Why you need business insurance and a business license | Natural Light Studio, Dublin, Ca
WHY YOU NEED BUSINESS INSURANCE + A BUSINESS LICENSE
I know, I know… this is the part of the business that has the potential to suck your soul dry and leave you a shell of a person. No? Just me?
The interesting thing about taking these important steps in your business is that it can actually breathe some life into your business. You know why? Because once you do serious things for your business, you start acting serious about your business. True story. I know that “the dream” is so shiny, fun, and inspiring but we can’t get “the dream” without putting some elbow grease, time, and effort into it first. Starting with dull + sometimes brain-melting work. (especially brain-melting work. haha!)
You also might be asking yourself, “why is this person so passionate about these subjects? Well, I own the CSS and I require insurance to rent the space. I also care about you. Yeah, you! I care about helping you navigate this thing called entrepreneurship and it can get dicey reeeeal quick without some guidance.
Why do I need business insurance?
If you are a photographer charging clients anywhere, you need insurance.
“ Photography business insurance can help protect you against financial damages from lawsuits involving injury, destruction of property, or professional negligence.”
When I first started taking people’s pictures at 19, I had NO idea the legal let alone business side of my “business”. I just accepted money from people I knew in exchange for pictures. What I didn’t realize is if something happened during that shoot, I was basically screwed. Not only that, but if something were to happen to my gear (which, if you’re reading this, you probably rely heavily on your equipment ;) I had no way of paying to fix or replace my gear AT ALL. That’s pretty freaking scary! It’s been a long time since then and I realize that many of you are just starting or have been flying under the radar this whole time. IT IS TIME FOR YOU TO GET LEGIT! Let’s do this together, shall we?
What does Insurance do for me?
Insurance is more than just coverage, it’s peace of mind. When you are running a business, you are dealing with people and circumstances that are unpredictable. This is when insurance is a really good thing to have. Insurance can provide coverage if you break equipment, if your equipment gets stolen or if someone sues you. Believe me, it is way cheaper to pay for insurance than to get stuck without it. It suuuuuucks.
Insurance is also a sign that you are making small steps to taking yourself seriously. It’s a sign that you are choosing to have a different mindset about your business. When you start treating your business like a business, that’s when you start to fly. That is when people take you seriously, who want to invest in you and what you are offering. Serious businesses think about consequences, unpredictable situations, being responsible for not just their business but how their choices will affect their livelihood and loved ones. If you were to break your camera body tomorrow, and you didn’t have insurance, how would you pay for a new camera body? Would you have to put it on a credit card? Ask a family member to front the money for you? Your camera is your moneymaker, isn’t it? The way I think about it is, I want to be responsible for my own actions but I also want to be part of the solution and not the problem. I don’t want to take on an extra burden of my own by having to pay off a credit card or add that burden on someone I love just because I didn’t take my business seriously. Owning a business is a risk. Period. Own it! It feels uncomfortable, but it’s worth it!
No, most people won’t care if you have insurance, but they will see the growing confidence in you by the actions and decisions you make because you started taking your business seriously. That is what insurance does for you.
How much does yearly insurance on average cost?
Progressive’s website states:
“The cost of business insurance in California depends on a business’s industry, coverage needs, size and location. For example, a business in San Francisco can expect to have a different rate than one in Los Angeles, or a business that has employees might pay more than a business that doesn’t.”
A local State Farm Insurance agent told me that “State Farm can insure a photographer who has their business in their home for $325/year or $27/mo.” (Insert stunned face) That is NOTHING!! Like, nothing in comparison to getting caught without it.
who do I get insurance from?
For our business, we have The Hartford Business Insurance. They are a sister company to Hill + Usher (which we used before we opened the space. It’s specific to photographers and they are awesome!
We also recommend Thimble. Thimble is the go to site we send our clients who don’t have or want long term policies. You can purchase hourly or “short term policies” from $10-$20 depending on how long your booking is. This is a great option if you aren’t a photographer or business owner. You can watch our tutorial video here.
Other yearly insurance options:
Do I need a business license to get insurance?
Yes. If you own a business, you should be registered in your city.
Why do I need a Business License?
An article on legal Zoom stated:
Licenses are required for three main purposes:
To identify your business and make sure you are accountable for your actions
To protect the public health and safety
To keep track of your finances for tax purposes"
Business licenses are mainly used to collect revenue from people who are doing business in a city. You make money, they make money. It’s kind of annoying, but the fees are pretty fair and only come around once a year. If you spread the cost out throughout the year, it costs you dollars/month. No biggie, plus you are legit. No ifs, ands, or buts about it.
How do I get a Business License?
Click on the city links below, or simply google “City of (your city). Search in the search bar for a Business license or Business Tax Application. Some cities use the phrase “Business Tax Application” it’s the same as a business license. It’s just another name for it.
Each city is different but has the same basic requirements and process for getting a license or tax certificate. In my experience, if you have any questions, call them and they are always happy to answer your questions. :)
City business License Direct Links:
These links are direct links so you don’t have to navigate through awful web design and legal talk. ;)
Livermore, Pleasanton, Dublin, Danville, Walnut Creek, Fremont, Oakland, Berkley, Richmond
Brentwood, Antioch, Concord, Martinez
San Mateo, Mountain View, Palo Alto, San Jose
What about DBA’s?
BDA stands for “Doing Business As”. You’ll need to register for a DBA if your official business name doesn’t include your legal name. For example, we had to register as a DBA because Creative Space Studios doesn’t have my legal name in it. If I were running “Janea Greene Creative” I wouldn’t have to register as a DBA because it has my name in it. You’ll most likely have to fill out a few forms + run a cheap ad in the local newspaper for (I think) 4 consecutive weeks (at least that’s Dublin). It ensures no other business has that name. Here’s a helpful link about DBAs in California.
Well, there you have it! I hope this was helpful and I truly hope that you can start taking some time to consider how making smart and responsible choices for your business will help your business. You’ll be so thankful in the long run!
If you have any comments or questions, please let me know in the comments or you can email me at css@creativespacestudios.co