In order to start an event business, you’ll need to become an official business. Agencies, planners, and coordinators will benefit from completing the requirements – because not doing so could be disastrous. The credentials and paperwork needed will take time and patience, and they are a necessity. I’ll be providing a brief sketch of what you need in order to provide services at special events. Do your research by contacting your local jurisdictions and city agencies for specifics on your operation.

The owner of one of the biggest catering firms locally once told me that he has come across numerous customers who had hired unlicensed and unofficial caterers for their events in order to save money. I could not imagine what would happen if a group of people at a wedding got sick off their food – that would probably be the end of their catering business.

Agency Contracts and Licenses

Requirements for operating your business will vary from city to city, county to county, and state to state. For example, talent agency annual fees vary from state to state as explained here. http://smallbusiness.chron.com/requirements-opening-talent-agency-10170.html. Businesses such as event design companies, staffing agencies, and entertainment companies might only need a local city business license, a fictitious name statement (dba), and full insurance to cover their operations.

Business Contracts

Some vendors might ask for a standing contract when you subcontract them at events. Your vendors, contractors and team members should have all working parameters understood and agreed upon when engaging in work for your agency. Disagreements will happen, and having your agreements in place will help you out through the conflicts.

Insurance

Liability insurance is the most often required form of coverage for services provided in the special events industry. Many venues and organizations will require a certificate of insurance covering liabilities for the day of the event. The insurance company will then issue this certificate to the venue or organization. The cost for individual certificates may vary as well.

Consequences

If there is any conflicts or accidents when operating your event business, these types of official coverage above will help get your business through the troubles. The absence of official business coverage could have disastrous consequences without them. Business shutdowns, insurance claims, audits and investigations can all bring disaster to small businesses if they are not prepared and covered by official credentials.

Resources

Contact your local city office and inquire about business requirements.

The Small Business Administration (SBA) and the SCORE department provide a tremendous amount of free and paid services intended for small business growth. California businesses can check out free seminars Board of Equalization Seminars  which are a great place to gain understanding your business requirements.

photo credit: Professional Proposal, Contract & Invoice via photopin (license)

Patrick Duffek, Founder, Event LightNing Mobile Productivity Apps, has managed over 12,000 events for the Silicon Valley computer giants, organizations and special events over two decades.