Starting a fitness business is exciting, but setting up business is so super important!
We need to make sure you’re on the right path!
This high-level checklist is great EVERYONE.
These are the steps you need to make sure you have on lock-down to have a professional and protected fitness business.
Let’s get started.
#1 Choose a legal name
What do we mean by that? Can’t I just pick the name I want?
Yes AND NO!
You want to make sure you’re not violating any Federal or State trademarks, as well as ensuring your name is available. Don’t want to get kicked out of business for a mere issue with name. Or worse, have to hand over all of your profits for the time you were using someone else’s name. PLUS you’d have to rebrand in the end.
- Search the USPTO office
- Search your local State website
- Google (but don’t rely on people’s SEO)
- Check social media handles
- Hire a firm to do the proper searches for you
Let’s make sure we don’t spend time + money + energy building a business on a name that we aren’t legally allowed to use!
#2 Set up your legal entity
What? Can’t I just start soliciting clients and call it good?
Well, you can. But you can also have your personal assets, including ANY monies you make (whether from fitness biz or another job) on the line should an issue happen.
You can choose from Sole Proprietor, LLC, C Corp, S corp and Partnership structures. Choose the one that fits your plan – not just what everyone else is doing! As you can see from the list below, Sole Proprietor isn’t really a recommended option as you have no protection.
Setting up your legal entity is important for the following reasons:
- limited liability protection – protect your personal stuff
- demonstrates professionalism to clients
- tax benefits (which may vary by specific circumstances)
Don’t forget that setting up your LLC/Corp is not all you need to do. There’s the federal name checks (see #1 above), and drafting of Operating Agreements/Bylaws as required by State law.
Caution: DO NOT follow the advice of Small Business Association offices – they can’t provide anymore than we provide here generally. If they try to give you specific, individualized advice you need to have this checked by a lawyer. They are not allowed to provide legal advisement.
#3 Make the appropriate tax elections with the IRS (if applicable)
You could be saving more money on your Income Taxes through special elections – be sure you’re doing it!
#4 Get your sales tax permit
Remit your sales taxes if applicable and be sure you know WHAT products and/or services to charge on.
Careful if you’re doing all inclusive collections without breaking out sales tax that may be a state law no-no!
#5 Get other appropriate license and permits for your jurisdiction
Don’t get shut down for simply not getting the right licenses and permits for operation. Licenses can include extra business licenses on top of your formation. Permits can be for opening/operating.
Note: A license is a permission to do a certain activity. License is NOT the formation of LLC or Corporation. That is legal entity, as seen in Step #2 above.