How to Start Your Photography Business in 2025: Essential Financial Steps

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So you've decided 2025 is your year to turn your photography passion into a real business. Maybe you've been shooting sessions for friends and family, and they're telling you it's time to go pro. Maybe you're tired of squeezing photo sessions into your weekends and dream of making this your full-time gig. Or maybe you've just invested in that dream camera and want to make it pay for itself.

Whatever your reason, if you're serious about making money from your photography in 2025, we need to talk about something that might not be as exciting as choosing your presets or planning styled shoots, but will absolutely make or break your success: setting up your business finances the RIGHT way from day one.

I've seen too many talented photographers struggle because they didn't set up their finances properly at the start. Let's make sure that's not you. 💸

The Essential Steps to Setting Up Your Photography Business Finances

1. Choose Your Business Structure

This is a biggie! Your business structure affects everything from taxes to legal liability. As a photographer, you'll likely choose between:

• Sole Proprietorship: The simplest structure, perfect when you're just starting to book clients. You don't need to file with the Secretary of State unless you're using a business name different from your personal name.

• LLC (Limited Liability Company): Offers personal asset protection (super important when you're working with clients and expensive equipment!) You'll need to file formation documents with your state's Secretary of State.

While I can't advise you on this (That's for a lawyer to do!) I will say many photographers choose an LLC for the protection it offers, especially once they're regularly shooting weddings or events. That being said, depending on your state it may require extra filing and payments to maintain an LLC.

2. Get Your EIN

Think of your EIN (Employer Identification Number) as your business's social security number. Even if you're a sole proprietor and technically could use your SSN, here's why you want an EIN:

• Protect your identity when working with vendors and wedding venues

• Look more professional when submitting W9s to wedding planners

• Prepare for growth (like hiring second shooters)

• Required for most business bank accounts

Getting one is FREE through the IRS website and takes about 15 minutes. Do this before you move on to step 3!

3. Open Your Business Bank Account (and potentially credit card)

This is non-negotiable, friends! You need a separate place to deposit those session fees and track your equipment purchases. Here's what you'll need:

• Your EIN

• Business formation documents (if you're an LLC)

• Personal identification

• Initial deposit (varies by bank)

Pro tip: Shop around! Some banks offer:

• High-interest business checking (like Bluevine)

• Cash back on debit purchases (hello, new lens fund!)

• No minimum balance requirements (perfect for seasonal income)

• Free incoming wire transfers (great for those destination wedding deposits)

4. Set Up Your Accounting System

Here's where a lot of photographers get stuck. You have options depending on where you are in your business journey:

Just Starting Out? Check out my ProfitWay Dashboard - it's a DIY solution that helps you track your income and expenses visually, perfect for creative entrepreneurs who'd rather be behind the camera than buried in spreadsheets.

Ready for More? As your photography business grows, you might want to explore options like QuickBooks, Xero, or Wave.

5. Create Your Payment Systems

As a photographer, you need:

• A way to send invoices for session deposits

• A way to collect final payments

• A system for tracking payment plans (especially for weddings!)

I love Dubsado or Stripe for this because they can:

• Create professional invoices

• Set up automatic payment reminders

• Process credit cards

• Handle payment schedules

• Connect to your accounting system

6. Plan for Taxes

This is where many photographers get caught off guard - especially with seasonal income! You need a system to:

• Track your income (including those cash tips from wedding parties!)

• Set aside money for taxes during your busy season

• Make quarterly estimated tax payments

• Keep records of all expenses (gear, presets, education, etc.)

• Track mileage to sessions and shoots

Want to Start Your Photography Business Off RIGHT?

I've created something special just for you! The Financial Foundations Starter Kit includes everything you need to set up your photography business finances like a pro:

• ProfitWay Dashboard for easy financial tracking

• Financial Focus Templates to keep you organized (perfect for seasonal income!)

• Service-Based Business Guide (customizable for photographers)

• Estimated Tax Calculator (essential for variable photography income)

Think of it as your business financial setup in a box - everything you need to start your photography business right and build real wealth from day one!

Next Steps

Ready to set up your photography business the right way? Here's what to do:

1. Get your hands on the Financial Foundations Starter Kit

2. Follow the step-by-step guide to set up your business structure

3. Use the included templates to organize your finances from day one

4. Start tracking your income and expenses like a pro with the ProfitWay Dashboard

Remember: You can make ANY decision as long as it's an informed decision. (That's one of our core values at CBFS, and it's especially true when you're starting a photography business!)

Need More Help?

If you want personalized guidance on setting up your photography business finances, apply to work with me here. Let's make sure your business starts off on the right financial foot!

Disclaimer: While this guide provides valuable insights, it's important to note that every photography business has unique circumstances. For personalized advice tailored to your specific situation, please consult with a qualified tax professional. Our goal at CBFS is to empower you to make informed decisions that support your business growth and personal wealth-building objectives.

Disclaimer: Some of the links in this post may contain affiliate links that will provide compensation.

Disclaimer: AI may have been used to help create, enhance, or review this content. All relevant financial information has been reviewed by a licensed financial professional.

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Get A Financial Headstart

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Disclaimer: While this guide provides valuable insights, it's important to note that every business has unique circumstances. For personalized advice tailored to your specific situation, please consult with a qualified tax professional. Our goal at CBFS is to empower you to make informed decisions that support your business growth and personal wealth-building objectives.

Disclaimer: Some of the links in this post may contain affiliate links that will provide compensation. 

Disclaimer: AI may have been used to help create, enhance, or review this content. All relevant financial information has been reviewed by a licensed financial professional.

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