How to Make Your Wedding Business Legit

The moment you decide (or decided) to start a wedding business is an exciting one. There is a brand to be designed, services to be mapped out, and a website to be built. But, there is so much more to starting a business than that—and much more important things, too. Because, when everything is said and done, you want to make sure that the business you’ve built isn’t just making you money, but that it’s legal. (Did your heart skip a beat and not in a good way?) The good news is that you can take steps to button things up, regardless of how many years you’ve been a wedding pro—it’s just essential that you do them. And today, we wanted to make sure you are pouring into a business that has a strong foundation. Read on for the five things you need to have in order to make your business legit.

1. A registered entity and EIN

When starting a business, the first step in your business planning is to become a registered entity. A business entity is simply an organization that is formed to do business, and there are three types:

• Sole proprietorships
• Partnerships
• Corporations

Most wedding businesses are formed as sole proprietorships or partnerships (specifically LLCs), but as businesses grow, S-Corps become another type of entity you see. Each has its own set of pros and cons, and the best way to determine which is right for you is to discuss it with a Certified Public Accountant (CPA) and a lawyer.

Once you have decided on your entity, you should also file for an EIN or an Employer Identification Number. This is essentially a social security number for your business and is used for tax purposes (it is also known as a Tax Identification Number). Not all businesses need an EIN, though—sole proprietorships can use their Social Security number.

2. Business licenses and permits

To legally operate, you must apply for and obtain specific business licenses and permits. What you need varies by city and state, though there are federal licenses as well. And, the reason business licenses are essential is that they help to ensure your business is safe for the public (which, in turn, protects you). You can start researching which licenses and permits you need by contacting your Mayor’s office, visiting your county administrator’s website, as well as that of your state’s Secretary of State. Curious about the common business licenses and permits? Here are some you can look into:

• General business license
• “Doing business as” or DBA
• Sales tax permit
• Zoning permits
• Health permits

3. Business insurance

We all know things don’t always go as planned. And, whether that is property getting damaged or someone getting hurt on the job, having business insurance can literally save your business. Most states require businesses to have at least general liability insurance. Still, your business may need additional policies depending on the services you provide and whether or not you have employees.

Pro-tip: A good place to start your research for the policies you need is by contacting the company that provides your homeowners or renters insurance, because you might be able to negotiate a discount for adding policies to your account. 

4. A contract for clients

Every one of these items is important to making your business legit, but what’s crucial is ensuring it’s both legit and protected. A solid contract is an absolute must. We asked lawyer for wedding and creative business owners, Annette Stepanian, for her thoughts on why:

In my opinion, running a business without a written contract is a big no-no. Written contracts serve multiple purposes: they clarify expectations between you and the other party, they serve as a vehicle for educating your client about what it is you do and what the client’s role will be in the relationship, and they could protect you in the event there’s ever a misunderstanding or disagreement between the two of you. An often overlooked, but equally important reason for having written contracts is that they communicate to your clients that you’re a professional. And when you’re operating in a highly-saturated market, having a well-written contract can help you stand apart from the competition.  

5. A business bank account

Which brings us to the last item on our list (though certainly not the least important)—a business bank account. When working through your business planning checklist, taking the time to open a separate account for your business finances is a small yet impactful step. Trust us, both you and your account will be thankful you came during tax season.

Now that you know the five things you need to have to start a business that is legit, find out the 8 skills every business owner needs.

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