SmugMug Pro: What am I getting myself into?

[Packhorse-4]

I have been thinking about different ways to earn a little money to support my photography hobby, but I not ready to take the leap into starting a business. I’m really just looking for a way to make some extra cash and earn some money to go into my “Next Lens” piggy-bank.

I often take pictures of my kids during their after school activities: Soccer, Swimming, Gymnastics, Choir, School Plays, etc. In addition to my kids, I also take several pictures of the other players on the field. Throughout the last year I have been taking, printing and sharing these photos with other kids on the team. By the end of the season I try to make sure everyone on the team has a couple of action shots from the various games.

A few of the parents have asked how much I was charging for the photos, but I always gave them away for free. I use a Canon Selphy and it will print great quality 4x6 prints for about 29 cents each. However, the more I give away, the more the costs add up. The more pictures I gave away, the more people would ask me to take extra shots of their kids. Having a few parents say things like, "How much?" and "Take more of #7" gave me the impression that I might be able to sell the prints for a nominal fee.

Now that I have been introduced to the greatness of SmugMug, I am learning how others are selling similar pictures through SmugMug Professional level accounts. While I think this is a great idea, I really don’t know what I would be getting myself into.

1.Can I simply sign up for a professional level account and start charging for the photos? Can it really be that easy?

2.If I actually make some money, are there Income Tax implications? Is this like a virtual garage sale or e-bay where I can sell a few of my possessions for a couple hundred bucks and not really have to worry about reporting the sales? I’m sure SmugMug reports all of the checks it sends to users to the IRS, I think it would have to.

3.If there are Income Tax implications, can I write off the cost of the pro level account? Can I write off the cost of new camera equipment?

4.Will I need insurance?

5.Am I completely over thinking this entire process and spinning myself hopelessly out of control over nothing?

[Andy]

Can I simply sign up for a professional level account and start charging for the photos? Can it really be that easy?
Yes. It really can. My FAST START:
http://www.smugmug.com/help/pro-start.mg

If I actually make some money, are there Income Tax implications? Is this like a virtual garage sale or e-bay where I can sell a few of my possessions for a couple hundred bucks and not really have to worry about reporting the sales? I’m sure SmugMug reports all of the checks it sends to users to the IRS, I think it would have to. We report 1099 income on over $600. Here are all the details: http://www.smugmug.com/help/reporting
If there are Income Tax implications, can I write off the cost of the pro level account? Can I write off the cost of new camera equipment?
We at SmugMug don't give tax advice - you'll want to hear from other pros, or speak with an accountant..
Will I need insurance?
A good idea.

[Packhorse-4]

Thanks Andy, I looked over the links you provided and they gave me a good feel for the answers I was looking for.

It's kind of funny, I filed my taxes today using TurboTax and the program asked me if I had a 1099 from freelance work. In years past I would have passed it over without a second thought, but it struck me as funny because I had asked about it earlier today. It also mentioned, as you did, that it was a required form if I had income over $600.

I’ll skip the tax write off questions for now.

As for the insurance, I guess this topic opens a whole new can of worms. If anyone wants to chime in on this, I would be interested to know what others are doing.

[Rhuarc]

I'm glad you started this topic as well, minus ths stuff about the kids... I'm just looking to sells ome picture here or there to help support my hobby. Looking forward to what others have to say...

[Pupator]

If anyone wants to chime in on this, I would be interested to know what others are doing.

It's all about how much you think you'll make. If you're going to make only enough to pay for your smugmug account and maybe a bit extra, I wouldn't worry about insurance or the tax implications.

If you think you'll be making $600 plus - you can start writing off mileage and home office stuff. If you want to do this "for real" - you'll have to go get a certificate of assumed name from your county's registrar of deeds. Then you can open a business checking account (to keep expenses and income seperate)....personally, I don't think you should need to do any of that for the amount of volume you'll likely be dealing with.

Just my $.02

[Packhorse-4]

Thanks Pupator, I appreciate your comments. You’re right; I’m not really looking to make this my primary source of income. My goal is to offset the cost of my very addictive and very expensive hobby. I have no intention of pulling in thousands of dollars every year, but if I could make a few hundred dollars to purchase photography equipment and supplement the cost of a new lens, that would be great!