Hello, I want to be able to help people look for event ideas and even help
them close deals. I will be working as a third party helping the customer
look for halls and arrange the negotiation between the hall and them. I will
be working alone, would I need to get a business license plus insurance for
myself? It's more like a hobby but I will be getting some type of profit. I
need help in this department please. Thank you.
What you describe is what an event planner does - they help clients find the
resources needed for an event, everything from the venue to the catering,
music, audio visual, etc. If you want to be taken seriously as a business,
then you need to comply with the laws in your area. That includes registering
a business name and securing a business license if you need one.
If you plan to work only with individuals on family events, you may get by
without insurance. If you plan to work for businesses, you will likely need
to provide a "certificate of liability" from your insurance agency to at
least some of them. Th industry standard is $1 million in liability
insurance. Should anything happen and someone sues, they will sue everyone
associated with the event, including you. You might check with the company
that writes your homeowner's insurance to see if they will cover you. Some
won't when your primary activity does not occur at your home.
As another poster mentioned, be sure you complete a business plan. In the
process of doing the research for the plan you will find numerous issues you
may need to address.
The IRS will decide if you are running a business or playing around with a
hobby. If you are being paid for services and generating a profit it very
likely is a business. If you are donating your time and expertise for fun or
out of the generosity of your heart...but doesn't sound like it.
As for a business license it depends on your area. Your state or city might
or might not require it. Whether you will need insurance will depend on the
level of liability you will be exposed to. You can contact an insurance
broker for specifics.
What you will definitely need is a business plan. See below.
kburger | Community Moderator |
6/28/2012 - 10:00 am
Visit the Establishing a Business section and click on Obtaining Business Licenses to find out when you need to get a business license and what factors go into that process. As for the insurance, there are many types of insurance, visit the Running a Business section of SBA.gov and click on Insurance and more specifically Types of Insurance to find out what insurance might be right for you. Hope this helps!
BizResearcher | Window Shopper | 7/3/2012 - 2:24 pm
resources needed for an event, everything from the venue to the catering,
music, audio visual, etc. If you want to be taken seriously as a business,
then you need to comply with the laws in your area. That includes registering
a business name and securing a business license if you need one.
If you plan to work only with individuals on family events, you may get by
without insurance. If you plan to work for businesses, you will likely need
to provide a "certificate of liability" from your insurance agency to at
least some of them. Th industry standard is $1 million in liability
insurance. Should anything happen and someone sues, they will sue everyone
associated with the event, including you. You might check with the company
that writes your homeowner's insurance to see if they will cover you. Some
won't when your primary activity does not occur at your home.
As another poster mentioned, be sure you complete a business plan. In the
process of doing the research for the plan you will find numerous issues you
may need to address.
bizplanhelper | Window Shopper | 7/2/2012 - 8:05 pm
hobby. If you are being paid for services and generating a profit it very
likely is a business. If you are donating your time and expertise for fun or
out of the generosity of your heart...but doesn't sound like it.
As for a business license it depends on your area. Your state or city might
or might not require it. Whether you will need insurance will depend on the
level of liability you will be exposed to. You can contact an insurance
broker for specifics.
What you will definitely need is a business plan. See below.
kburger | Community Moderator | 6/28/2012 - 10:00 am
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