*Disclaimer* I am not an attorney, accountant or tax expert, please consult a professional when making this decision.
Now that you actually have some ways to pay for your photo booth you can dream up a business name. In my opinion, it’s important to choose a business name that includes the words “Photo Booth(s)” or “Photo Booth Rentals.” You want to make it very easy for clients who are looking to rent a photo booth to find you. By including “photo booth” in the name of your business, you also make yourself more search engine friendly. You don’t want your business name to be so ominous that no one knows what you do, your business name should be specific, obvious and convey exactly what it is you have to offer. Don’t get too emotionally attached to any one name, have a few different options or variations of the business names ready, in case the name of your dreams is already taken. You also want to see if you can work this business name into a domain name for your website. To quickly look up any available domain names go to Blue Host.
Why establish a business entity? Establishing a business entity means that you can then open up a business bank account. Customers want to write checks to a business name, not “Joe Smith”, it makes the business legitimate and professional. Furthermore, the separation of personal and business bank accounts makes end of year taxes so much easier.
As far as the type of business entity, I decided to keep things simple and quick. I needed to get my photo booth out and earning money, and the quickest way was to go to my county office building and file a Fictitious Name (DBA – Doing Business As). For $35 I walked out with my business certificate in hand. Next I went online to the IRS website and obtained an EIN (employer identification number).
With your business certificate and EIN in hand, you can now go to your local bank and open up a business account.
The DBA designation does not offer any personal liability protection, which means if my photo booth business was sued, my personal assets could be up for grabs as well. Establishing a Limited Liability Company (LLC) or Corporation firmly separates your business and personal assets. However, these entities take additional time, and depending on where you live could be costly to establish. My suggestion is to start off simple, file a DBA and you can always upgrade to an LLC or Corporation later, once you have made some money.
Don’t let this decision paralyze you, as your entity is not written in stone and can always be changed down the road.
If some this stuff is confusing, I highly recommend going to Legal Zoom they make the process of registering a new business very simple.
After you get squared away with making things official let’s talk about getting your contract in place or better yet where to get insurance.
