Perhaps this is dreaming big. I haven't even signed up on any microstock sites yet, nor uploaded any photos. Maybe I'm overthinking this, but let's just say this microstock thing really works well for me. Will I regret not having started at least a sole proprietorship in order to be able to write equipment off my taxes? Do most people operate microstock as a hobby or do they run their earnings through a business account?

I've operated my business as a sole proprietership for years...and it works great for me. I do deduct travel, equipment, etc. when it is used for business. I shoot a lot, so most trips have some element I can deduct...but I don't push it and try to be as accurate as possible.

My best advice...talk to an accountant and tell her what you plan to do. It will be money well spent.

Just remember, your returns on MicroStock will be proportional to the work you put in. Homework/Shooting work/Upload work. I'm slowly building my portfolio...working back through old images (most won't work...but many do) and creating new ones - much more targeted to the needs of the microstock market. Even so I'm bringing in very little money so far. That's OK because I see a pattern that I like. It requires dilligently adding more images and managing those images. I think it's a numbers game. As long as your images are pretty good to brilliant, the trick is having lots of them.

Good luck!

Starting a business (Depending on your country and state)is super easy. Itook me 45 minutes and $30 at the City Hall to get a my first business license. It cost $30 to get.

The other thing you may want to consider is insurance. Mine cost about $20/month but covers my equipment for theft and injuries that falling lights may cause. (Never happened yet, but its a good thing to have).