Event planners and small business owners must prioritize protecting their investments in every project they undertake. This article provides key insights into legal issues and requirements that every event planner should be aware of, ensuring their business is safeguarded.
Must-Know Legal Requirements for Your Event Planning Business
If you own your own business, you might already have some legal requirements covered. However, it is always wise to review them to ensure you haven't missed anything important. Here are some legal issues you may not have considered:
1. Pay business taxes
In your first year as an event planner, it's crucial to pay attention to your tax obligations. Failing to pay quarterly taxes can lead to unexpected financial burdens. To avoid any unpleasant surprises, consult with a licensed tax professional and ensure that your business is set up correctly with the government.
2. Get a business license
Starting out without the proper paperwork can result in fines or the suspension of your business activities. It's essential to apply for the appropriate license to avoid any legal issues. If you receive a notice claiming that you owe a substantial sum, it's best to pay the fine promptly and register your business.
3. Create the right client contracts
Every event planning contract should include clauses that protect both parties in case of unforeseen circumstances. Regardless of your relationship with a client, it is crucial to have a contract in place to outline expectations and cover your business. This will help streamline communication and protect your interests.
4. Get ahead of business name disputes
Before finalizing your business name, it's essential to conduct thorough research to avoid potential legal battles. A simple Google search can save you from lawsuits and accusations of name theft. If you find yourself in such a situation, it's better to start fresh than risk a costly legal fight.
5. Secure Commercial General Liability Insurance
Having insurance is essential for any event planner, regardless of the nature of your events. Accidents can happen, and being prepared with the right insurance coverage will protect your business and your career. Ensure you have the appropriate insurance well before your first event to avoid any complications.
Top Legal Issues in Events Management
In addition to your own legal requirements, it's crucial to consider the legal issues that may arise from working with clients, venues, sponsors, and partners. Here are some top legal issues you should be prepared for:
1. Have a Child Protection Policy
Event planners are responsible for providing safe environments for children at events. This includes keeping them away from alcohol, providing entertainment, and coordinating search efforts in case of emergencies. To avoid legal trouble, make sure you responsibly store and serve alcohol and have a child protection policy in place.
2. Set up Hired and Non-Owned Auto Insurance
As an event planner, you may be held responsible for any auto-related issues that occur during your events. Whether attendees drive themselves or there are hired transportation services, having the right insurance coverage is crucial. Make sure you have adequate coverage and confirm the venue's vehicle policy in advance to avoid complications.
3. Prepare for Event Cancellation
Disputes and unforeseen circumstances may lead to event cancellations. It's essential to have clear cancellation terms outlined in your event planning contracts. These terms should cover the responsibilities and financial obligations of all parties involved. By covering your bases, you can navigate event cancellations smoothly.
Legal Requirements for Venues Conducting an Event
When choosing a venue for your events, it's essential to consider their legal requirements and potential issues. Here are some key aspects to keep in mind:
1. Get a Liquor License
If you plan to serve alcohol at your events, ensure that the venue has a valid liquor license. In the event that the venue loses its license, it's crucial to have a backup plan. Ask the venue to purchase liquor liability insurance or consider obtaining your own to accommodate open bars.
2. Get a Fire Marshal Permit
Check if your city requires special events permits, especially if your event is held outdoors. If a fire marshal permit is necessary, make sure you include enough time in your event timeline to obtain the required permissions. This will ensure compliance with safety regulations and protect you from legal issues.
3. Get a Health Department Permit
If you plan to serve food at your event, be aware of health department regulations. Some counties require a temporary food facility permit, which involves inspections and compliance with specific guidelines. Collaborate with the venue manager to ensure that all requirements are met and your event is approved.
Overcoming Legal Issues for Events with Adequate Planning
Starting an event management business requires careful planning and consideration of potential legal issues. By familiarizing yourself with the key legal requirements and taking proactive measures to address them, you can confidently navigate the event planning industry. With proper preparation, you'll be on your way to building a successful career.
