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.

 

[GadgetGuy]

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.

If more people researched the profitability of the market before jumping in with both feet, the 90% failure rate of small businesses could be drastically reduced. He intends this to be passive income. He hasn't even progressed beyond the portfolio building phase. He doesn’t even have a single client. He has no prior experience. Asking about business formation costs is putting the cart before the horse. I know of dozens of drone flyers who spent over $1,000+ each creating LLC's for their prospective drone businesses before ever finding anyone who would pay them for drone images. Year 2: it wasn't even worth paying the $1,000 LLC annual renew fee because they made no money in year 1.

"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."

 

[AlphaMike2]

If more people researched the profitability of the market before jumping in with both feet, the 90% failure rate of small businesses could be drastically reduced. He intends this to be passive income. He hasn't even progressed beyond the portfolio building phase. He doesn’t even have a single client. He has no prior experience. Asking about business formation costs is putting the cart before the horse. I know of dozens of drone flyers who spent over $1,000+ each creating LLC's for their prospective drone businesses before ever finding anyone who would pay them for drone images. Year 2: it wasn't even worth paying the $1,000 LLC annual renew fee because they made no money in year 1.

"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."

Gadget guy, this country is great because of guys like you and I. It’s great that everybody has their opinion on a subject, but I think the way you were going about your business on this fourm is pretty sad. Aren’t we supposed to help each other instead of knocking each other down? What’s the point? I could care less if you responded to this at all. I’m not looking to start a fight. I’m gonna do what I’m gonna do.

 

[mneeze]

If more people researched the profitability of the market before jumping in with both feet, the 90% failure rate of small businesses could be drastically reduced. He intends this to be passive income. He hasn't even progressed beyond the portfolio building phase. He doesn’t even have a single client. He has no prior experience. Asking about business formation costs is putting the cart before the horse. I know of dozens of drone flyers who spent over $1,000+ each creating LLC's for their prospective drone businesses before ever finding anyone who would pay them for drone images. Year 2: it wasn't even worth paying the $1,000 LLC annual renew fee because they made no money in year 1.

"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."

Brother, while i do not necessarily disagree with your posts, i think you may have missed point #1 on my initial comment as well as the purpose of this thread.

"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."

"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?"

 

[GadgetGuy]

Brother, while i do not necessarily disagree with your posts, i think you may have missed point #1 on my initial comment as well as the purpose of this thread.

"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."

"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?"

Understood.

However, the proper choice of a business entity for each person is a legal question, not a preference or a question for laymen or others whose circumstances are undoubtedly different. If that is his sole question, and he is not interested in valuable feedback from those who have gone before him by posting here, he should instead be asking a business attorney, not looking for free legal advice on a hobbyist drone forum.

More to the point, he addressed his question to, "Those of you that are doing this as a business (a UAS business focusing on real estate photography as well as videography…selling photos and videos online as a passive income)." I seriously doubt that anyone on this forum is currently doing this as a business, without some other active income specialization, such as photogrammetry or thermography, or inspections. That's where the money still is.

That no one here currently has such a UAS business such as he is considering starting, regardless of the choice of business entity, speaks volumes, and makes my point. If it were profitable, it would still be pursued.

If he is only looking for a tax write-off of his drone equipment, and does not care about profitability, pursuing a losing business venture may still make financial sense. However, he states he wants passive income, so profitability is his main goal. Creating an LLC adds unnecessary expense to what is at best a marginally profitable venture. Make money first, then figure out how to protect it. Insurance is far more important than the business entity, if liability is his biggest concern.

That's my opinion, and the basis for it.

 

[GadgetGuy]

Gadget guy, this country is great because of guys like you and I. It’s great that everybody has their opinion on a subject, but I think the way you were going about your business on this fourm is pretty sad. Aren’t we supposed to help each other instead of knocking each other down? What’s the point? I could care less if you responded to this at all. I’m not looking to start a fight. I’m gonna do what I’m gonna do.

Part of helping people is pointing out their blind spots. That's not knocking them down, unless you only came here for confirmation of your beliefs, and aren't interested in any objective feedback. It's your money and your time.

You never answered the question:

"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?"

It appears that you actually joined the Forum in 2019 and created a new member post then about your Mavic 2 Dual Enterprise. Then 6 years later, just two weeks ago, you posted a new member post again about the same drone.

You buried the lead here in this thread when you neglected to include:

"New member post, I have my part 107 and fly as an employee at our local airport for wildlife deterrence and security purposes. Flying the Mavic 2 Dual Enterprise. Looking to learn from members here, and start up my own business later."

So, you already have the connections, the resources, and experience from the last 6 years while owning and operating an Enterprise drone for your employer, none of which you mentioned here. You meet all the exceptions I cited in my previous posts above.

Good luck on your new venture, if you still decide to pursue it.

 

[sawman]

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?

Depends on what state you register in. Here in Louisiana it cost me a paltry $75 to register my LLC and $35/yr annual report. But, it's not a drone business.

 

[AlphaMike2]

Depends on what state you register in. Here in Louisiana it cost me a paltry $75 to register my LLC and $35/yr annual report. But, it's not a drone business.

I noticed it’s $125 here in VT, trying to find the annual fees now.

 

[GadgetGuy]

Gadget guy, this country is great because of guys like you and I. It’s great that everybody has their opinion on a subject, but I think the way you were going about your business on this fourm is pretty sad. Aren’t we supposed to help each other instead of knocking each other down? What’s the point? I could care less if you responded to this at all. I’m not looking to start a fight. I’m gonna do what I’m gonna do.

Here you go:

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