What Event Planners Need to Know About Legal Issues and Requirements

July 26, 2022 by No Comments

These are the essential legal requirements to run an event planning business.

These may be familiar if you have your own business. It’s a good idea to revisit these issues in case you haven’t thought of any.

Pay your business taxes.

You don’t need a tax advisor if you don’t already have one. Instead, review common tax pitfalls. This includes proper documentation and deductions specifics.

Problem: You’re a new event planner in your first year. Because you don’t have a lot of clients, you skip quarterly taxes. Your tax preparer will inform you that quarterly IRS payments were due to the business at the end of the year.

A solution to Talking with a licensed tax professional will ensure that your company is properly registered with the government. Make sure you have enough money to pay the taxes for each job.

Register your business

Some cities may suspend or fine you if you don’t have the proper paperwork when you first start your business.

Problem: After failing to apply for the license, you receive a mysterious letter from the small business office in your city.

Solution: Pay the fine immediately and register your business. The local office should be able to guide you through the process over the phone or online. You can avoid big surprises by paying a little upfront.

Make sure you have the right client contracts.

You should ensure that every event planning contract you draft for a client includes certain clauses to cover any eventualities.

Problem: A long-time friend approaches you about a large event they would love you to plan. You have an existing relationship with the person and have done business before, so you avoid asking them for signatures. In the middle of organizing the event, you find out that something happens beyond your control, and they no longer want payment.

Solution: Always keep a contract in force. Always. It protects your business and can set expectations, clarify the scope of your work, streamline communication, and help you to resolve any issues.

Avoid business name disputes

You can avoid a lawsuit by doing a quick Google search. Do not let competitors (even those with outdated websites and barren social network accounts) claim that you stole their name.

Problem: You receive a cease-and-desist letter from a company claiming that you have blatantly copied their business name after registering it.

Solution Do your homework first. If you do not have the time or resources to research and find yourself in this position, it is worth starting over, especially if they threaten legal action. Sorry, no business name is worth what you might lose if they go to court.

Secure Commercial General Liability Insurance

Insurance is essential to protect your business and career, whether you are a corporate party planner or a private planner.

Problem: An older person falls on a light cable during your event and breaks their wrist. They claim you are responsible for the accident, and their insurance contacts them about the hospital bills.

Solution This situation can be handled with some preparation. You can find the right insurance for you, but make sure it is ready when you need it.

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