Part 107 Business Development questions

[AlphaMike2]

I am looking to start a UAS business and focus on real estate photography as well as videography. I am looking to build a portfolio so far, so I have a few ideas on doing that as well, and plan to sell photos and videos online as a passive income. Those of you that are doing this as a business, do you run it under an LLC? I am looking to do that to protect my personal assets separate from the business. Was there a lot of fees associated with that?

 

[Mavy3-CJW]

I run a small marketing communications business as an LLC that, as of recently, offers aerial photography, videography, and photogrammetry via UAS. Getting an LLC is pretty easy. The specifics vary from state to state, but the basics are as follows: 1) Visit your state's Secretary of State's office website to search for a trade or trademark name for your desired company name to ensure it's available. 2) If you want to secure an LLC, you can have a lawyer draft articles of incorporation (an expensive route) or use an online service like LegalZoom. You'll need to pick a registered agent. This is a legal entity that will receive official mail on your behalf in the event you are served. It's just a legal formality, but it's needed to complete your LLC. The registered agent part is the most costly, but all told, you're out about $200 to $250 for name registration, LLC paperwork, publication of named LLC (not required in all states), and registered agent paperwork.

I would do a ChatGPT query for your state to determine the exact process and requirements. Yes, it does afford you some financial protections, but not to the same extent as a full-blown C- or S-Corp. If you're a sole proprietor, which I'm guessing you are, like me, you're the responsible party, not the company, in the event something goes south.

Look into liability insurance and property insurance for your drone(s). Also, it's important to obtain an EIN if you haven't already. This is free from the IRS. And of course, get your Part 107 Certification, which I'm guessing you already have, per the title of this thread.

Best of luck with your new venture!

 

[GadgetGuy]

I am looking to start a UAS business and focus on real estate photography as well as videography. I am looking to build a portfolio so far, so I have a few ideas on doing that as well, and plan to sell photos and videos online as a passive income. Those of you that are doing this as a business, do you run it under an LLC? I am looking to do that to protect my personal assets separate from the business. Was there a lot of fees associated with that?

Hate to rain on your parade, but you are a bit late to the party. Before you waste money forming an LLC, make sure there really is a profitable business opportunity for a UAS business focusing on real estate and videography in your local area. Highly unlikely. It has been a race to the bottom. There is no money to be made anymore. Real estate agents are notoriously cheap and minimize all their out of pocket expenses on listings. Most of them are now taking their own drone photos and videos. Most are also using their own cell phones for still photos. There are exceptions at the very high end of the market, but unless you already have connections and a viable source of referrals, you will be doomed to failure. No amount of marketing and sales online can overcome the perceived free value of your offerings. You can thank DJI for literally making the drones fly themselves to create cinematic shots for complete newbies, and lowering the bar to entry to a Mini 4 Pro, purchased at CostCo while buying groceries.

What makes you think your UAS real estate photography business will be any different than everyone else with a drone, who had the same idea over the last 10 years, who quickly realized it wasn't a profitable business opportunity?

 

[mneeze]

Hate to rain on your parade, but you are a bit late to the party. Before you waste money forming an LLC, make sure there really is a profitable business opportunity for a UAS business focusing on real estate and videography in your local area. Highly unlikely. It has been a race to the bottom. There is no money to be made anymore. Real estate agents are notoriously cheap and minimize all their out of pocket expenses on listings. Most of them are now taking their own drone photos and videos. Most are also using their own cell phones for still photos. There are exceptions at the very high end of the market, but unless you already have connections and a viable source of referrals, you will be doomed to failure. No amount of marketing and sales online can overcome the perceived free value of your offerings. You can thank DJI for literally making the drones fly themselves to create cinematic shots for complete newbies, and lowering the bar to entry to a Mini 4 Pro, purchased at CostCo while buying groceries.

What makes you think your UAS real estate photography business will be any different than everyone else with a drone, who had the same idea over the last 10 years, who quickly realized it wasn't a profitable business opportunity?

1. AlphaMike2 wasn't asking for concept viability or general business advice. He asked a very specific question about forming an LLC and the associated costs.

2.Isn't the real estate agent 'market' extremely saturated? What about the landscaping/lawn maintenance profession - even more saturated? There's restaurants on every corner in America, but somehow new ones are constantly popping up.

Generally every profession that's established is saturated. Yet people in these fields are still successful and new businesses start every day that succeed.

Just like in ANY business, the level of motivation, dedication, and adaptation/innovation will determine one's success. It might not be as easy as 'selling water in the desert,' but nothing about starting and running a successful business is easy. Few things in life are both easy and truly worthwhile.

Sorry, but 'give up without even trying' is terrible advice for just about anything.