the field is very crowded and only the good survive. Good means skilled in
photography and also skilled in business.

This book is written to fill in the knowledge gap on the business of photography.
It is not about how to photograph. If you don't know that already, don't even consider
starting a photography business. The business side of the trade can, and may have to be,
learned quite quickly. Hopefully this book contains all the basic information you will need
until experience finishes your education.
 CONTENTS
RUNNING YOUR OWN BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Are You Really Ready for a Business ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Pros and Cons of Running Your Own Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

CHOICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Assignment photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Stock photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Advertising photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Corporate photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Retail photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Editorial photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Specializations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
News photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Portrait photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Wedding photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Fashion photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
School photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Actor and model portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Travel photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Nature and wildlife photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Real estate photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Catalog photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Specialized Subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Art Portfolio Photography, Copying and Reproductions . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Where Do You Fit In? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

BUSINESS STRUCTURE, AND STARTUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Choice of Business Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Sole Proprietorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
How to Register Your Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Steps to Incorporating a Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

RECORD KEEPING AND ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Purpose of Keeping Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Other Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Local Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
State Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Federal Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Cash vs Accrual Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Uniform Capitalization Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Business Loss vs Hobby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Vehicle Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Start Up Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Office in the Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
 Self Employment Tax (SECA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Estimated Tax Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Entertainment and Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Filing Dates for Tax Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

PRICING FOR PROFIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Retail Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Commercial Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Pricing Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Advertising Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Corporate Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Editorial Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Stock Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

FINANCING START-UP AND GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Personal Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Friends and Relatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Debt Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
U.S. Small Business Administration (SBA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Small Business Investment Companies (SBIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Economic Development Commission (EDC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
State Financing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Consumer and Commercial Finance Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

MARKETING YOUR PHOTOGRAPHY BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Publicity and Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Your Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Agents: Stock, Reps, News Syndicates, and Galleries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Assignment Representatives (Reps) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Galleries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Your Own Mini-Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Wire Services and News Syndicates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Professional Organizations and Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Books and Periodicals for Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

DEALING WITH EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Permanent Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Temporary Personnel Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Independent Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Employee Leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

COPYRIGHT BASICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Licensing the Use of Your Photographs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Work for Hire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

1
 RUNNING YOUR OWN BUSINESS

Are You Really Ready for a Business ?

Starting a business is a personal act. Only you can determine if the situation is right.
There are really only two basic considerations, why and how. Why, is rooted in your
goals, both personal and financial. How, is made up of your skills and resources. A
business plan goes a long way towards answering these questions. Before you do
anything, at least put together the information needed for a business plan. In addition
to a plan, you need a hard, objective look in the mirror. Are you skilled and
experienced enough to produce a professional quality photographic product demanded
by the marketplace? If not, proceed no further. Poor quality work will kill a business
faster than any other cause.

Photography is an odd sort of profession, it requires skills but no formal education.

Most of its practitioners started out as hobbyists even if they were formally trained.
They genuinely love their work. Most are small businesses in a trade that anyone can
get into. Yet they thrive in this competitive environment because it is their passion,
their life. If you want to compete with them, you had better be like them.

Whether its a part time extension of your hobby or a full time commitment of your life
and resources, your direction should be goal-oriented. Running a business is hard
enough without a star to steer by. Taking what conveniently happens along is a
formula for dissatisfaction with your business further down the road.

Photography aside, do you have entrepreneurial skills? Listed below are personal
traits that have been shown to be key characteristics for entrepreneurial success. The
list can be used to reveal what skills you possess and what weaknesses for which you
need to compensate.

Goal oriented Ability to network and use feedback

Ability to be self-starting Integrity

Commitment Ability to analyze opportunities

Decision-making ability Self-awareness

Problem-solving ability Ability to deal with frustration

Ability to deal with stress Ability to deal with problems and failure

2
Pros and Cons of Running Your Own Business

Advantages Disadvantages

You are in charge: You are in control of
your life. You have freedom to be
creative and do the things you want to
do. Of course this freedom must be
balanced with your responsibility to the
business.
There is a much higher ceiling to your
earnings: The fixed pay scale of a job is
now only limited by your skill and talent.
You set your hours: You can adjust your
work hours to when and as long as you
want.
You risk losing every thing you put in: If
you fail, you risk losing your investment
of time, money, skill, and sacrifices.
Stress can become a constant
companion: Any problems at work
become your problems, its your busi-
ness and your the one to deal with
them.
Working long hours can become the
norm: 60 hours a week is not unusual.
You also take the business around in
your head the rest of the time.

You can build a dream from scratch:
Achieving your goal can fulfill your life.
You can do something you like: Nearly
every professional photographer still
has photography as a hobby.
You wear many hats: If your a
photographer employee, all you need to
know is photography. As a studio
owner you must be knowledgeable in
photography, personnel management,
finance, taxes, and marketing.

The Business Plan

A business plan can range from ideas in your head to a formal report that becomes an
important business document. The plan provides two major functions:

1. It is your roadmap to your goals and it can show you if the path your taking is
possible or doomed before you start out. If it can't be made to work on paper it's
unlikely you will make it work in practice. In addition, use your plan as a yardstick to
establish objectives and the schedule to attain them.

2. No one will consider any type of financing for your business without some kind of a
plan on your part. This even includes family and friends but it really applies to financial
institutions.

The outline on the next page provides an adequate framework for a business plan.
Many books have been devoted to writing business plans. Some of them would lead
you into elaborate and detailed plans but for a small business startup the plan should
only be a few pages.

3
 Business Plan
1. Business description
Address of business
Phone number of business
Names of participants in the business, including their addresses, phone numbers and social
security number
Business structure, (e.g., sole proprietorship, partnership, or corporation)
Required permits or licenses
Banker and insurance agent

2. Purpose
State your business objectives
Estimate start-up funds required and their source
Repayment plan, if necessary
Provide a short resume

3. Management
Operator of the business
Your schedule of expected income and owner drawings

4. Location
Why your location was selected
Location benefits to your business
Disadvantages of your location

5. Personnel
Staff needed now, and in the future
Staff training plan
Pay and incentives policy

6. Suppliers
Who are they?
What do they supply?
Will your suppliers give you credit?
Will you be leasing equipment, from whom?

7. Market
Identify your customers
Potential market growth
Planned advertising and promotion
Does your business fill a niche?

8. Competition
Who is your competition?
What more will you offer your customers?

9. Financial information
A cash flow, income, and expenses projection
A balance sheet to reflect the availability of funds
The cost of equipment and other major supplies required

4
 CHOICES

The photographic career field is immense. It ranges from local sports coverage on a
freelance basis to the major studio with daily fees in the thousands. Thousands of
photo markets fall in between. Somewhere out there is a niche for you. To find where
you fit in, all the major branches of the profession should be reviewed.

Professional photography breaks down into two business types: photography

commissioned by a customer, known as assignment photography and photography that
is shot on speculation, known as stock photography.

Assignment photography

Assignment photography is the major way of doing business today. Assignment

photography includes portraits, weddings, advertising, sports, school photography, and
most work for others. Nearly all photographers will work on assignment their entire
lives.

The lack of any significant financial risk is the big attraction of assignment photography.
A contract is signed before work begins, and a hefty advance can minimize losses.

Stock photography

Stock photography is the creation of a collection of photographs in the hope that a

stock agency can broker a market for them. Most of the stock photographs carried by
stock agencies are leftovers from photographs taken on assignment. The market is
quite large: brochures, books, calendars, magazine articles, advertising, etc. An
assigned shoot for these publications would cost a prohibitive amount. Its a win-win
situation. The publishers get an affordable supply of photographs on almost any
subject and the photographers profit from images that would otherwise have died in
their files.

The down side is, supply has become much larger than demand. This has resulted in a
improvement in quality of images brought on by competition. Today, most stock
photographs are shot as stock photographs and not just assignment leftovers.
Obviously being on location for an assignment is still a valuable opportunity that should
not be passed up for stock oriented shooting.

Unlike assignment photography, stock photography is an open marketplace. There are

a few rules if you want to stay competitive:

The greater number of images you present, the more likely a match to a

5
 customer's needs.

Your stock file needs to be fresh images that will not get dated quickly

The photographs must be unique from the competition. They can be made
unusual by carefully selecting location, composition, and subject matter.

Finding your niche in the market is probably the most influential factor in selling
your stock. The market is looking for all subjects not just the ones you think
would be popular.

Weak or Crowded Market Areas:

Natural pictures (birds, scenics, insects, plants, wildflowers and cute

animals)
Major pro sports
Silhouettes
Experimental, artistic and abstract photography
Familiar places (landscapes, popular travel spots, monuments, landmarks
and historic sites)

Strong Market Areas:

Your personal interests outside of photography (hobbies, reading and

activities)
Local large cities and points of local interest
Occupation(s) you have, had, or want to be
Occupation(s) your friends and family have to which you can get access

Sometimes a stock photograph will sell and sell again. Photographers have reaped
thousands of dollars from the multiple sale of a single photograph. But, you have to
open a lot of oysters to find a pearl. Most of these photographers have large portfolios
extending over many years.

If you are starting out with stock shooting expeditions on your own, the up front
expenses may devour you. There is no guarantee of any sales. By building a stock
portfolio as a sideline while pursuing an assignment career is a much less risky
direction to follow.

6
Markets

The customers buying either stock or assignment photography can be sorted into four
markets: Advertising, Corporate, Editorial, and Retail.

Advertising photography

Advertising photography is where the money is. It is a major supplier of the lucrative
multibillion dollar advertising industry. Some of the best photographers in this field can
make over $10,000-a-day. Even newcomers can get more than a thousand dollars a
day from smaller agencies if they have enough skill and imagination. Look over a copy
of the magazine Photo District News (PDN) to see the type of work that will be
demanded of you. If you have a great portfolio or reputation for the type of work that
these agencies are using, go for it.

Corporate photography

As far as money goes, corporate photography is the next step down from advertising
photography.

Corporate photography includes annual report illustrations, executive portraits, public

relations material, and corporate news events. Much of the work is on location in
difficult lighting situations so you better have all your studio skills and then some.

Retail photography

Retail photography is the next step down from corporate photography with regard to
fees. However, the volume of business can often more than make up the difference. In
fact, selling professional photographic services to the public is the primary activity of
the photographic trade. It includes portrait, pet, wedding, and school photography.
Often you can start out only shooting on location until operating out of a studio is
possible.

If you prefer working with individuals to dealing with ad agencies, companies, and the
media, this may be your niche.

Editorial photography

Editorial photography has a powerful lure to photographers just starting out. It seems
to combine the freedom and glamour of photojournalism and art. But that is not really
the case. The editors that buy the images get to make the call on what is used and
how it is used.

Stock photographs have taken over much of the market especially in the lower
circulation magazines and textbook publishing but assignment photography is still alive

7
and well at the big general interest magazines. A comfortable living can be made at
editorial photography alone if you are at the top of the profession but most
photographers do it as a part time sideline. Even the top performers in this field could
do much better financially if they were in advertising. For nearly everyone in editorial
photography, it is a labor of love.

Editorial work is not hard to get from specialty magazines if low budget assignments
are acceptable. Published credits, tear sheets, or a cover credit in your portfolio can
be valuable enough to the newcomer to justify the poor rates. An added benefit is the
business experience gained in negotiating these assignments.

Specializations

Now that we have examined the markets, we can see how each specialty relates to
each market. Many specialties are tied to several markets that allow a much broader
customer base. There is no law saying you can't be in more than one specialty.
Determine what you want to pursue and make a plan.

News photography

The heyday of news photography with dozens of photographers on the staffs of

newspapers and weekly magazines is long gone. Those jobs still exist here and there,
but most work is assigned to wire service or news agency freelancers. Low pay and
unsteady work is the norm, so you better love constant hustle and two o'clock
deadlines.

35mm equipment is all you will need for news photography.

Sport photography

The photographers shooting for Sports illustrated have been at it for a long time.
Photographing sports as a sideline gives the photographer just starting out
opportunities for local papers covering community, high school, and collegiate events.
Fees are dismal, but its a start. As skill improves and you get better known you can
grow into a regional or national career.

All you really need is ordinary 35mm equipment but autofocus lenses help out a lot.

Portrait photography

The typical retail photographer is doing portrait photography. Portraiture can be a full
time or part time practice. Personal or family subjects can provide a good customer
base, but there is also a portrait market in the corporate and editorial fields. Frequently
executives and celebrities require portrait photography. This latter group of
professionals need portraits in their business, and can provide a good starting place for

8
part time portrait photography.

If you find yourself shooting people with quality results, you should consider portrait
photography as part of your product line. Keep in mind the editorial market often
requires portrait shots. Many publications will assign portrait shots even if publicity
shots are already available.

Medium- and large-format equipment is the rule for portraiture, with some location
shots in 35mm. A studio is a must unless location portraiture is chosen as a specialty.

Wedding photography

Wedding photography is a major segment of retail work. Such large sums are routinely
spent on weddings that an extensive wedding photography package can be justified.
With typical advance planning of several months, the photographer's schedule and
income become more predictable. The packages that are offered tend to consist of
candids of the event along with optional portraits often taken at the studio. Having a
studio or at least portable lighting and backdrops is almost a necessity.

Most wedding photographers use medium- and large-format equipment, Many

wedding photographers offer wedding videos.

Fashion photography

Fashion photography is glamour. It pays well if you are good enough to compete with
the best. Fashion is usually thought of as an advertising market but there is a sizable
editorial market too. Breaking in at the large fashion magazine level may seem
impossible but newspaper ad and catalog jobs are quite available to a capable
photographer starting out.

You had better have a studio with medium-format or larger equipment for this work.

School photography

Schools have wide photographic opportunities for the retail market: portraits, yearbook
pictures, team and club group shots, and more. A big school can require hundreds of
photographs. A good bookkeeping system or cameras that log every shot are a big
help.

Actor and model portfolios

Actors and models both need photographic portfolios. The fees are low but the
experience is super, especially for the beginning photographer. Also, your work can be
exposed to the sort of people that use photographers on a commercial basis.

9
Travel photography

If you dream of far away places, travel photography is your field. Advertising or
editorial photography promoting travel are both considered travel photography. One
great advantage to this field is the ability to shoot several assignments on the same
trip. Shooting places without people in them is scenic or postcard photography not
travel photography. People bring places and cultures alive and creates an experience
for the viewer. Shooting candids of people is often not an easy task. Many cultures
worldwide will resist having their image captured on film, so it will take special "people"
skills to photograph them.

The demand for travel photographs is fairly steady, but competition from local
photographers and stock agencies has increasingly cut the supply of assignments to a
much smaller piece of the pie. For this reason it has become a sideline field rather
than a full time pursuit.

35mm or medium format equipment is used in editorial travel photography. Advertising

may require large-format equipment.

Nature and wildlife photography

There is a large editorial, stock shot, and advertising market for natural subjects.
Making a living from nature and wildlife photography is nearly impossible initially, but
with years of determined effort, a photographer can gain experience and build a
reputation good enough to make a living at it.

Editorial work calls for 35mm equipment, while artistic work such as calendars use
medium- or even large-format equipment.

Real estate photography

Real estate photography serves the needs of the real estate industry. Most of the work
involves brochures published about expensive properties. Few photographers make a
living from this narrow field alone, but it can be a profitable item in a line of services.

Equipment can be 35mm or medium-format.

Catalog photography

Catalog work can be boring and demanding, but you can make a living at it. The
demand for catalog photography is increasing as mail-order marketing expands. Often,
the catalog has to be updated and issued monthly.

The demanding aspect of catalog work is the very precise dimensions and layout
requirements. The boring aspect comes from photographing products for marketing

10
qualities rather than your artistic desires. But it is steady repeat business with good
experience.

Specialized Subjects

These are specialized subjects for photographers that enjoy pets, motorcycles, old
cars, or boats and photography. It is an ideal sideline for the retail photographer. Some
photographers specialize in these subjects and go to shows and gatherings. Because
most events are held on weekends, the photo booth can be an perfect sideline
opportunity.

Beyond owners and breeders, specialized magazines need the same type of photos. In
addition, these subjects are common place in advertising.

Art Portfolio Photography, Copying and Reproductions

Artists need photographs of their work for presentation purposes and photographers
need copying for archiving and restoration. For the photographer such work is useful
as a secondary source of income.

Where Do You Fit In?

The choices are almost too wide. You will probably end up as a combination of these
specialties that will make you unique. Keep in mind, photography should be fun, but
you must earn a living too.

11
 BUSINESS STRUCTURE, AND STARTUP

Choice of Business Structure

All businesses must be one of three possible legal structures:

Sole proprietorship
Partnership (general or limited)
Corporation (regular 'C' type or close 'S' type)

Most start out as sole proprietorships, but a sizable fraction still choose the other two
options.

Sole Proprietorship
The one person owner business is a sole proprietorship. If your not a partnership or a
corporation you, are by default, a sole proprietor. Everyone is a sole proprietor right
now. Starting and ending the business is a snap. You get to make all the decisions
and the profits are all yours and taxed like personal income.

On the other hand, you may have sole control but you also have sole responsibility.
Debts, lawsuits, taxes and obligations can be extracted from the owner as if they were
personal liabilities. Many laws that benefit your employees don't apply to you
personally. You are taxed on the income of the business regardless of whether you
withdrew a larger or a smaller amount for your own use.

Partnership
A partnership is similar to a sole proprietorship except it is owned by two or more
people joined by a partnership agreement that can range from a handshake to a
detailed legal document. If this sounds a lot like a marriage, its because it is. All
partners own the total business, assets and debts. This means each partner can make
decisions, hire, fire, remove cash and borrow money without even consulting the other
partners who are all responsible for any liabilities incurred. If a partnership agreement
is carefully written, misunderstandings are less likely but the liability is still there.
Procedures for withdrawal of a partner must also be described in the agreement or else
the legal tangle can equal a divorce. On the plus side, a partnership can often bring
together the skill, financial resources, labor sharing and management ability that is
needed to start a business at all. In addition, the operation need not be any more
complex than a sole proprietorship.

A written, signed partnership agreement is recomended and it should specify:

1. What are the business goals.
2. What each partner contributes. Federal laws do not require partners to make equal
contributions or even make them at the same time.
3. How the profits and losses will be divided.

12
4. How and when withdrawal of funds and payments of profits are made.
5. Provisions for the death of a partner or if a partner wants out.
6. Defining the limits of financial and legal powers of each partner.

Partners are not employees and can only draw a "guaranteed payment", or share in the
profits of the partnership or both. Profits and guaranteed payments are personally
taxable to each partner. Self-employment tax that includes social security and
Medicare tax is also the responsibility of each partner. Partnerships must file a form
1065 "partnership income tax return" even though a partnership itself pays no taxes.

If you are considering a partnership, you should look into forming an S corporation
instead. It is more complex to run, but it does protect the owners without resorting to a
detailed partnership agreement. Another possibility is the limited partnership involving
one general partner that runs the business and one or more limited partners that only
invest money without further liability. Special tax laws apply and state or county
registration is usually required.

Corporation
A corporation is a business organization that exists as a legal entity separate from its
owners. It can have a single owner and a single share of stock or hundreds of
stockholders. Unlike its proprietorship or partnership cousins, the liabilities of the
corporation do not extend to stockholders beyond their original investments (unless
there is negligence by its officers). It can be bought and sold by simply marketing its
shares.

The reason corporations aren't more popular are complicated set-up, extensive
regulation and double taxation. The set-up isn't as bad as most people think. Books
are available at most large bookstores or libraries that can walk you through the
incorporation process. The regulation consists mainly of record keeping and
documenting meetings and decisions. Some good books that covers startup and
operation of a corporation and also comes with fill-in-the-blanks software are:

The Corporate Forms Kit by Ted Nicholas, $19.95 from:

Upstart
155 North Wacker Drive
Chicago, Il 60606-1719

or

J. K. Lasser's
Legal and Corporate Forms for the Smaller Business

Macmillan $34.95

13
Double taxation by means of corporate tax on profits and income tax on stock dividends
has a work-around for the smaller corporation that can treat its stockholders as
employees and pay out salaries instead of dividends. Another alternative for
corporations with not more than 30 or so stockholders is the S corporation. S
corporations have the advantage of no corporate tax and the ability to pass losses to its
owners so they can apply them to their personal income taxes.

How to Register Your Business

If the name of your business is different from your personal name you need to register
it. Your city or county clerk will register your business name and can tell you if it is
already in use. This is known as filing a Fictitious Name Statement.

Prior to starting your business, gather information on the following topics:

Licenses, Zoning and municipal business taxes - source: Your city or county
clerk

State, and sales taxes - source: Your state's Department of Revenue

Federal taxes and other mandatory employment deductions - source: Internal

Revenue Service Publications #334 "Tax Guide For Small Business," #15
"Circular E, Employer's Tax Guide" and #589, "Tax Information on S
Corporations." (if applicable)

Labor laws and immigration requirements - source: Internal Revenue Service

Publication, "Handbook for Employers" also try your state's Department of Labor

Consumer protection legislation - source: Your state's Department of Consumer

Affairs, usually it is under the Attorney General's Office

A partnership must obtain a federal identification number by submitting Form SS-2,

"Employer's Federal Identification Number." If there are to be no employees, mark the
form "FOR IDENTIFICATION ONLY." Otherwise the IRS will send
you payroll forms.

A sole proprietorship only needs to submit a Form SS-4 if there are employees
involved. It should be noted that family members even if paid a salary are not
necessarily employees.

Steps to Incorporating a Business

Corporations are licensed by the states, not the federal government. The requirements
and fees vary from state to state. Most libraries and bookstores carry a book that

14
describes incorporation in your specific state.

Typically several documents are submitted as part of the incorporation procedures The
primary document is a "certification of incorporation" that is often only one page. This
document usually must show the following information:
1. The name of the corporation.
2. Location of the registered office of the corporation
3. The nature of the business (Word this as broadly as possibly)
4. The type and maximum amount of capital stock to be issued
5. Names and mailing addresses of incorporators
6. Names and mailing addresses of acting director(s) until elections can be held
7. "Stated capital" required at time of incorporation (Most states have a minimum)

In addition to filing the certificate of incorporation, many states require one or more of
the following procedures:
1. Reserving a name with the state prior to filing the certificate of incorporation.
2. After the first board of directors meeting a statement naming the elected officers
must be filed.
3. Formal permission to issue stock must be Requested. This includes a description of
stock distribution and proposed use of the proceeds.

15
 RECORD KEEPING AND ACCOUNTING

Financial record keeping isn't just a good idea, its the law. Businesses must keep
records for both planning and tax reasons. However, there is no single official method
required for accounting records. What ever method you choose is ok as long as they
are in a form that can reconstruct your business activities.

Purpose of Keeping Books

Accounting measures, records, and interprets the condition and activity of your
business. It is required to document income and expenses claimed on your tax returns.
Beyond taxes, bookkeeping is important for the following benefits:

Information on your present financial condition that will allow you to make better
business decisions.

Bank credit is possible. Banks require at least a balance sheet for a business loan. At
least one years of records are needed to establish your financial condition.

It gives you detailed hindsight to see where your income is coming from and see where
your major expenses came from. This allows you to find the ripest areas for efficiency
and profit.

Requirements

Legally, your bookkeeping must keep track of both your income and expenses. The
ways to achieve this ranges from cross hatch paper with hand lettered headings to
customized computer software. The ledgers should be at least as comprehensive as
those included at the end of this chapter. The column headings should, as a minimum,
correspond to financial data required by the IRS tax forms. Additional columns can be
added that will help you visualize unique aspects of your business but in the end, it
should be an easy transition between ledger and tax form. If your running a small
operation and own a computer, software such as "Quickbooks" can meet most of your
needs. Even some of the larger wordprocessors such as "WordPerfect" or "MS Word"
Have a tables function that can do automatic mathematical operations.

The ledgers at the end of this chapter include:

Income ledger and year-end summary

Expenditure ledger and year-end summary
Profit & Loss statement
Petty Cash ledger

16
Credit ledger
Equipment ledger & Depreciation worksheets
Balance sheet Payroll ledger

In addition, a check/deposit ledger is needed but that can be associated with the
business checkbook. If cash must be used at all, a receipt or expense record should
be produced immediately. Try not to go to bed at night without the books up to date.
Its very easy to let this stuff get away from you.

Other Records

Associated with the ledgers are a steady flow of invoices, expense forms and receipts.
For small businesses, a monthly envelope system will work. For larger businesses, a
formal accounts filing system is needed. This file has different structure depending on
your type of business (e.g. wedding files are different from stock files). A computer
data base can be developed that cross-indexes names and dates.

Files for your slides, negatives and prints are a necessity for even a modest level of
business. These are your product, your inventory and they must be easily retrievable.
Everything that is an image comes in either a box, envelope, sleeve or slide mount. A
little printed label can be affixed to any of these containers without damage. An
ordinary wordprocessor set up to print tiny labels can double as a simple searchable
database by virtue of its word search capability. Information such as date, location,
subject, account, model release and category can all be stored in a computer file even
if it isn't all printed on the label. How the storage file is set up is once again a function
of what type of photographer you are. Using the example above, stock files are set up
by subject and wedding files are set up by client.

17
 Income Month of:

Ledger
Sales Date Taxable Sales Sales Tax Non-Taxable Sales Total Sales

Shipping Wholesale Other

Totals for month $ $ $ $ $ $

18
Income Ledger
Year-End
Summary
Totals for Month of Taxable Sales Sales Tax Non-Taxable Sales Total Sales

Handling Wholesale Other

January $

February $

March $

April $

May $

June $

July $

August $

September $

October $

November $

December $

Total for year $ $ $ $ $ $

19
 Expenditure Ledger Month of:

Date Check Payee Total Supplies Labor Non- Trans- Adver- Telephone Taxes and Other Non-
Number and employee portation tising & Utilities Licenses deductible
Postage

$ $ $ $ $ $ $ $ $

20
Expenditure Ledger
Year-end Summary
Total Supplies Labor Non- Trans- Adver- Telephone Taxes and Other Non-
and employee portation tising & Utilities Licenses deductible
Postage

January total

February total

March total

April total

May total

June total

July total

August total

September total

October total

November total

December total

Unpaid bills (Acc'ts. Payable)

TOTALS FOR YEAR

ADDITIONAL EXPENSES:

Returned checks ( from "Bad

Debts" folder)

Uncollectible accounts (from

"Bad Debts" folder)

Auto expense (if you take the

standard mileage rate)

Depreciation (from Equip ledger

& Depreciation worksheet

$ $ $ $ $ $ $ $ $

Profit & Loss Statement Month of : Year-to-Date

21
Income from ledger $ $

Beginning inventory $ $

Purchases $ $

$ $

Estimated inventory

$ $

Cost-of-goods-sold $ $

Gross Profit $ $

Other expenses

Rent $ $

Supplies $ $

Other $ $

Total Other Expenses $ $

Net Profit $ $

22
 Petty Cash Ledger

Date Payee Amount Balance

(Beginning balance) $

$ $

$ $

$ $

$ $

$ $

23
 Credit Month of:

Ledger
Sale Date Customer Invoice Number Total Sale Date Paid Memo
amount

24
 Balance Sheet
as of December 31
Assets
Current Assets
Cash $
Accounts Receivable $
Less allowance for bad debts $
$
Prepaid insurance $
Inventory (at lower of cost or market)

Other Assets

Equipment, at cost $

Less accumulated depreciation $

Total Assets $

Liabilities

Current Liabilities

Accounts Payable $

Loan payable, portion due within one year $

Long-Term Liabilities
Balance of loan payments $

Total Liabilities $

NET WORTH (owner's equity) $

25
PAYROLL LEDGER

Name___________________________________________________________________ Social Security____________________

Address_________________________________________________________________ Pay Rate_________________________

_________________________________________________________________

PAYCHECK CHECK NO. PAY HOURS GROSS F.I.T SOCIAL MEDICARE STATE OTHER WITHHOLDING NET PAY
DATE PERIOD REG O/T SECURITY INCOME

EQUIPMENT LEDGER AND DEPRECIATION WORKSHEETS

26
DATE DESCRIPTION METH. WRITE NEW % COST REDUCTION WRITE BAL. TO DEPR. BAL.TO DEPR. BAL.TO DEPR. BAL.TO
OFF OR FOR INV. OFF BE DEPR. 19 _ BE DEPR. 19 _ BE DEPR. 19 _ BE
PERIOD USED CREDIT DEPR.

TAXES

27
Local Taxes

Local taxes usually take the form of business license fees and property taxes. Property
taxes may mean more than real estate. Often your office and studio equipment is
assessed as capital equipment and taxed as if it were real property. Ditto with vehicles
of any kind. Check with city or county tax offices for a complete picture.

State Taxes

State taxes often include income, sales and property taxes. A call to your state tax
office should get you a package of instruction and forms.

In most states the sales tax is at the state level. Some states tax goods but not
services unless the goods and services are commingled. An example of this type of
pitfall would be an invoice with a combination of photographs (taxable goods),
expenses and services (non-taxable). Because they all appear on the same invoice the
entire amount is taxed because they all become part of the goods. Even if photographs
are treated separately, this may be confusing. Is a photograph a product or a service?
Interpretation of this question varies from state to state, so get a firm answer from a
local tax specialist.

In every state that has a sales tax, the business collects it for the state and must have a
business tax number issued by the state tax office.

Federal Taxes

Volumes have been written on dealing with federal income and employment taxes so
this thin chapter is not even close to a complete guide. If your looking for free
guidance, the IRS has a set of publications directed to the small businessman. They
are: Internal Revenue Service Publications #334 "Tax Guide For Small Business," #15
"Circular E, Employer's Tax Guide" and #589, "Tax Information on S Corporations."

What I have tried to do is to point out issues that most impact the photographic trade or
small business in general.

Cash vs Accrual Accounting

Photographers often receive cash advances on work to be performed. How these are
handled depends on whether you use cash or accrual accounting method. If you use
cash accounting the money is considered earned income when you receive it and it is

28
subject to taxes. Any part of it you return later, is a reduction in your income at that
later time. Accrual basis bookkeeping records income at the time it is earned, not when
it's paid. At year-end, if you have work partially completed, a fraction of the advance
may have to be reported on your tax return.

Uniform Capitalization Rules

Photographers have a special IRS exemption from the burdensome "uniform

capitalization rules" that apply to craftsmen and manufacturers. Makers of goods can't
deduct production expenses until the goods are sold. The uniform capitalization rules
do not apply to self-employed photographers. They can deduct their costs the same
year they are incurred. This applies to individuals who produce photographs,
photographic negatives or transparencies but not to film makers.

Business Loss vs Hobby

If you show a consecutive loss for three out of five years, the IRS can determine your
business to be a hobby and disallow any losses. However, the IRS may allow the
losses based on evidence that you are operating a real business with a profit motive. A
record of marketing activity is usually sufficient. Many businesses with losses for
several years get by without ever being audited by the IRS. If you want to hold the IRS
at bay until the full five years are up, you can by filing Form 5213, Election to Postpone
Determination. This form must be filed no later than the third tax return of the business.

Travel

For travel to be deductible, it must be entirely business related with any personal travel
expenses removed. If travel is primarily personal, no deduction for the travel itself is
allowed except the cost of business activities alone. This is an obvious dilemma for the
travel stock photographer. Its the same sort of problem as was discussed earlier under
business vs. hobby, with the same sort of remedy. Sales of the travel photographs or a
travel sales history is the best defense.

There are two ways of establishing travel expenses, expense account or perdiem.
Expense accounts reflect actual detailed and receipted records of expenses while
per-diem is a fixed allowance acceptable to the IRS. The rates vary year to year and
location to location. IRS rates are found in IRS publication #1542, Per Diem Rates,
and general travel rules are found in IRS publication #463, Travel, Entertainment and
Gift Expenses.

29
A final word on travel. When overseas travel is necessary, returning home through
customs with bags of foreign made cameras and equipment can be simplified with a
customs receipt. You can get this useful slip of paper by lugging all your equipment
down to the customs office at any US coastal city or international airport. They will
record a description of each piece along with its serial number, if available, and certify
it. The list is also useful at foreign customs exams where they want a declaration list of
all the equipment your bringing in.

Vehicle Expenses

Vehicle expenses are handled similar to travel with two methods available. The first
involves a record of actual expenses and deprecation that is prorated for personal use.
The other is a flat per mile rate with a separate per mile rate deducted from the
vehicle's depreciation. These rates vary from year to year so you should keep current
with the IRS travel publications.

Depreciation

When a piece of durable equipment is brought into the business, some of the cost can
be written off the first year but some of the cost may have to be spread out over five
years. Most office equipment, photographic apparatus and vehicles are considered
"five year equipment." Here's how it works. If you are a small business, (less than
$200,000/yr equipment purchases) you can deduct up to $17,500 the year of purchase
under "Section 179 Deduction" rules. Your write off can't exceed your income, but you
can carry it forward. The alternative is to distribute it over five years using your choice
of three methods. These are presented in the table below:

Year MOD 150% Straight Automobile

ACRS ACRS Line Limits

1 20% 15% 10% $3060 max

2 32% 26% 20% $4900 max
3 19% 18% 20% $2950 max
4 12% 17% 20% $1775 max
5 11% 16% 20% $1775 max
6 6% 8% 10% $1775 max
per year

The automotive numbers are subject to change so check the IRS instructions each
year. Using the automobile limits, any vehicle costing more than $16,235 must be
Depreciated over more than 5 years.

30
Start Up Expenses

Expenses incurred prior to your first income producing activity are treated like
equipment (capital investment) and must be amortized over five years. The solution to
this problem is to start the business at home and don't set up a studio until after the
"official" start of the business.

Office in the Home

IRS Publication #587, Business Use of Your Home, details the rules covering home
office/studio. Basically, you may prorate the cost of operating your home by the
percentage of floor space used.

Self Employment Tax (SECA)

Social Security and Medicare taxes for individuals and partners kick in at $400 income.
Once you reach that point, you pay The SECA tax that represents both employer and
employee halves of the Social Security and Medicare taxes. The tax applies to all of
your business income, not just the part above $400.

Estimated Tax Payments

If you will owe more than $500 in taxes, the IRS wants quarterly payments. IRS
Publication #505, Tax Withholding and Estimated Taxes, details the requirements.
Often your bank can set up a special tax account and automatically transfer the funds
to the IRS.

Entertainment and Gifts

A rule of thumb for gift giving is, no more than $25/year to any individual and free
samples don't count. Entertainment in general can only be 80% deductible. If
entertainment becomes a major expense of your business, expect some questions from
the IRS.

31
Interest

Interest payment write-offs are very complicated and they depend on the type of debt.
Debt on assets are deductible but real estate and non-assets must be capitalized.
Some interest, such as tax interest, is non-deductible. if a large amount is at stake, use
a tax accountant.

Insurance

Insurance is about as complex as interest. Hazard liability insurance is deductible.

Health insurance is 25% deductible for individuals but it becomes 100% deductible if
you have employees that can all have the opportunity to join the plan. Other types of
insurance that are considered benefits such as life insurance are not deductible at all.

32
Filing Dates for Tax Returns
For calendar-year businesses the dates of IRS form submittal are given in the following
table:
Form No. Use Applicability Key Dates
Special use forms:
4868 4 mo. extension for filing Indiv. 4/15
7004 6 mo. extension for filing Corp 3/15
8736 3 mo. extension for filing Part. 4/15
2553 Corp. electing to become S corp. Corp 4/14
5213 Election to postpone determination Indiv. 4/15
4562 Vehicle expenses & depreciation Indiv./Part./Corp 4/15

8829 Business use of home Indiv./Part./Corp 4/15

Normal use forms:

1040 Income tax return Indiv./Part./Corp 4/15

W-2 Withholding info to employee Employer 1/31, 2128

W-3 Withholding info to IRS Employer 2/28

W-4 Employee deductions for withholding Employer end of year

941 Income tax & SS deposit Employer 1/31, 4/30, 7/31,

10/31

940 Fed unemployment tax return Employer 1/31

5500 Employee benefits Employer 7/31

508 Fed unemployment tax deposit Employer 1/31, 4/30, 7/31,

10/31

1099-MIS > $600 fee, rent or > $10 royalties Indiv. /Part. /Corp 1/31

1099-DIV > $ 10 dividend payment Corp 1/31

1099-lNT > $ 10 interest payment Indiv./Part./Corp 1/31

1120 Corp. income tax return Corp 3/15
1120S S-Corp. income tax return Corp 3/15

Sch C Income from business Indiv./Part. 4/15

Sch SE Self employment tax Indiv./Part. 4/15

1040-ES Estimated tax for individuals Indiv./Part. 4/15, 9/15
1065 Partnership tax return Part. 4/15
Useful Publications from the IRS

33
 Number Title

17 Your Federal Income Tax

334 Tax Guide for Small Business
463 Travel, Entertainment, and Gift Expenses
505 Tax Withholding and Estimated Tax
523 Tax Information on Selling Your House
525 Taxable and Nontaxable Income
533 Self-Employment Tax
534 Depreciation
535 Business Expenses
536 Net Operating Losses
538 Accounting Periods and Methods
541 Tax Information on Partnerships
542 Tax Information on Corporations
544 Sales and Other Dispositions of Assets
550 Investment Income and Expenses
551 Basis of Assets
553 Highlights of (the Year's) Tax Changes
560 Retirement Plans for the Self-Employed
583 Taxpayers Starting a Business
587 Business Use of Your Home
589 Tax Information on S Corporations
590 Individual Retirement Arrangements (IRAs)
917 Business Use of a Car
946 How to Begin Depreciating Your Property

U.S. Government

Internal Revenue Service

Eastern Area Distribution Center
P.O. Box 85074
Richmond, VA 23261

Central Area Distribution Center

P.O. Box 8903
Bloomington, IL 61702

Western Area Distribution Center

Rancho Cordova, CA 95743

34
 PRICING FOR PROFIT

It is possible to write an entire book on just the subject of pricing your work. In fact,
several have been published and they still leave you wondering what you should
charge. There is no magic single answer to the question. There are only pathways to
follow to find what your work is worth.

The major variables include :

Local cost of living. -- It's far cheaper to do business in Idaho than in New
York.

Nature of the business -- Wildlife shooting in nearby mountains will cost only a
fraction of the cost of a Sports Illustrated swimsuit
shoot.

Market -- Portraits or weddings are priced locally and magazine

or stock are priced nationally.

You are the only one that can determine prices for your photographic products and
services. There are books and associations that can help you, but you will have to do
your own research. Your bottom line will be based on what branch of photography you
choose, where you work, where you sell your work, how you manage your operation,
and how you stand among the competition.

Retail Photography
If you plan to start a retail operation, either from a studio or from your home, a local
price survey is needed. The easiest way to do this, if you have the time to wait, is to
visit one of the local bride shows they have every spring at large shopping malls. Its a
simple matter to gather up all the brochures from every studio in your region. From
these brochures the price ranges for every service and package can be compiled. An
example of this sort of survey for 1996 in eastern Idaho is presented on the following
pages. All this survey tells you is what the competition is charging. Your prices will
depend on your expenses and how you run your business.

Most portrait photographers calculate the cost of operating the studio, equipment
deprecation, film, print finishing, retouching, along with personal income needs and try
to translate that into specific prices. Often the costs are divided between a sitting fee
and the charges for prints.

In dealing with the competition, try to lead them with quality and service not with prices
so low that nobody makes money. You are in business to make profits, charging
anything less than what you could be getting gives your profit to the customer not to

35
you. If you start out pricing in mid-range for your area, you can then raise your rates as
your reputation for quality and service matures.

The photographer owns and should retain the negatives of each assignment. The
contract should indicate this and include the pricing of future prints. Additional prints
have always been a significant source of income for the retail photographer. The retail
client has to pay someone to make prints from the negatives anyway so it might as well
be you that gets their business.

Retail photographers should require payment upon or prior to delivery of any

photographic products. For weddings and such, a pre-deposit of at least 50 percent
should be part of the contract. The road to financial ruin is paved with photographers
that handed over the pictures without full payment. If they want credit ask to put it on a
credit card.

Commercial Photography
In commercial photography, stock agencies or publications often have control of your
prices. If you work through a stock agency and it sells rights to one of your shots, you
will get a portion of what the agency negotiated. In the case of magazine and book
publishers, that publisher's going rate is what you will get paid, unless you negotiate
more. If you choose the negotiation path, two sources of price information are very
useful. The first is the annual book:

Photographer's Market, M. Willins, Writer's Digest Books.

This book lists every publisher that you would ever encounter and the rates they will
initially quote you. The second source is :

American Society of Media Photographers Inc. (ASMP)

419 Park Avenue South
York, NY 10016
(212) 889-9144.

The ASMP periodically publishes suggested rates for the profession to strive for. This
rate structure is summarized in the data that follows. The differences between the first
source and the second is the gap to be negotiated. If you're going to win at negotiation
you better have a product better than the competition or unique work. Without some
form of leverage the negotiations will end quickly.

Typically photographers sell only limited rights to their photographs and never sell the
copyright. The client only buys the right to use the image for a limited number of times
and over a limited time period. Good images can be sold over and over again if the
sale of rights are done properly. Obviously, for enough money a buyout can be

36
considered, but rarely is a client that anxious to pay a very large sum.

A little legalese is in order here. There are only about half a dozen terms that you
really need to know:

Nonexclusive unlimited use The client is granted multiple use of the image for any
purpose, but the photographer has no restrictions on reselling the image.

Nonexclusive limited use The client is granted use of the image for a specific
purpose, but the photographer has no restrictions on reselling the image.

Exclusive limited use The client has exclusive use of the image but for only a limited
specific purpose.

Exclusive unlimited use This is called a buyout. The client has exclusive use of the
image for any purpose and as often as the client wishes. Neither the client or you are
allowed to resell the image to a third party. If the copyright were to be sold to the client,
you would lose all control over its use and resale.

Geographic and Time limits The rights described above can have time limits and
geographic limits placed on them. Beyond the specified time and geographic limits,
the photographer is free to use the image at will. Magazines often demand "First North
American Rights." Once the issue containing the image comes out, the photographer
can resume resale efforts with the image.

Pricing Practices

Advertising Photography

Every advertising assignment is different. Budgets, skills and creativity demands can
range from the local used car dealer ad to a national account. The starting point is day
rate plus expenses, weather days, and margin. A creative fee can be added if the
assignment is technically demanding or if a creative director gives the photographer
discretion in creating the image. Finally, a usage fee will top it off based on rights
being bought, audience size, and duration of use.

Some photographers have half-day, hourly, daily, and weekly rates, each a bit more
economical than the shorter rate. Fees are often adjusted by local, state, and national
location.

It is typical to charge time and a half overtime for work exceeding eight hours in any
day and for any weekend work. All rates should be portal to portal, and include

37
mileage, travel expenses, operating costs, and materials. For food and lodging there is
a choice between per diem or actual expenses.

Overhead should be included as part of your hourly rate or day rate. Rent, utilities,
office supplies, depreciation, and anything else that's not a direct material or labor cost
must be pro-rated over all the hours you bill over an entire year. Don't separate it out
on your bill but include it as part of your personal billing rate.

Corporate Photography

Pricing of corporate photography has similarities to advertising photography although it

pays a little less. The usage fee is much smaller because the use of images is typically
very limited. Creative fees, on the other hand, can be much larger due to a tendency of
corporate clients to depend on the photographer to double as a creative director.

Editorial Photography

The industry increasingly meets photo needs from the stock agencies on a price per
image basis. If you are working through a stock agency, your cut may only be half of
what the client pays. The few editorial assignments that are given out by the big
magazines are paid on a similar negotiable fee plus expenses basis as advertising and
corporate photography.

Books

There are two common forms of compensation for coffee table books, as they are
called. The photographer gets a flat fee, or royalties on the book sales often with an
advance on future royalties.

Textbook publishing has gone almost entirely to stock sources.

Stock Photography

The pricing of stock photographs is entirely different from assignment photography.

Stock pricing is by the image and varies from buyer to buyer. Stock photography has
become the big growth area in commercial photography but the sellers have increased
much faster than the buyers. In such a buyer's market average photographs are
usually purchased on a take-it-or-leave-it price ceiling. This does not mean the same
price to every customer. A national ad campaign should have to pay many times more
for an image than a local marketing brochure. Know your prices for every market and
usage. Never sell an image for significantly less than market value.

38
 Prices

Edit Adver Assign

Magazines (National) $1000 $1900
$500 pd/$500 page
(National ad $15000+/Dbl pg)
Sunday Supp. or Magazine (Regional or trade) $850 $1100
$400 pd/$400 page

Daily Newspapers (Large >300K) $750 $1500

Daily Newspapers (Small <300K) $200 max

Brochures $1200

Corporate work $1000-1500 $500-1K pd/$500-1K pg

(1-3 hr 25% off)
Buy-outs = 5 x base price, 1 yr unlimited use = base+200%, 1 yr exclusive use = base+125%,
Rate multipliers

Space used: Circulation:

1/4 pg. .5 3 million+ 1.2
1/2 pg. .6 1-3 million 1
3/4 pg. .75 500K-1 mill .75
Full pg. 1 250K-500K .6
Dbl.pg. 2 100K-250K .55
Cover 1.5+ Under 100K .45

Multiple use: Type:

1-3 baserate+20% Color 1
4-10 baserate+50% B&W .4-.75

Television

Circulation: Advertising News

National network $800-1500 $400
National cable $700-1250 $300
Regional/cable $500-750 $200
Local cable $250-500 $150

Internal (house) testing: Flat fee $300-500.

Additional 13 week cycles: Base price plus 25%.

Billboards

Locations 1 Yr.
City(less than 12) $1200
State (12-40) $1750
Region (up to 100) $2750
National (100+loc) $3000
20% more or less for each 3 Months

Greeting cards & textbooks $500 flat

39
Studio Rates

Sitting fees:

4 to 5 poses $13-$15
8 to 10 poses $24-$40
8 to 10 poses on location (in-town) $35-$75
8 to 10 poses on location (out of town) $75-$100
4 to 16 poses glamour $40-$65
8 to 32 poses glamour $65-$80

A-La-Carte Prints:

Plain Color Retouched &

Size or B&W Enhanced Deluxe

4x5 $5-$11 $25-$30

5x7 $10-$18 $31-$32
8x10 $16-$28 $37-$40 $48
11x14 $39-$65 $78-$80 $95
16x20 $99-$120 $146-$155 $175
20x24 $140-$199 $195-$235 $225

Packages: (note- 1 unit = 1 8x10 or 2 5x7 or 4 4x5 or 8 wallets)

48 wallet $36-$75
2 passport $10
4 unit package $50-$100
6 unit package $100-$150
student discount 20%

Wedding Packages:

30 to 50 shots @ $10-$32/unit
$50/hour
$125/location
$1/mile

If 35mm film is used, the negatives often go to the customer but prints are limited to 8x10 max.

Discount chains and non studio photographers can be much lower.

Studios in urban high cost of living areas may be much higher.

40
 FINANCING START-UP AND GROWTH

Personal Funds

The nice thing about using personal savings is your easy access to them. There are no
applications, no presentations to lenders, and no paperwork. Also consider sources
such as a home equity loan or the cash value of a life insurance policy.

Having your own start-up capital ensures that you retain control of your business.

When most photographic businesses start out, the cost of operation has usually been
estimated with a fair amount of precision. The length of time before the business
improves to the point that a steady income is established is much more of a guess. If
you can't cover your living expenses for three to six months while your business is
starting then you should consider a part time business along with a part time job.
Raising money for your personal expenses is much harder than raising money for your
business.

Friends and Relatives

Friends and relatives often can be a valuable source of business capital. Their
knowledge of you and your abilities give you a high credibility and they may be willing
to invest in your business even when others refuse you credit. Repayment terms will
probably be more flexible than those of commercial lenders. Be careful, because
friends and relatives know you so well, they may, through good intentions, try to
become involved in the operations of the business. They may feel their investment
entitles them to a routine say in how the business is run. No matter who gives you
money, it is wise to keep it formal with a written agreement. That way the relationship
will remain professional and it will minimize future misunderstandings.

Debt Financing

Short-term loans are often needed to cover cash flow problems. Equity loans and
revolving credit lines are the usual types of credit used to cover this situation. This
type of short-term borrowing works well in good times. However, if your business sees
bad times, short-term borrowing can be cut off or called in by a bank, leaving you short
of operating cash.

Long-term loans that are amortized monthly can stabilize your operating cash.
Amortized monthly means the monthly payment is constant. In a seasonal peak
demand situation, the excess cash should be invested in liquid savings accounts or
other safe investments. Don't just keep the money on hand to avoid a short-fall when
cash is needed. Keeping excess cash on hand can slow down your return on

41
investment.

There is a financial term called leverage, which is the use of other people's money to
make a profit for yourself. Obviously the less money you put into the business the less
risk you take and the more risk your investors and lenders take. Your contribution is
viewed as an incentive to work hard to make the business successful. If your fraction
of the investment amount needed to get the business established (called equity) is less
than 25 percent, most lenders won't touch you. Of course, lots of collateral or an
outstanding past management history can bring about an exception to this rule.

Banks

Banks are set apart from other financial institutions because they make loans and
accept deposits. They are regulated in such a way that they must be prudent with the
depositors money and they can make only the safest of loans. They come in several
varieties, such as thrift institutions, credit unions, savings and loans, or commercial
banks. Their category can indicate the kinds of loans these banks specialize in
making. Savings banks specialize in consumer loans. Commercial banks prefer
business loans. However, don't give up on a savings bank for a business loan. It may
know you better or have more money available. Keep in mind when dealing with any
bank that bankers don't like risk. Safety of their funds is always the highest concern. It
may be hard for a starting business to borrow from a bank since established
businesses that are competing for the same money are viewed as having less risk.

Don't just limit your efforts to small community banks. Many nation-wide commercial
banks have sizable set-asides for small business loans.

U.S. Small Business Administration (SBA)

SBA has a Congressional mandate to assist in meeting small businesses financing

needs. The SBA's 7(a) loan program, the Small Business Investment Company (SBIC)
program and the new Greenling revolving line of credit are the primary tools in meeting
this mandate. The SBA Loan Guarantee Program provides financing in cases in which
banks feel uncomfortable with the risk by allowing banks to recover up to 90 percent of
their money from the SBA if the borrower defaults. The SBA guarantees the loan up to
the maximum of $750,000. There is no lower limit, however, most banks prefer to work
with amounts over $10,000.

The guarantee allows banks to loan above their normal regulatory limit. This feature is
an incentive for small banks. Loan terms are typically better than for ordinary bank
loans. An SBA loan can be longer than bank loans with lower payments. Your equity
that is required for an SBA loan can be 30 percent versus the 40 to 50 per-cent bank
requirement. The interest rate also less because the SBA has established a 2 percent

42
above the prime rate upper limit.

Even the application is easier if the loan amount is under $100,000. The Luetic loan
program has reduced the old one-inch folder of paperwork down to a two-page applica-
tion.

Direct Loans smaller than $150,000 are available to borrowers who are unable to find a
lender in spite of a good faith effort to finance the project with a private lender.
However, direct loans are available only to Vietnam-era and disabled veterans, the
handicapped, low-income borrowers and businesses located in high unemployment
areas.

Several types of businesses are not allowed to receive loans directly from or
guaranteed by the SBA. Businesses dealing in the creation, origination, expression or
distribution of ideas, values, thoughts or opinions, currently are not eligible. Therefore,
if your photography business is journalistic in nature or inseparably related with the
television or printed media, you're out of luck. Everyone else should be careful to avoid
the above words or the term "media" in any application.

Application begins with a loan request at a bank along with supporting documentation.
Most of the information comes out of your business plan.

If the lender can't or won't make the loan, the applicant should request that the lender
utilize the SBA Guaranty Program. If the lender is agreeable, the applicant then
completes a formal application for the SBA. If the lender is not agreeable, the applicant
can still apply for a direct loan from the SBA if s(he) falls into one of the categories of
special loans discussed above.

The SBA generally deals only with the private lender if a guaranteed loan is involved.
The lender in turn interacts with the applicant.

43
The table that follows is a summary chart of the special loans of the 7(A) program.

Amount Maximum Interest

Program Up To Maturity Rate Eligibility

Regular Business Loan 7-10 yrs for Set quarterly Must meet SBA's
Direct-- $150,000 working cap. up to 2.75% size and policy
above prime

Guaranteed-- $750,000 10-25 yrs for M & E

(SBA Share) 25 yrs for bldgs

Veterans Loan 7-10 yrs for Set quarterly Must meet SBA's
Direct Only- $150,000 working cap. size & policy &
10-25 yrs be Vietnam-era
for M & E veterans and
25 yrs for bldgs veterans with
30 percent or
more disability

Handicapped Loan
Direct-- $150,000 7-10 yrs for 3 per cent Must meet SBA's
working cap. size & policy &
10-25 yrs be operated by or
Guaranteed-- $750,000 for M & E for the handicapped
(SBA Share) 25 yrs for bldgs

Seasonal Line 12 months Up to 2.75% Must meet SBA's

of Credit above prime size & policy
Guaranteed Only $750,000
(SBA Share)

7(a)11 Loan 7-10 yrs for Must meet SBA's

working cap. size & policy &
Direct-- $150,000 10-25 yrs 3 per cent be low income or
for M & E located in a high
25 yrs for unemployment area
Guaranteed-- $750,000 buildings Up to 2.75%
(SBA Share) above prime

Small Loan Program

General $75,000 Lender retains one
half of guaranty
fee

Greenling $750,000 5 years Negotiated up Must meet SBA's

(SBA Share) to 2.25% above size and policy
prime

Disaster Loans 3 per cent President or SBA

declares disaster
area & physical or
economic damage

44
The SBA is the mother lode of everything you could want for small business
information. Forms and publications are available at:

Small Business Administration (SBA)

1441 L Street Northwest
Washington, DC 20416
(202) 653-6600

SBA Publications
P.O. Box 30
Denver, CO 80201

Free guides on business and shareware software are available at their Internet Home
page:
http://www.sbaonline.sba.gov/index.html

Small Business Investment Companies (SBIC)

SBICs are licensed by the SBA and work under its guidelines. They are state
chartered, privately owned organizations. The SBICs make direct loans to
entrepreneurs for start-up and expansion as well as equity investments.

Your business must meet several conditions in order to receive assistance from these
sources.

The Directory of Operating SBICs is available by visiting the SBA regional or district
office nearest you or by writing to: Deputy Associate Administrator for Investment, U.S.
Small Business Administration, 1441 L Street, N.W., Washington, DC 20416.

Additional information can be obtained by contacting the National Association of Small

Business Investment Companies located in Washington, D.C.

Economic Development Commission (EDC)

The Economic Development Commission is a part of the U.S.Department of Commerce.

Its mission is to lends to businesses in order to create new jobs in economically
deprived areas. There are several qualifying conditions that must be met, with location
the dominating one.

The EDC can be contacted through the U.S. Department of Commerce in

Washington,D.C., or your local office of the Department of Commerce.

45
State Financing Programs

Many states have programs available to small businesses who need financing. Most of
these programs are tied to economic development and job creation. Some of these
programs can take a second mortgage position to existing debt and charge lower
interest rates. Many special set-asides for women, or minorities are typically found in
these programs.

Consumer and Commercial Finance Companies

Consumer finance companies and commercial finance companies deal in small loans
secured by collateral. Most finance companies limit loans to several thousand dollars.
They will consider loans with 100 percent financing and can be more flexible about
lending because the loans are secured by an asset. However, Loans from this source
are more expensive because they are considered to be more risky. In some cases, the
interest rate you will be charged will be the highest allowed by law for your state. In
addition, failure to repay your debt will result in the seizure of the item that you
purchased with the funds.

46
 MARKETING YOUR PHOTOGRAPHY BUSINESS

So often at the start up of a studio, the entrepreneur has to some degree the attitude
"build it and they will come." Only a modest fraction of time and resources are allotted
to marketing. When reality finally sets in, more than half your time can be tied up in the
marketing effort, at least during the early years of your business. Much of the effort
involves maintaining a reputation for quality and service.

Advertising

The need for advertising is dependent on the branch of photography. If advertising is

needed, you must decide on the form of media and budget.

Retail photographers typically use the Yellow Pages, newspapers, radio, direct mail,
and brochures.

Commercial photographers typically use display advertising and photography

directories specifically aimed at photo buyers.

Effective advertising pays for itself and then some but with advertising being so
expensive a bad choice can be a dreadful financial burden. Hiring an agency is a good
idea for a mature business with sales that can absorb the additional cost of an agency
fee. Start-up businesses need to take it slow and careful with an emphasis on low cost
public relations and limit advertising to the minimum.

All advertising should meet certain criteria:

It has to be targeted at users in the geographic market for the photographer.

It has to single out the photographer from all others.

It has to be an affordable loss if the ad fails to produce business.

The path to effective advertising is a road with many branches. There is no best way.
You must explore for your individual situation the various forms of advertising and
choose those which will most influence customers and be cost-efficient.

47
Medium
Yellow Pages. Telephone
book advertising is a must
for retail photographers.
Although yellow page ads
don't seem to be highly
effective, practically all
photographers take out an
ad. Yellow pages staff can
assist you with layout.
Newspapers. Newspapers
are leaders among the
media used for localized
advertising. The advertising
rates will be proportional to
the newspaper's circulation.
Advantages
Directories are in virtually
every home.
Anyone looking in your part
of the Yellow Pages is
looking for a photographer.
A single ad lasts all year.
Can help you describe the
differences between you and
your competition.
You have monthly payments
instead of one lump sum.
Readers accept newspaper
ads and even seek them
out.
The ads can be as large and
as detailed as you wish.
Your ad can reach specific
groups of people by
selecting different sections
of the paper.
Newspapers can be read at
leisure. A newspaper ad can
include details, such as
phone numbers, coupons
and prices.
Disadvantages
Unless people look in your
part of the Yellow Pages
they won't see your ad at all.
Only one opportunity a year
to place an ad with a full
year commitment.
Your competitors have ads
next to yours.
If your page is cluttered with
advertising, it can bury your
ad.
Newspaper ads are
expensive relative to other
media.
Newspapers are short-lived
and discarded daily.
Quality of reproduction is so
poor it will do injustice to any
photograph.
48
Tips
Don't clutter your ads. Keep them concise and clean with enough
information so the reader can to make a contact decision. Don't include price
information.
The deadline for ads is in the autumn. You may have to operate much of your
first year without a listing.
Buying space in weekly TV and entertainment guide sections or weekend
supplements are a way to make newspaper ads last longer.
Newspaper circulation goes down on Saturdays and rises to a peak on
Sundays. A newspaper is also read most thoroughly on Sunday.
Location is important, so if your targeting a audience or need an outside
position for ads that have coupons, specify the section that you want your ad
to appear. Don't be afraid to pay a surcharge for exact location if you need it.
Include your company name and logo, address and phone number in the ad
but don't crowd or clutter the layout space.
Medium
Radio. In many places,
radio provides a medium
that is highly competitive for
local advertising.
Brochures. Commercial
photographers have long
relied on brochures as mini-
portfolios. Portrait
photographers use them as
handouts and rate listings.
Direct Mail. Mail advertising
is effective with the right
mailing list.
Advantages
Specific groups can be
targeted (for example,
commercials on rock
stations for high-school
portraits).
Commercials can't be
avoided or skipped.
Radio personalities have
high credibility with their
audience. When a radio
personality announces a
commercial, it's often
received as an
endorsement.
Brochures provide the most
informative media with
virtually no restraint on
detail.
You can control the quality
of printing and paper to best
present your work.
Direct-mail is the most
focused medium for
targeting the specific market
you are trying to reach.
It is the best approach to
produce repeat business.
Disadvantages
The large number of stations
in urban areas causes the
audience to become
fragmented. To cover a
broad audience, time must
be purchased on several
stations. The effects of
diluting the advertising over
multiple stations is loss of a
concentrated message.
Good time slots are very
expensive.
Message duration is usually
brief, with minimal detail.
Brochures are expensive
and are not effective unless
used with a highly targeted
market.
Response rates are often
low. One half to two percent
is a typical range of return
rates.
Even bulk postal rates and
volume printing may not
make this method
affordable.
49
Tips
The effect of advertising is cumulative. Several small ads are better than a
single large one. It's also better to group your ads together than to widely
distribute them.
Radio commercials are most effective when tied into simultaneous print ads.
People listen to the radio only during certain times of the day. The morning
and evening driving slots, usually from 6:00 to 9:00 A.M. and 3:00 to 7:00
P.M. are considered prime times. When you buy the time you'll have to
specify what time period you want to the radio station .
Sometimes stations will barter a promo for prizes they can give away to on the
air.
Radio can effectively present an image or a couple ideas at best. It is a poor
place for prices and telephone numbers. You should refer the audience to your
Yellow Pages ad.
Radio audiences peak in size in the spring and summer, as opposed to
television viewers which increase in the fall and winter
The right mailing list is the key to successful direct-mail. You can make a
computerized list yourself or buy a list from a list company already on labels.
Use a reply card with a Business Reply Postage Number so you will only pay
for the returned cards.
Medium
Magazines. Magazine
advertising is often effective
for certain types of
photographers.
Specialty Advertising.
These are promotional items
such as pens, calendars,
and tee shirts carrying an
advertising message.
OUTDOOR ADVERTISING
Billboards, benches,
posters, signs and transit
advertising all share the
same category.
Advantages
The quality of the
reproduction and paper are
superior to newsprint.
Niche or local publications
allow precise targeting of a
market.
You can include as much
detail as you wish, and ads
can be clipped and saved.
Messages tend to be more
image-oriented rather than
price-oriented.
People like them, use them,
and carry them around as a
constant reminder
People that pass by are
exposed to your message
over and over for months
because it is in one of their
pathways to work, school, or
shopping.
Disadvantages
Magazines are passive so
readers can skip the ads.
Even city and regional
magazines can have high
rates.
The lead time is long, often
months.
Rarely do you have space
for more than a name and
logo
They have a very slow return
period for actual sales, often
months or years.
Outdoor advertising targets
an audience in motion.
Messages must fit in a 2-3
second glance time.
The typical three month
contract is not very flexible.
50
Tips
Most magazines will send you an "Ad Kit" on request. It includes demographic
and, reach data, their rate schedule and a sample magazine.
There are two categories of magazines: trade magazines and consumer
magazines. Trade magazines are publications that go to certain types of
businesses, services and industries. Consumer magazines are generally the
kind you find on the average newsstand. Investigate which type would do your
business the most good.
The same ad can run 3-5 times before its appeal lessens.
Local bridal catalogs that are distributed for free are highly targeted and very
effective.
Ask around before buying specialty advertising through the mail and never buy
it over the telephone.
Specialty advertising is a great goodwill gesture but don't do it unless you have
a beneficial distribution plan.
Outdoor advertising is best when coupled with other media. It should be
coordinated with other advertising.
As in real estate the three most important aspects are location, location, and
location.
Medium
Television. TV is a highly
effective medium. Its
effectiveness is reflected in
its price. Don't use TV
unless you can afford it.
Cable advertising can be a
much lower cost alternative
and it's often easier to reach
a targeted audience.
Advantages
TV commercials reach the
largest audience of any
media.
Advertising on television can
create instant validity.
Your ad can reach the
audiences you have targeted
with less fragmentation.
Disadvantages Tips
One television ad during TV is a visual media, so is photography. It offers a great opportunity to use
prime time can exceed the your own creative skill in presenting your message.
cost of one radio spot during
drive time by 10 to 30 times.
Not only is actual
commercial time expensive
but production costs can be
even higher.
51
Publicity and Promotion

Publicity differs from advertising in two ways: Advertising is paid for and controlled by
you while publicity is provided and controlled by someone else. Although the process
is different, the goal is the same - recognition of your business by potential clients.
Publicity is of greater value than advertising because it is not paid for and controlled by
you. This adds to its credibility.

Community service and business organizations can expose you and your business to
people that may become clients or business associates. They also can be a pathway
to publicity opportunities.

Getting a positive image of your business in print and electronic media is the main goal
of public relations. Business profiles of local entrepreneurs, awards on their work, and
community service are common themes in business news and community news. Your
media sales rep can often be helpful in getting your story or upcoming announcement
to the right reporter or editor because the advertising and editorial staff is a lot closer
than the total autonomy image they try to portray.

Showing Your Work at shows, competitions, and galleries is good publicity you
shouldn't pass up. Don't just limit displaying your work to these rare occasions when
there are everyday opportunities on the walls of banks, inns, hospitals, professional
offices,sport shops, and the list goes on.

Mall bridal shows are often excellent publicity and marketing for the retail
photographer. Your booth can showcase your best work and provide personal contact
with potential clients. These events tie up you or one of your staff for a few days but
most studios feel it is worth to cost.

Volunteering your time and skills is often good publicity. If you cover events by local
organizations, there will be gratitude for your help, and local papers may run your
photographs and give you a credit line. However, don't do it so often that you become
the on-call free photographer for all the organizations in town.

Your Portfolio

Your portfolio is the bottom line presentation of your abilities. Most clients will want to
an example of your work as part of the decision process to hire you. Early in your
career you should begin compiling a portfolio. There a few considerations that should
be taken when you getting one ready to present to a potential client.

Quality not quantity -- Nothing but your best work should be shown. Even if you
have a personal favorite but it is technically flawed, leave it out.

52
 Target your market -- The images should be relevant to your clients interest.

Include published work -- The published page carries with it an aura of

credibility.

Put it into a format that customers use -- Prints and mountings should be of the
highest quality put into a portfolio box. Transparencies should be in sleeves that
can be examined on a light table unless the client requests Carousel trays.
Good-quality duplicates may be substituted for originals.

Agents: Stock, Reps, News Syndicates, and Galleries

Stock picture agents market photographer's existing file images. Stock agencies
usually represent hundreds to thousands of photographers. Their agent status only
applies to those photographs that the photographer has submitted to them.

Assignment representatives or "reps" usually have only a handful of photographers

they handle on an exclusive basis within their territory. They try to maintain a steady
flow of client assignments for their photographers. They are found in New York City,
Chicago, Los Angeles, and other major cities.

Galleries exhibit and sell fine prints. Except for planning exhibits, contact is often
limited to the mail.

Nearly all of these agents will be engaged with a written contract that give them some
form of exclusive rights over at least part of your work that is often a major limitation on
your business. Don't agree to any contract unless you fully understand every phrase.
The best investment you could make before launching any type of contract is to buy:

Business and Legal Forms for Photographers, by Tad Crawford, Published by Allworth
Press, 10 East 23rd Street, New York NY 10010, $21.95.

Stock Agencies

LOCATING A STOCK AGENT

Listings of the major stock agents are contained in the Photographer's Market by
Writers Digest Books. It's found in most libraries and bookstores.

The stock agencies have a high turnover of material in order to maintain fresh and up-
to-date images. Business reputation sales history are the key considerations when
choosing an agency.

53
If you are approaching an agency in person, treat them like a client and make an
appointment. If you must deal through the mail, call first to find out what type of images
they carry. Use registered mail, enclose a stamped return envelope.

FEES

The typical cut for a stock agency is 50%. Some agencies also charge a handling fee
of $2 per slide submitted.

CONTRACTS

Most agency contracts ask for exclusive rights, if you sell any image on your own, they
get 50 %. Any contract section that you disapprove of, draw a line through it and initial
it. If they want your photographs bad enough they will negotiate.

Assignment Representatives (Reps)

LOCATING A REP

Most reps focus on getting advertising accounts and other commercial accounts for
their photographer clients. Good reps are hard to find and almost none of them will
take on new photographers just starting out. To be considered, photographers must
have acquired at least a few advertising or corporate clients on their own. With even a
little real selling experience behind them, photographers understand and appreciate
the work of the rep much better and it will demonstrate that their talent is a marketable
product.

First thing you should do before getting a rep is to be sure you need one. If your
business is located in a major urban market and has grown to the point that marketing
time is limiting your assignment time and you hate marketing, the time is ripe for finding
a rep. Keep in mind, however, that a rep will consume a fourth of your fees. A
business must be very active and healthy to support a rep. If you're looking for a rep
before they come looking for you, its probably too soon.

The best place to start looking is the directories of professional reps and their
organizations. In addition, you can ask clients and potential clients for
recommendations. Once you pick your rep, use phone contact like you would a client
and send either a promotion sheet or a dozen slides with a letter requesting
representation. Always send copies not originals and include a SASE if you want them
back. If a rep seems interested, ask a few questions on the rep's policies before you
agree to anything.

Does the rep handle competitive photographers in the same market?

54
 How large is the client base?
What is the split on promotion and advertising costs?
How much experience does the rep have?

FEES

Typical commission percentage is 25 percent of the fee, some also include 30%
percent on out-of-town accounts. Photojournalism rates are higher. For editorial or low
fee accounts the rates are lower. No commissions are paid on expenses normally
charged to the client. The costs of advertising and promotion are usually split 75/25 on
the same basis as the fee/commission ratio. Many contracts stipulate fees that are
paid after termination of the relationship, much like alimony.

CONTRACTS

When you and a rep decide to join into an arrangement, you should enter into some
kind of written agreement that covers the following items:

@ Commissions.
@ Pre-existing accounts
@ Billing
@ Rep's exclusive market
@ Expenses
@ Termination
@ Advertising and promotion

Galleries

Of the 200 to 300 photographic galleries in the country, half are in New York City and
California.

LOCATING A GALLERY

Selling fine art photography is one of the hardest tasks there are in photographic
marketing. Only a few hundred photographers make a living at it, very few of these
make a good living at it . Gallery commission rates of 33-1/3 percent to 50 percent
reflect this difficult sales environment.

A list of galleries is easy to find, they are in the Yellow Pages, Photographer's Market,
published by Writer's Digest Books, and regional and city magazines. The problem is

55
to find the ones that carry photography, and are welcoming new talent. The varieties
go further because some are local, some are national, some are co-ops, some carry
other art media, some are limited to a specific type of image.

Once a prospective gallery is selected, it should be approached for an appointment.

Don't just drop in because you're in town that day. They will want to see actual prints
not slides.

CONTRACTS

When you and a gallery decide to join into an arrangement, you should have a written
agreement that covers the following items:

@ Gallery's territory and exclusivity.

@ Duration.
@ Type of work involved
@ Commissions
@ Exhibits
@ Pricing
@ Accounting and payments
@ Copyright
@ Consignments
@ Damage or loss
@ Change of ownership

Your Own Mini-Agency

A Do-it-yourself stock agency for marketing your pictures may be the best plan for you.
It would probably be more active in selling your photographs. If you don't have time to
run it alone, try a co-op arrangement with other stock photographers. A small agency
can survive if it is specialized or regional. A specialized agency can get by with only
5,000 to 10,000 pictures and less than a dozen photographers. these additional
photographers can be recruited from lists made up from membership directories of
photographic associations.

A newer method of self marketing is through the Internet. In fact, all the big agencies
are already there. The usual form of stock marketing on the "net" is a collection of
small images with the opportunity to download a full sized image with a credit card or
membership arrangement. Virtually every media editor in the US has this capability
now. You can make it easier to find your homepage if all the right words are put in the
description so the various search engines can find it with the usual key words. These
new agency homepages are plentiful enough that you can get an idea of what you need
to do by just looking at a few of them.

56
Wire Services and News Syndicates

Each wire service has its own photographers and stringers. Wire services and news
syndicates rarely use freelance pictures unless its hard news missed by the regular
press. The two news organizations which dominate the American market are the
Associated Press (AP) and United Press International (UPI). They do not act as agents
and they prefer to buy all newspaper rights. Whether your photograph appears in one
or every paper in the country, whatever offer you accepted is all that you will ever get.

Their headquarters are:

Associated Press (AP), 50 Rockefeller Plaza, New York, New York 10020, (212) 262-4000;
United Press International (UPI), 220 East 42 Street, New York, New York 10017, (212) 682-0400

AP and UPI have offices nation wide and sell to subscribers on an general fee basis
and sell to non-subscribers on an per use basis.

Newspaper syndicates operate much in the same way as the wire services that also
have syndication such as the Associated Press' Wide World syndicate. The largest
syndicates are:

New York Times News Service,

Chicago Tribune-New York News,
Newhouse News Services, and
Los Angeles Times-Washington Post.

Magazine news picture agencies (production agencies) are a separate world from
newspaper services. They are set up such that the photographer shares in the sales
more like a stock agency. For this reason they are very important to the photojournal-
ist. Indeed the original agencies--

Gamma-Liaison, 150 East 58 Street, New York, New York 10022, (212) 888-7272;
Black Star-Sipa, 450 Park Avenue South, New York, New York 10016, (212) 679-3288;
Magnum cooperative;
Sygma Photo News, 225 West 57 Street, New York, New York 10019, (212) 765-1820 and;
Contact-Press Images.

along with more recent groups, dominate major news magazine photographs beyond
what their staffs produce. These agencies have been the major spawning ground for
independent photojournalists for half a century.

57
Professional Organizations and Associations

Advertising Photographers of America (APA)

27 W. 20th St., New York, N Y 10016, (212) 807-0399

American Society of Magazine Photographers (ASMP)

419 Park Avenue S., New York, New York 10016, (212) 889-9144.
ASMP has chapters in major cities. Contact the New York office for details.

American Society of Picture Professionals (ASPP)

Box 2401, Nashville TN 37202.
(Photographers of stock photography.)

Associated Photographers International

23024 Ardwick Street, Woodland Hills, California 91364
Box 206 Woodland Hills, California 91365, (213) 888-9270.

California Press Photographers Association

Box 191, San Diego, California 92112, (714) 299-3131.

International Photographers (IATSE)

Unit still photographers on motion picture and television productions.
Local 659: 7715 Sunset Boulevard, Hollywood, California 90046, (213) 876-0160.
Local 666: 327 S. LaSalle Street, Chicago, Illinois 60604, (312) 341-0966.
Local 644: 250 West 57th Street, New York, New York 10019, (212) 247-3860.

National Press Photographers Association (NPPA)

#306, 3200 Croasdaile Dr., Durham, North Carolina 27705, (919) 489-3700 (800)-289-
6772.

Overseas Press Club of America

52 East 41 Street, New York, New York 10017 (212) 679-9650.

Professional Photographers of America (PPA)

1090 Executive Way, De Plaines, Illinois 60018, (312) 299-8161.

Society of Photographers and Artists Representatives (SPAR)

Box 845, FDR Station, New York, New York 10022, (212) 832-3123.

West Reps
Suite 102, 1258 North Highland Avenue, Los Angeles, California, (213) 469-2254.

58
Books and Periodicals for Marketing

Available in reference or business libraries or from the publisher.

AMERICAN SHOWCASE. trade directory produced by American Showcase, 915

Broadway, 14 Flr, New York, New York 10010-7108; telephone (212) 673-6600.
American Showcase is sold in some bookstores (usually in the art sections) and by the
publisher: Watson Guptill Publishing Inc., 1515 Broadway, New York, NY 10036;
telephone (212) 536-5121 or (800) 451-1741.

ART DIRECTOR'S INDEX TO PHOTOGRAPHERS. trade directory, John Butsch and

Associates, Chicago, Illinois. It is sold by the publisher: Watson Guptill Publishing Inc.,
1515 Broadway, New York, NY 10036; telephone (212) 536-5121 or (800) 451-1741.
($135)

CELEBRITY SERVICE INTERNATIONAL CONTACT BOOK. trade directory of the

entertainment industry $40 Celebrity Service, Inc. 1780 Broadway, Ste. 300, New York,
NY 10019 TEL: 212-757-7979 FAX: 212-397-4626 Status: out of print.

CONTRACT DESIGN--DIRECTORY OF SOURCES. the January special issue of

Contract--The business magazine of commercial and institutional interior design and
architecture, planning and construction. Available from Miller Freeman Inc. (New York)
(Subsidiary of: United News & Media) One Penn Plaza, New York, NY 10119 TEL:
212-714-1300 Fax: 212-714-1313

DECOR: the magazine of fine interior accessories ANNUAL. Commerce Publishing

Co. 330 N. Fourth St., St. Louis, MO 63102-2036 TEL: 314-421-5445 Formerly: Picture
and Gift Journal.

GEBBIE PRESS ALL-IN-ONE DIRECTORY. Published by Gebbie Press, Box 1000,

New Paltz, New York 12561, telephone (914)255-7560; available for $105 from the
publisher.

GIFT AND DECORATIVE ACCESSORIES BUYERS DIRECTORY. incl. in subscr. to

Gifts and Decorative Accessories Geyer-McAllister Publications, Inc. 51 Madison Ave.,
New York, NY 10010 TEL: 212-689-4411; available only from the publisher.

GUIDE TO LITERARY AGENTS & ART/PHOTO REPS. Writer's Digest Books, F&W
publications, 1507 Dana Ave, Cincinnati, Ohio 45207, $18.95 (published periodically).

INTERIOR DESIGN BUYERS GUIDE. $15 is published in September as an extra

issue of Interior Design magazine, Cahners Publishing Company (New York). Design
Division of Reed Elsevier Inc., 249 W. 17th St., New York, NY 10011 TEL:
212-645-0067 FAX: 212-242-6987 (Subscr. to: Box 7820, Torrance, CA 90504-9220)

59
LITERARY MARKET PLACE. published annually by R. R. Bowker, 121 Chanlon Rd,
New Providence NJ 07974, telephone (908) 464-6800 or (800) 521 8110; available for
$169.95 from the publisher.

MADISON AVENUE HANDBOOK. It is available for $45 from the publisher, B. Klein
Publications, P.O. Box 8503, Coral Springs, Florida 33065, telephone (305) 752-1708.

MAIL ORDER BUSINESS DIRECTORY Is available for $85 from the publisher, Todd
Publications, P.O. Box 301, West Nyac, NY 10994, TEL: 914-358-6213, 800-747-1056.

O'DWYER'S DIRECTORY OF CORPORATE COMMUNICATIONS. J.R. O'Dwyer Co.,

New York, New York 10016 telephone (212) 679-2471; available for $110 from the
publisher.

O'DWYER'S DIRECTORY OF PUBLIC RELATIONS FIRMS. published annually by J.

R. O'Dwyer Co., Inc., 271 Madison Avenue, New York, New York 10016, telephone
(212) 679-2471; available for $110 from the publisher.

PHOTOGRAPHER'S MARKET. Writer's Digest Books, F&W publications, 1507 Dana

Ave, Cincinnati, Ohio 45207 (published annually, $22.99).

STANDARD DIRECTORY OF ADVERTISERS. National Register Publishing Company,

Orchard Road, Skokie, Illinois 60077, telephone (312) 470-3100; available for $479
from the publisher.

STANDARD DIRECTORY OF ADVERTISING AGENCIES ("The Advertising Red

Book"). Published by the National Register Publishing Company, 5201 Old Orchard
Road, Skokie, Illinois 60077, telephone (312) 470-3100. available for $479 from the
publisher.

TRAVEL WEEKLY'S WORLD TRAVEL DIRECTORY: official guide to the worldwide

travel industry. $150 Reed Travel Group. Part of the Reed Elsevier group (Subsidiary
of: Reed Telepublishing) 500 Plaza Dr., Secaucus, NJ 07096 TEL: 201-902-8460
Directory Formerly: World Travel Directory. Status: out of print.

ULRICH'S INTERNATIONAL PERIODICALS DIRECTORY. published annually by R.

R. Bowker, 1180 Avenue of the America, New York, New York 10036, telephone (212)
764-5100; available in some reference and business libraries or from the publisher.

WORKING PRESS OF THE NATION, VOLUME V: INTERNAL PUBLICATIONS

DIRECTORY. published annually by the National Research Bureau, 424 North Third
Street, Burlington, Iowa 52601, telephone (800) 553-2345; available for $399 from the
publisher.

60
 DEALING WITH EMPLOYEES

The motives behind starting a photographic business are a little different than other
types of businesses. Almost no one opens a shoe store because they love to fit shoes.
They do it to make more money and have control of a business that will eventually
reach a point that they only have to manage employees that do all the functional day to
day work. Photographers, on the other hand, love the craft of photography, want to
make more money and consider managing employees and marketing as bothersome
necessities. Many photographers start out alone or rely on the wife and kids for help.
Initially, half the time and labor spent is business related and not photography.

If your business is run well, growth will rapidly increase its size in a few years. Initial
growth rates of 33% per year are not unusual. This growth can continue until you stop
it. You stop it when you feel it is large enough to give you what you wanted and still
small enough so it won't lead you to burnout.

Overlaid on this growth pattern are the seasonal business cycles. The variation for
retail photographers between the Christmas season and mid summer can be as much
as 4 to 1. Most weddings fall between Easter and July. Commercial photographers
see the same type of cyclic variation only at other times of the year.

At some point you are going to want some additional help. Help comes in two flavors,
permanent and temporary.

Permanent Employees

Before you embark on creating a staff, look at the risks:

You will have to make the payroll no matter what the condition of your cash flow.
Can you go without pay for extended periods?

Will the new employee pay for itself in a very short time? Will you lose money
without assistance or are you just tired of working alone?

Will you need more space, equipment or insurance for the new worker?

If only as a last resort, you finally decide to hire someone, at least you have the benefit
of being a small business. With less than four employees, only a few labor laws and
regulations apply to you. More laws kick in at fifteen employees and all of them apply
above fifty. However, you're free to hire and fire without worrying about discrimination,
smoking, family or medical leave, harassment and a host of other requirements if you
have less than four employees.

61
Unfortunately, what seems like a lot of state and federal regulations still do apply.
You're responsible for payment of the employers half of Social Security, unemployment
insurance, and workers' compensation. You're also responsible for deducting federal,
state, and local income taxes as well as Social Security taxes from an employee's pay.
These deducted payments must be submitted with all the proper documentation. You
get all the forms you need when you file for an employer's identification number using
IRS form SS-2.

In addition to taxes and fees, there is usually holidays, sick days, vacation, along with
life and health insurance offered as benefits. The cost can reach an amount that is
equivalent to 40 percent of the employee's pay.

Although many employers provide benefits to full time workers, they are seldom
extended to part time workers. Hence the popularity of part time employment.

The final hassle an employer must put with is managing people such that they behave
the way you want them to behave. Similarly you don't want them to be angry at you
over misunderstandings. The best way to avoid common problems is to set down
personnel policies in writing and give each employee a copy. All you need is one or
two typed pages not a thick employee handbook. Consider policies for the following
areas:

Hours.
Compensation.
Employee benefits.
Retirement.
Leave.
Training.
Probation.
Grievances.
Promotion.
Smoking.
Substance abuse.
Safety and security responsibilities.
Attire.
Personal use of company equipment or facilities.
Confidential information.
Personnel evaluation.
Termination.

Temporary Personnel Services

Photography was made for temporary help. Nearly every piece of equipment,

62
transport, location, and finishing service you need can be leased or contracted. Models
are a phone call away for just as long as you need them. If you need help of a more
common type there are temporary personnel services or temp services as everyone
calls them. Employment agencies are for permanent employees and should not be
confused with temporary personnel services.

Temporary help should be just that, temporary. They are more expensive than
permanent employees so temps should be maintained as a luxury for peak periods and
vacation fill-ins. There is an exception however, it is a good way to find a good
permanent employee. If you want to steal an employee of a temporary personnel
service, that is usually OK because the temporary personnel service will simply charge
you a fee the same as an employment agency would. The benefits of finding
employees this way is that you get to try out someone without risk before you invest the
resources to make them a permanent employee. Along the same lines, a student co-op
program is an even cheaper way to test drive a potential employee.

Independent Contractors

Another alterative to direct hiring is to use independent contractors. These can range
from cleaning services to a makeup artist. It may be a self-employed individual that
works under written contract. All taxes, forms, and benefits are handled by the
contractor. You only have to file an IRS Form 1099 for any payments exceeding $600
to an independent contractor over a tax year.

A little warning is needed here. Although hiring an independent contractor can save
you most of the headaches of being an employer, the US government is very
demanding when it comes to showing that a person is an independent contractor and
not your employee. The 20 criteria the IRS consider when defining
contractor/employee status is found in their publication 937 on independent
contractors.

A simple test to determine contractor status is:

Do you control the person's activities or decisions.

Are you their only customer?

Are they responsible for their own profit and loss.

Are they used for special skills or projects versus just working a shift?

Usually there is no trouble or challenge to using a contractor unless they fail to pay
their taxes or worker compensation insurance and a legal claim is placed on you.

63
Employee Leasing

Employee leasing is similar to temporary personnel services, but it utilizes permanent

company employees that have been transferred to the payroll of an employee leasing
firm. The employee leasing firm then leases them back to the original employer. The
leasing company becomes the legal employer and is responsible for payroll, leave,
benefits, and participates in hiring, firing and evaluations.

Employers cannot escape legal responsibilities or liabilities with employee leasing.

Most employee leasing contracts have joint employment responsibilities. The leasing
company pays and reports wages and employment taxes out of its own accounts and
has a right but not the right of direction and control of the leased employees.

Advantages of Employee Leasing

The burden of personnel management and accounting is lifted.

Employee benefits see an improved economy of scale with a larger firm.

The leasing can assist in the development of personnel policies.

Disadvantages of Employee Leasing

You give up some of your controls over your employment policies.

You retain responsibility for productivity and conduct of your staff.

Employee termination will be complicated by the documentation requirements of

the leasing company.

64
 COPYRIGHT BASICS

A copyright is just what it sounds like, the legal right to copy original work. This right
belongs to the photographer that created the original image, unless the image was
made "for hire," or the copyright was transferred by a written and signed contract.
Conceiving of the idea for the image doesn't count, only the photographer gets to
copyright it. A copyright exists from the instant the image is created in fixed form
whether it is registered or not or whether it is published or not.

Copyright protection is provided by title 17, U.S. Code. The rights are not unlimited.
The major limitations are the doctrines of "fair use" and "compulsory license." "Fair
use" applies to photographs that are used for educational or public interest purposes
such as news reporting, and schools. "Compulsory license" allows limited uses of
copyrighted materials under conditions and royalties set by law.

Copyright protection is available for all unpublished works, regardless of the nationality
or domicile of the photographer. Published works are eligible for copyright protection in
the United States if the photographer is a citizen or resident of the US, or a nation that
has a copyright treaty with the US, or is a stateless person.

No action is required to secure copyright for images made after 1977. Before that
time, copyright was created by publication with a copyright notice. Works first
published before March 1, 1989, must bear a copyright notice for full protection, after
that date, use of the copyright notice is recommended but optional.

The copyright notice has three elements:

1. The symbol © (the letter c in a circle), or the word "Copyright" or the

abbreviation "Corp."; and

2. The year of first publication of the work. The year date may be omitted where
a pictorial work is reproduced on greeting cards, postcards, stationery, jewelry,
dolls, toys, or any useful article; and

3. The name of the owner of the copyright, or a generally known alternative

designation of the owner.

Example: © 1996 Jane Doe

Although it is no longer a legal requirement, all photographs should be marked with a

copyright notice. An unmarked photograph is an invitation for infringement based on a
claim of "innocent infringement".

A copyright is usually granted for the author's life, plus an additional 50 years.

65
Copyright is a personal property right, and it is subject to the various state laws that
govern the ownership, inheritance, or transfer of personal property as well as terms of
contracts or conduct of business. For information on your state laws, see an attorney.

Licensing the Use of Your Photographs

A copyright may be transferred, but the transfer of exclusive rights is not valid unless
that transfer is in writing and signed by the owner or the owner's agent. Most
photographers are reluctant to offer unqualified exclusive rights to their work. Instead
they limit the exclusive rights to a defined time span, geographic region, or media. That
way they don't permanently lose the copyright. In granting exclusive rights avoid poorly
defined terms like "all rights" or "buyout," because they can lead to misunderstandings
and legal confusion. Don't use "exclusive" unless you intend to transfer part or all of
the copyright ownership.

Non-exclusive licenses do not have to be made in writing. However, a written copyright

license is always a good business practice, even if it is just a letter of understanding.

Work for Hire

If you are an employee taking photographs for an employer, work for hire automatically
applies without further agreement.

A non-employee such as a freelancer can only do a work for hire under two special
conditions. The photographs must be specifically commissioned and the photograph is
either a contribution to a collective work such as a magazine or is a contribution to a
motion picture or audio-visual work. There are seven other categories but they mostly
concern text. If work for hire does apply, it will apply to every photograph taken while
on the assignment, even the ones taken for your own use.

Registration

You may ask, if registration is no longer required for protection, why go through
registration at all? The answer has to do with legal remedies for infringement. If you
register within 3 months after publication of the work or prior to an infringement of the
work, you can sue for statutory damages, which can be as much as $100,000.
Otherwise only actual damages may be claimed which are often hard to prove.
Copyright registration also allows registration with the U.S. Customs Service to prevent
the importation of infringing copies.

To register a work of the visual arts, send an application form VA, a nonrefundable
filing fee of $20, and a nonreturnable deposit of the work being registered together in
the same package to the Register of Copyrights, Copyright Office, Library of Congress,
Washington, D.C. 20559. It is simple enough that an attorney is not required. The

66
effective date is when the Copyright Office receives the application in acceptable form

As with any law, the Copyright Act can change without warning. If legal action is being
considered, consult an attorney. The material contained here should not be used as
your only source of information.

Additional Information

Information from the Copyright office Internet Homepage, including announcements,

circulars, regulations, and Copyright Office records from 1978 onward, is available via:

World Wide Web URL: http://lcweb.loc.gov/copyright

Gopher: marvel.loc.gov

Mail requests for publications or information on copyright problems should be

addressed to:

Copyright Office, LM 455, Library of Congress, Washington, D.C. 20559-6000.

Telephone connection to a Copyright Information Specialist, is available by calling

(202) 707-3000 during federal business hours. Application forms and circulars are
requested by calling (202) 707-9100 and recording your order.

67
FORMS
WEDDING DATE:
NAME
WEDDING CANDIDS
On the list below, check off which special moments you would like to see in your wedding albums:
BEFORE THE CEREMONY:
_ Bride in dress
_ Bride with mother
_ Bride with father
_ Bride with both parents
_ Bride with honor attendant
_ Bride with maids
_ Bride touching up make-up, hair
Other moments______________________________________________________________
AT THE CEREMONY:
_ Guests outside church
_ Bride, father getting out of car
_ Bride, father going into church
_ Ushers escorting guests
_ Groom's parents being seated
_ Bride's mother being seated
_ Soloist and organist
_ Groom and groomsmen at alter
_ Giving-away ceremony
_ Alter or canopy during ceremony
_ Bride and Groom exchanging vows
_ Ring ceremony
_ Bridesmaids coming down aisle
POSED SHOTS BEFORE THE RECEPTION:
_ Bridesmaids looking at bride's ring
_ Bride's and groom's hands
_ Bride and groom together
_ Bride with parents
_ Groom with parents
_ Bride and groom with honor attendants
_ Bride and groom with children
AT THE RECEPTION:
_ Bride and groom arriving
_ Bride and groom getting out of car
_ Bride and groom going into reception
_ The receiving line
_ Buffet table
_ Bride, groom at bride's table
_ Parent's table
_ Bride, groom dancing
_ Bride, her father dancing
_ Groom, his mother dancing
_ The musicians
_ Bride, groom talking to guests
_ Passing the guest book
_ The cake table
_ Bride at gift table
_ Everyone getting flowers
_ Bride leaving house
_ Bride, father getting in car
_ Groom alone
_ Groom with best man
_ Groomsmen getting boutonnieres
_ Maid or matron of honor
_ Flower girl and ring bearer
_ Bride and father
_ Groom meeting bride
_ The kiss
_ Bride and groom coming up aisle
_ Bride and groom on church steps
_ Bride alone in the chapel
_ Bride and groom among guests
_ Bride and groom getting in car
_ Bride and groom in back seat of car
_ Other ceremony moments
_______________________________
_ Bride with her attendants
_ Groom with his attendants
_ Bride, groom, all the wedding party
_ Bride, groom, all the parents
_ Other people with bride, groom
________________________________
_ Bride, groom cutting the cake
_ Bride, groom feeding each other cake
_ Bride, groom toasting
_ Throwing and catching bouquet
_ Groom taking off bride's garter
_ Throwing, catching garter
_ Wedding party decorating car
_ Bride and groom ready to leave
_ Guests throwing rice
_ Bride and groom getting in car
_ Rear of car speeding off
_ Table shots
_ Outside grounds (wedding party)
_ Other reception fun
 AGREEMENT FOR WEDDING PHOTOGRAPHY
Wedding Date___________________

Bride's Name
___________________________________________________________Phone____________________

Address

Groom's Name ______________________________________________Phone ____________________

Address

Address After Wedding

Location bride will prepare

Time to start Photography

Time for arrival of flowers

Ceremony time and location

Name of presiding clergyman ________________________________________Phone ______________

Reception time and location

Best man_____________________________________ Maid/Matron of honor

1. This constitutes an order for wedding photographs and albums and prints. It is understood that any and
all proofs, sample prints and negatives remain the property of the photographer and they may be used for
advertising or display.

2. Although great care will be taken with the photographs taken at the wedding, the photographer limits any
liability for inability to deliver pictures for any reason to return of all deposits made.

3. The photographer is authorized to exclude other photographer,s amateur or professional, at the wedding
and that interference while the photographer is working, will constitute a reason for non-completion of the
job with no liability to the photographer and loss of initial deposit by signing party. No photographs can be
taken while photographer is posing couple and groupings.

4. All deposits are non-refundable if date is changed or wedding cancelled for any reason.

5. With packages, a deposit of 1/3rd is due at signing of this contract, with 1/3rd to be paid two weeks prior
to wedding and the remainder to be paid upon completion of photography.

All terms of this agreement are understood and agreed upon.

Signature of Photographer

Signature of Contracting Party

Address

date ____________________________
 ASSIGNMENT ORDER

to ____________________________________
ordered by
____________________________________
firm
____________________________________
address
____________________________________
____________________________________
____________________________________
date
____________________________________
client
____________________________________
your purchase order & job number
____________________________________
our job number
____________________________________
required date

DESCRIPTION OF ASSIGNMENT:

FEES:
fee for reproduction and use of____ photographs @ $ ________________
number of days _____@ $___________ per day
fee and terms if experimental______________________________
use and rights granted:
______________________________________ national ___________ consumer __________
______________________________________ regional ___________ collateral __________
______________________________________ local ___________ trade __________
all rights ___________ TOTAL FEE __________
ESTIMATED EXPENSES:
pre-production:
pre-production fee _______________________ polaroid _______________________
styling _______________________ food _______________________
set construction _______________________ lodging _______________________
___________________________________________ location scouting _______________________
______________________________________________
______________________________________________

production:
film & processing:
polaroid ______________________ crew _______________________
black & white ______________________ travel time crew _______________________
color ______________________ model fees _______________________
rush processing ______________________ travel time models _______________________
prints ______________________ props _______________________
styling ______________________ parking _______________________
location fee ______________________ mileage _______________________
rental of props ______________________ telephone _______________________
" wardrobe ______________________ delivery _______________________
" lighting ______________________ food for crew _______________________
" grip ______________________ lodging _______________________
" eqipt. ______________________ travel _______________________
insurance ______________________ Contingency 10% _______________________
Total _______________________

___________________________________ __________________________________________
SIGNATURE OF PHOTOGRAPHER SIGNATURE OF BUYER
Terms of this Order

! Photographic Fee is based on ______ days of shooting. If for any reason the shooting is cancelled by the client,
then _____ % of the Photographic Fee will be billed.

! Postponement due to weather is billed at 50% fee for photographer and models; crew and per diem are full rate.

! Use of Photography: (Unless otherwise specified, photographer herein grants one-time non-exclusive rights to
the use of photographic images.

! Payment Schedule:

___% of the Total Estimate upon signing of this agreement.

___% of the Total Estimate upon delivery of the photographs.

___% Balance _____ days after receipt of the final invoice. 0.833% Finance Charge per month after
30 days.

! In the event of a dispute arising out of this agreement, Client agrees to submit said dispute to the American
Arbitration Association in ___________, and to abide by its decision. In the event of a legal suit being filed, the
prevailing party shall be entitled to recover attorney's fees.

! The costs estimated on page one of this agreement represent only an estimate which has been prepared as
accurately as possible. It is understood that they will be billed on what actually is incurred.

! All direct expenses in connection with this assignment are additional to photographic fee and will be billed, unless
otherwise noted.

! Retake fee to be based upon agreement between agency and photographer.

 STOCK PHOTOGRAPHY DELIVERY MEMO

TO: DATE:

SHIPMENT NO:

PROJECT:

PHONE NO: OUR JOB NO:

ORDERED BY: YOUR PO NO:

CLIENT: YOUR JOB NO:

PHOTOGRAPHS TO BE RETURNED BY:

VALUE (IF OTHER

ORIG. (O) PHOTOGRAPH THAN $1,500/ITEM)

QTY. DUPL. (D) FORMAT SUBJECT/ID NO IN EVENT OF LOSS/DAMAGE

____________ TOTAL COLOR

____________ TOTAL B&W

CHECK COUNT AND ACKNOWLEDGE BY SIGNING AND RETURNING ONE COPY. COUNT SHALL BE CONSIDERED
ACCURATE AND QUALITY DEEMED SATISFACTORY FOR REPRODUCTION IF SAID COPY IS NOT IMMEDIATELY
RECEIVED BY RETURN MAIL WITH ALL EXCEPTIONS DULY NOTED. PHOTOGRAPHS MUST BE RETURNED BY
REGISTERED MAIL, AIR COURIER OR OTHER BONDED MESSENGER WHICH PROVIDES PROOF OF RETURN.

SUBJECT TO ALL CONDITIONS ABOVE AND ON REVERSE SIDE

Acknowledged and Accepted:

Please sign here Date
 TERMS & CONDITIONS

[1] "Photograph(s)" means all photographic material furnished by Photographer hereunder, whether transparencies, negatives, prints or otherwise.

[2] After 14 days the following holding fees are charged until return: Five Dollars ($5.00) per week per color transparency and One Dollar ($1.00) per week per
print.

[3] Submission is for examination only. Photographs may not be reproduced, copied, projected, or used in any way without (a) express written permission on
Photographer's invoice stating the rights granted and the terms thereof and (b) payment of said invoice. The reasonable and stipulated fee for any other use
shall be three times Photographer's normal fee for such usage.

[4] Client assumes insurer's liability (a) to indemnify Photographer for loss, damage, or misuse of any photographs and (b) to return all photographs prepaid,
fully insured, safe and undamaged, by bonded messenger, air freight, or registered mail. Client assumes full liability for its principals, employees, agents,
affiliates, successors and assigns (including without limitation messengers and freelance researchers) for any loss damage or misuse of the photographs.

[5] Reimbursement by Client for loss or damage of each original transparency shall be in the amount of One Thousand Five Hundred Dollars ($1,500) or such
other amount set forth next to said item on the front hereof. Reimbursement by Client for loss or damage of each other item shall be in the amount set forth
next to sold item on the front hereof. Photographer and Client agree that said amount represents the fair and reasonable value of each item, and that
Photographer would not sell all rights to such item for less than said amount.

[6] Photographer copyright notice" © [YEAR OF FIRST PUBLICATION][PHOTOGRAPHER'S NAME]" must accompany each use as an adjacent credit line.
Invoice amount will be tripled if said credit s not provided.

[7] Client may not assign or transfer this agreement, or any rights granted hereunder. This agreement binds and inures to the benefit of Photographer, Client
Client's principals, employees, agents and affiliates and their respective heirs, legal representatives, successors and assigns. Client and its principals,
employees, agents and affiliates ore jointly and severally liable for the performance of all payments and other obligations hereunder. No amendment or waiver
of any terms is binding unless set forth in writing and signed by the parties. This agreement incorporates by reference Article 2 of the Uniform Commercial
Code and the Copyright Act of 1976 as amended.

[8] Except as provided in (9) below any dispute regarding this agreement shall be arbitrated in [PHOTOGRAPHER'S CITY AND STAT]E under rules of the
American Arbitration Association and the laws of [STATE OF ARBITRATION]. Any dispute involving $________[LIMIT OF LOCAL SMALL CLAIMS COURT]
or less may be submitted without arbitration to any court having jurisdiction thereof. Client shall pay all arbitration and court costs, reasonable legal fees, and
expenses, and legal interest on any award or judgment in favor of Photographer.

[9] Client hereby expressly consents to the jurisdiction of the Federal courts with respect to claims by photographer under the Copyright Act of 1976 as
amended.

[10] Client will not make or permit any alterations, additions, or subtractions in respect of the photographs, including without limitation any digitalization or
synthesization of the photographs alone or with any other material by use of computer or other electronic means or any other method or means now or
hereafter known.

[11] Client will indemnify and defend Photographer against all claims, liability, damages, costs, and expenses, including reasonable legal fees and expenses
arising out of any use of any photographs for which no release was furnished by Photographer or any photographs which are altered by Client. Unless so
furnished no release exists.
 PROPERTY RELEASE

For good and valuable consideration herein acknowledged as received, the undersigned, being the
legal owner of, or having the right to permit the taking and use of photographs of, certain property
designated as____________________, does grant to_________________("Photographer"), his/her
heirs, legal representatives, agents, and assigns the full rights to use such photographs and
copyright same, in advertising, trade, or for any purpose

The undersigned also consents to the use of any printed matter in conjunction therewith.

The undersigned hereby waives any right that he/she/it may have to inspect or approve the finished
product or products, or the advertising copy or printed matter that may be used in connection
therewith, or the use to which it may be applied.

The undersigned hereby releases, discharges, and agrees to save harmless Photographer, his/her
heirs, legal representatives, and assigns, and all persons acting under his/her permission or
authority, or those for whom he/she is acting, from any liability by virtue of any blurring, distortion,
alteration, optical illusion, or use in composite form, whether intentional or otherwise, that may occur
or be produced in the taking of said picture or in any subsequent processing thereof, as well os any
publication thereof, even though it may subject me to ridicule, scandal, reproach, scorn, and
indignity.

The undersigned hereby warrants that he/she is of full age and has every right to contract in his/her
own name in the above regard. The undersigned states further that he/she has read the above
authorization, release, and agreement, prior to its execution and that he/she is fully familiar with the
contents thereof. If the undersigned is signing as an agent or employee of a firm or corporation, the
undersigned warrants that he/she is fully authorized to do so This release shall be binding upon the
undersigned and his/her/its heirs, legal representatives, successors, and assigns.

___________________________________ _________________________________________
DATE NAME

___________________________________ _________________________________________
WITNESS

_________________________________________

_________________________________________
ADDRESS
 RELEASE
For valuable consideration received, I hereby grant to ("Photographer"),
____________ and his/her legal representatives and assigns, the
irrevocable and unrestricted right to use and publish photographs of me,
or in which I may be included, for editorial, trade, advertising and any other
purpose and in any manner and medium; to alter the same without
restriction; and to copyright the same. I hereby release Photographer and
his/her legal representatives and assigns from all claims and liability
relating to said photographs.

Name (Print) __________________________ Date ______________

Signature _____________________________ Phone _____________
Address
_____________________________________________________
City _______________________ State _______ Zip ___________
If Minor, Signature of Parent/Guardian ______________________
Witness
_____________________________________________________
 MINOR RELEASE

In consideration of the engagement as a model of the minor named below, and for
other good and valuable consideration herein acknowledged as received, upon the
terms hereinafter stated, I hereby grant to ("Photographer"),
_________________________ his/her legal representatives and assigns, those for
whom Photographer is acting, and those acting with his/her authority and permission,
the absolute right and permission to copyright and use, re-use, publish, and re-publish
photographic portraits or pictures of the minor or in which the minor may be included, in
whole or in part, or composite or distorted in character or form, without restriction as to
changes or alterations from time to time, in conjunction with the minor's own or a
fictitious name, or reproductions thereof in color or otherwise, made through any
medium at his/her studios or elsewhere, and in any and all media now or hereafter
known, for art, advertising, trade, or any other purpose whatsoever. I also consent to
the use of any printed matter in conjunction therewith.

I hereby waive any right that I or the minor may have to inspect or approve the finished
product or products or the advertising copy or printed matter that may be used in
connection therewith or the use to which it may be applied.

I hereby release discharge and agree to save harmless Photographer, his/her legal
representatives or assigns, and all persons acting under his/her permission or authority
or those for whom he/she is acting, from any liability by virtue of any blurring, distortion,
alteration, optical illusion, or use in composite form, whether intentional or otherwise,
that may occur or be produced in the taking of said picture or in any subsequent
processing thereof, as well as any publication thereof, including without limitation any
claims for libel or invasion of privacy.

I hereby warrant that I am of full age and have every right to contract for the minor in
the above regard. I state further that I have read the above authorization, release, and
agreement, prior to its execution, and that I am fully familiar with the contents thereof.
This release shall be binding upon me and my heirs, legal representatives, and
assigns.

__________________________ __________________________________
(MINOR'S NAME) (FATHER MOTHER) (GUARDIAN)

__________________________ _________________________________________

__________________________ _________________________________________
MINOR'S ADDRESS ADDRESS

__________________________ ___________________________________
DATE WITNESS
 SIMPLIFIED ADULT RELEASE

For valuable consideration received I hereby grant to ("Photographer"),

_________________ the absolute and irrevocable rights and unrestricted permission in
respect of photographic portraits or pictures that he/she had taken of me or in which I
may be included with others, to copyright the same in his/her own name or otherwise,
to use, re-use, publish, and re-publish the some in whole or in part, individually or in
conjunction with other photographs, and in conjunction with any printed matter, in any
and all media now or hereafter known, and for any purpose whatsoever for illustration,
promotion, art, editorial, advertising, and trade, or any other purpose whatsoever
without restriction as to alteration; and to use my name in connection therewith if
he/she so chooses.

I hereby release and discharge Photographer from any and all claims and demands
arising out of or in connection with the use of the photographs, including without
limitation any and all claims for libel or invasion of privacy.

This authorization and release shall also inure to the benefit of the heirs, legal
representatives, licensees, and assigns of Photographer, as well as the person(s) for
whom he/she took the photographs.

I am of full age and have the right to contract in my own name. I have read the fore-
going and fully understand the contents thereof. This release shall be binding upon me
and my heirs, legal representatives, and assigns.

___________________ _________________________________________
DATE NAME

___________________ _________________________________________
WITNESS

_________________________________________

_________________________________________
ADDRESS
 ADULT RELEASE

In consideration of my engagement as a model and for other good and valuable

consideration herein acknowledged as received, I hereby grant to
("Photographer"),_________________, his/her heirs, legal representatives, and
assigns, those for whom Photographer is acting, and those acting with his/her authority
and permission, the irrevocable and unrestricted right and permission to copyright, in
his/her own name or otherwise, and use, re-use, publish, and re-publish photographic
portraits or pictures of me or in which I may be included, in whole or in part, or
composite or distorted in character or form, without restriction as to changes or
alterations, in conjunction with my own or a fictitious name, or reproductions thereof in
color or otherwise, made through any medium at his/her studios or elsewhere, and in
any and all media now ar hereafter known for illustration, promotion, art, editorial,
advertising, trade, or any other purpose whatsoever. I also consent to the use of any
printed matter in conjunction therewith.

I hereby waive any right that I may hove to inspect or approve the finished product or
products and the advertising copy or other matter that may be used in connection
therewith or the use to which it may be applied.

I hereby release, discharge and agree to save harmless Photographer, his/her heirs,
legal representatives and assigns, and all persons acting under his/her permission or
authority or those for whom he/she is acting, from any liability by virtue of any blurring,
distortion, alteration, optical illusion, or use in composite form, whether intentional or
otherwise, that may occur or be produced in the taking of said picture or in any
subsequent processing thereof, as well as any publication thereof, including without
limitation any claims for libel or invasion of privacy.

I hereby warrant that I am of full age and have the right to contract in my own name. I
have read the above authorization release and agreement prior to its execution and I
am fully familiar with the contents thereof. This release shall be binding upon me and
my heirs, legal representatives, and assigns.

____________________ _________________________________________
DATE NAME

____________________ _________________________________________
WITNESS

_________________________________________

_________________________________________
ADDRESS
 Name Part of Order Date Finish Rush 9 Rush charge
___ ___ Date

Address Previews ORDER Salesman Outside Date & Invoice #

Lab

Home Phone Business Phone Notify Mail Surprise Will Call COD

Billing Address Photographer Retoucher Printer Finisher Thank you

Card Mailed

QUANTITY SIZE DESCRIPTION PRICE Copy Frame ID

COLOR Commercial Reorder Passport

Portrait Photo Fin. School

B&W Restoration Misc

AMOUNT OF ORDER

SALES TAX Important to customer. Check above order carefully. An order cannot be changed once it is placed.
Customer agrees to pick up order and pay balance upon completion. Reasonable collection costs will
be added to delinquent balances.
TOTAL AMOUNT DUE

50% DEPOSIT I hereby accept the terms of this order:

BALANCE DUE

BALANCE PAID Signed Date Received by

INDEX
accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
actor and model portfolios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
advertising photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 42
agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
art portfolio photography, copying and reproductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
assignment photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43, 66
business loss vs hobby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
business plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
business structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
cash vs accrual accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
catalog photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
choices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
commercial photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
copyright . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
corporate photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 43
corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
dealing with employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
debt financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
economic development commission (edc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
editorial photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 43
employee leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
entertainment and gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
entrepreneurial skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
exclusive limited use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
exclusive unlimited use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
fashion photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
federal taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
filing dates for tax returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
finance companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
financing start-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
friends and relatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
galleries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
geographic and time limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
hobby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
incorporating a business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
licensing the use of your photographs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
local taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
market areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
nature and wildlife photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
news photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
news syndicates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60, 64
nonexclusive limited use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
nonexclusive unlimited use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
office in the home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
permanent employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
personal funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
portrait photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
pros and cons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
publicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
real estate photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
record keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
register your business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
retail photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 40
running your own business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
school photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
self employment tax (seca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
small business administration (sba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
small business investment companies (sbic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
sole proprietorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
specializations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
specialized subjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
start up expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
state financing programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
state taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
stock photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 43
stock, reps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
temporary personnel services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
travel photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
uniform capitalization rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
useful publications from the irs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
vehicle expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
wedding photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
wire services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
work for hire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74