Starting a Gym 101: Licenses, Permits & Insurance

Starting a Gym 101: Licenses, Permits & Insurance

Business experts and Gym Kix owners Carrie Harris and Stephanie Beveridge

Number six on our checklist of key steps that every business should take to start their business on the right track is to get all necessary licenses, permits and insurance. There is so much to do when opening a business that sometimes people overlook the important legal requirements. In addition to the information we are providing below, please seek help from your city’s chamber of commerce, a lawyer or other trade associations serving the cheerleading industry.

Federal Requirements

With the exception of Sole Proprietors, most business types must apply for an Employer Identification Number (EIN).

Most businesses do not require a federal license or permit.

State Requirements

Business licensing requirements vary from state to state; however, we have listed the most common types below:

Business Licenses: A state business license is the most important document required for tax purposes and conducting other basic business functions.

Occupations and Professions: State licenses are frequently required for occupations – the cheerleading profession does not have this requirement; however, if you have a daycare type facility (keeping children for over 3 hours usually) you may want to check your state requirement.

Licenses Based on Products Sold: Some state licensing requirements are based on the product sold.

Tax Registration: If the state in which you operate has a state income tax, you’ll have to register and obtain an employer identification number from your state’s Department of Revenue or Treasury Department. If you’re engaging in retail sales, you will need to obtain a sales tax license.

Trade Name Registration: If your business will only be operated in your local community, registering your company name with the state may be sufficient.

Employer Registrations: If you have any employees, you’ll probably be required to make unemployment insurance contributions.

-Carrie Harris & Stephanie Beveridge


Past posts:

Starting a Gym 101: All Things Legal

Starting a Gym 101: Making the Big Decisions

Starting a Gym 101: Writing a Business Plan

Starting a Gym 101: Legal Forms of Business Ownership

Starting a Gym 101 



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