View Full Version : Do you need license and insurance for an on the side busines

06-07-2006, 10:51 PM
I am a stay at home mom. With my husband working a 50+ hour work week there is no time for me to work outside the home. We need extra $ though.
I have a passion and a gift for event planning and thought to make it into an "on the side" business out of my home. There is no $ for start up costs such as licensing and other fees.
My question is, if my business starts working for family, friends and neighbors and moving on to their family and friends and so forth, do I still need the licensing? I would need to make the amount needed first to afford those costs, but I want to make sure I can advertise with flyers in the neighborhood without it. Thanks so much!!!!


06-13-2006, 09:42 AM
I think insurance is always a good idea. I say start looking into it now, find an inexpensive option, and purchase it when you are ready. You never know when something crazy will happen like you make and sell a heavy gift basket, and the person throws their back out lifting it - and then they sue you. Like I said crazy, but it could happen.

It will be totally different I think but I'll tell you what I'm doing (when my product is ready to sell). I am an ICU nurse and I have my own malpractice insurance policy, which, when employed by someone else, only costs like $100/yr. Now since I will have my own business, they will upgrade my insurance and cover me as self employed, and its only $300/yr. Not bad I think.

06-15-2006, 09:07 PM
You should check with your local city hall. Unless they have some zoning law restricting or prohibiting a home business, there is a good chance you will be fine. But it depends on where you are. As for insurance it is a good idea to get it as soon as you can. Anyone can sue you at anytime and they don't need a valid reason.

07-04-2006, 08:46 AM
Jamie, for an event planning business you likely will not need a license (a lot depends on your location). Do a search on your state's web site everything you need about licensing should be right there.

However, you will want to register your business. Check with your town or county offices. That is likely no more than $10 to register your business name and get a certificate. With that certificate you can open your business checking account. You will want the separate bank account as part of your proof to the IRS that your business is indeed a business and not just a hobby.

Since event planning ususally involves a lot of people attending an affair of some sort, you will want some sort of liability insurance. When somebody slips and falls they will take advantage and want to get money from everybody.

Good luck with your new venture!

01-15-2014, 11:09 PM
I don't think these are required but it's always best to have an insurance ready for business. At least it's the deal in Asian countries. In the US, I think you still need to declare it to the IRS.

02-01-2014, 07:26 PM
If you make less than $600 you do not need to report the money to the IRS as income. You do want to check with your local government for their requirements such as requiring a license.

02-02-2014, 12:45 AM
It depends on how much money you make. Over $600 dollars and you have to file taxes for that. Check with your local legal offices and you should get the information you need.

02-02-2014, 10:40 PM
Do what you need to do for your family. I doubt you will need insurance or a license, especially for event planning. I think it is a great idea and hope you are successful! I would register for a fictitious business license (DBA), but that shouldn't cost very much money.

02-04-2014, 12:01 PM
It really depends on how big your business is, what you sell and how you operate. I make pillows, and sell them. Usually on Ebay, so I basically just deal with paypal! I also sell them on the classifieds site offered to me, and that's usually just a cash exchange. I don't need a business license, or anything! But if you are going to have a legit business, and there might be people coming into your house, or something could happen that someone could possibly sue you for, you will probably want to get insurance!

03-26-2014, 04:52 PM
I'm not at the point that I would need something like that but I imagine that when (not if) I continue to pick up business I might consider it. For some of the work that I do outside of my office I am bonded. That protects not only the client but also myself.

03-27-2014, 12:38 AM
That depends. As long as you are not violating any major laws then you would be fine. But when they require you to have a license then you should comply, insurance is always optional.

03-27-2014, 12:11 PM
It depends on the country as well. In my country, you need to have an insurance.

03-28-2014, 10:17 AM
Only certain business need to be licensed, as far as insurance you should definately have that in case of damage to clients property, or just general liability insurance.

03-27-2016, 11:33 AM
I think this depends on the state and where you live. But for most part I would think you wouldn't need license or insurance for something like Event planning. But depends on allot of variables, what type of events do you think you would be doing?