Do you have an idea for establishing an entertainment company? Here are a few steps to follow before you get started

A company that specializes in providing performers, whether musicians, clowns, magicians, or comedians, for birthday parties or company retreats is an entertainment company. It is possible to employ a wide range of people with different skills to meet various needs, even though most companies specialize in one type of performer. Starting a business involves more than just registering it with the state.

To start your entertainment business, we have compiled this simple guide. Following these steps ensures that your business is properly planned, registered, and legally compliant. But starting, running, and growing a business is more than an idea. Here's a comprehensive guide to starting an entertainment company so you can start your dream business the right way. To help you get started, we've outlined the steps you need to take.

Make your business plan

In most cases, entertainers don't need much capital to get started. The main cost will cover their typical living expenses while building a steady clientele. It is usually administrative costs that performers will incur. The costs of maintaining/replacing their equipment will also need to be considered. Expenses such as travel, equipment maintenance, and employee wages must be included in entertainment companies' costs.

Most private clients who hire entertainers will be financially able to absorb the expense of ongoing education based on their specialty. Depending on their specialty, they may also want to invest in continuing education. Nevertheless, entertainers are easily available to schools, businesses, and even government entities with lower budgets. They usually charge an hourly or show fee.

The rates entertainers charge is determined by their time and any expenses related to their business, including supplies, employee salaries, etc. In addition to their popularity, performers can charge based on their business expenses. Established companies can charge hundreds of dollars an hour or more per performance.

Legalize your business

Businesses commonly consist of sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. If your entertainment business is sued, you can avoid being held personally liable by establishing a legal business entity such as an LLC or corporation. For a small additional fee, you can hire a company that provides LLC services for you or form an LLC yourself for minimal state LLC costs.

Pay your taxes by registering

Obtaining an EIN is a free and easy way to register for taxes. You will need to apply for one before you can open your business. To file for taxes, you must register for various state and federal taxes. Depending on your business structure, you might be able to choose from a variety of taxation options. For example, certain LLCs would benefit from being taxed as S corporations.

Credit cards and bank accounts for your business

Personal asset protection requires using separate business banking accounts and credit accounts. When your business and personal accounts are mixed, your assets could be at risk if your business were sued. The process of piercing your corporate veil is known in business law as piercing the corporate veil. In addition, building business credit can help you get better interest rates, higher credit lines, and other loans in your business's name.

Licenses and permits must be obtained

You may be fined hefty fines if you do not acquire the necessary permits and licenses or even have your business shut down. You may need state permits and licenses if you operate an entertainment business. SBA's reference to state licenses and permits provides information about licensing requirements in your state. The entertainment business usually operates from an office.

Insurance for your business

In the same way that licenses and permits are required, you need insurance to operate your business legally and safely. Business Insurance protects your company's financial well-being if you experience a covered loss. For different types of businesses with different risks, different types of insurance policies are available.

If you are unsure what risks your business may face, you can start with General Liability Insurance. This is a great place to start among the most common types of insurance needed by small businesses. A Workers' Compensation policy is another notable one that many businesses require. Your state likely requires that you have Workers' Compensation Insurance if your company will have employees.

Marketing & promoting an entertainment business

According to the neighborhood an owner serves, marketing needs will vary. For instance, if the neighborhood is mainly made up of young families, the school or another stronghold may be the best place for them to learn about a business. Traditional paper flyers may be outdated, but they could attract the right audience.

Furthermore, social media can make it easier for people to find and share company information and information from websites such as NextDoor and Craigslist. To attract the desired audience, websites need to be professional yet personal.

Keeping customers happy

Making clients happy is always the goal; being memorable makes them remember us for years. The performers' job is to connect with their audience, so they understand that turning on a TV isn't always as fulfilling as seeing a live person in front of them. With all the entertainment available in people's homes, it is their responsibility to connect with them.

Create a website for your business

Next, you will need to create a website for your business after defining your brand and creating your logo. Though creating a website is an important step, some people may think it is beyond their reach because they do not know how to build a website. Back in 2015, this was a reasonable fear, but over the past few years, web technology has advanced significantly, making small business owners' lives much easier. You shouldn't need more than 2-3 hours to complete the process using our website building guides.