Let's face it, terms like LLCs, EINs, business bank accounts, and payment processors sound like a foreign language, especially to us creatives.

Today, we're untangling the jargon and simplifying the whole process down to a simple three-step framework.

Remember that while sharing my experience, I'm not a lawyer, accountant, or tax expert. This is not legal or financial advice but rather practical guidance from my journey in the creative business.

The Business Side of Creativity

You've perfected the art of capturing beautiful moments. Perfecting the art of setting up and running your business is equally important.

Most big Youtubers and online resources tend to skim over this topic, leaving many talented photographers in the dark.

That's why I'm here to guide you.

Let's demystify the process and explore the three nonnegotiable steps you need to take to set up your photography business the right way.

Step One: Forming Your Single Member LLC

When you start earning money with your photography, it might be tempting to deposit your income into your personal account.

This is where many fall into the trap of operating as a sole proprietor. This risks their personal assets if their business faces any legal issues.

The solution? Form a Single Member LLC (Limited Liability Company).

This allows your business and personal assets to exist as two separate entities. If your business were to get sued, they could only go after your business assets and not your personal ones. As long as you don't mix your personal and business finances, you should be in the clear.

The process of forming an LLC varies from state to state. You can either follow your state's instructions and form it yourself or use a service like betterlegal.com (get $100 off by clicking that link) or hire a lawyer. If you're unfamiliar with terms like articles of organization, operating agreements, and registered agents, I'd suggest going for the latter.

When you form an LLC, you'll also receive an Employer Identification Number (EIN), which acts like a social security number for your business. If you use a service like betterlegal.com or a lawyer, they'll also prepare your articles of organization and other documents that are required. This allows your business finances to be separate from your personal ones.

Step Two: Setting Up Business Bank Accounts

With your LLC formed and EIN in hand, it's time to set up your business bank accounts. This is where all your business transactions – income and expenses – will occur.

Keeping your business transactions separate not only maintains the distinction between you and your LLC but also simplifies accounting and bookkeeping.

Head to your preferred bank with your EIN and other LLC documents to set up your business bank account. And while you're there, consider getting a business credit card too, which can give you 0% interest for 12 months, essentially giving you an interest free loan to invest in your business.

Step Three: Setting Up a Payment Processor

Now, it's time to equip your business with the tools to receive payments from clients. Enter payment processors. They handle transactions, allowing your clients to pay you via credit card, PayPal, their bank account, and more.

Stripe, PayPal, and QuickBooks are all popular options, and I personally recommend Stripe for its simplicity. Once you've set up your account with your EIN and business bank details, you're good to go.

That's my simple three-step framework to get your photography business off the ground: form an LLC, set up business bank accounts, and establish a payment processor. With these essentials, you can focus on what you do best.