How to Start an Acting Classes Business

Start an acting classes business by following these 10 steps:

1. Plan your Acting Classes Business
2. Form your Acting Classes Business into a Legal Entity
3. Register your Acting Classes Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Acting Classes Business
6. Get the Necessary Permits & Licenses for your Acting Classes Business
7. Get Acting Classes Business Insurance
8. Define your Acting Classes Business Brand
9. Create your Acting Classes Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your acting classes business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Acting Classes Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening an acting classes business?

Here’s how your annual start-up costs might break down:

Workspace -- Zero to $10,000 or more per year. This range is so wide because you might be able to start your business in your own home, with one or two clients, if your zoning laws allow. However, as your business grows, you’ll need more space. Also, depending on your type of acting business, you might require a stage or room for camera and lighting. Ask around if you can rent a stage for a few hours a week from a community theater, school, church group or similar source. You might also decide to rent a storefront, which can cost anywhere from $250 a month or much more, depending on location.

Promotional material -- $500 or less. Platforms like your website and social media can be very inexpensive or free. Make sure you have video clips of your own acting or directing performances or videos of those you’ve coached in the past. These clips can run on your website or YouTube for little to nothing.

Special equipment and gear -- Depending on your type of instruction, this can cost zero to $15,000 or more. Such equipment can include videography services, audio production facilities, microphones, amplifiers, and similar specialty equipment used for training in voice-over work or providing demo reels to clients.

Licensing and professional services -- $1,000 or less. Explore such regulatory matters as obtaining a business license, tax identification number, and liability insurance. You should also have an initial discussion with an attorney and accountant to make sure you start your business legally and in the most efficient way.

What are the ongoing expenses for an acting classes business?

Your largest ongoing costs will be for your space and for employees, if any. You could also make investments in the services of ad agencies or public relations firms to continue to attract students.

Who is the target market?

Your clientele will vary, depending on the niche you’re filling. One end of the clientele spectrum could be parents parents who would like to get their child involved in a fun, after-school activity. Often times, parents enroll their children in acting classes in an attempt to get their child involved in an activity that will help with boosting the child’s courage and self-confidence. Sitting at the other end of your clientele spectrum may be more passionate students who are looking to enter the world of career acting or those who have already ventured into the professional acting scene.

How does an acting classes business make money?

You revenue will mainly come from the fees that you charge your clients. You may charge your clients for individual sessions, or you can have them sign up and pay for a set number of classes, each of which build upon the skills they learned in the previous class.

How much can you charge customers?

This veteran actor and acting coach suggests that an eight-week session of improv classes that meet three hours a week could logically cost $400-$500. However, this is in New York, and your local area might not be able to support that rate. This page also gives fee guidance for other sorts of acting training including individual consultations, voice lessons, auditioning training and other niches. Also consider what your market will bear in term of the fees you charge.

How much profit can an acting classes business make?

The closest classification from the U.S. Bureau of Labor Statistics is for post-secondary art, drama and music teachers. For this group, the mean salary was listed as $81,050. On the other end of the spectrum, here’s an industry source that references an average annual salary of $38,000 for an acting coach. The profit you might make is highly variable, depending on your location, industry reputation, and many other factors. It will also depend on the classes and services offered and your ability to sell your services and grow your business.

How can you make your business more profitable?

Listen to your students and the questions they raise and obstacles they meet in advancing their acting careers. Their queries might suggest additional classes. You can also using your talents to offer workshops to teach presentation or speaking skills to business professionals. You may also consider branching into the talent agency business or representing movie extras or other niche groups within the industry.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your acting classes business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

In most states, it is necessary to obtain an acting coach license. Certain state permits and licenses may be needed to operate an acting school. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

If you’re operating an acting school out of your own home, you will need a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an acting school.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your acting school will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Credibility is critical, so it’s imperative that you have a connections in the entertainment business. You do not need to be famous, but you need to have relationships with others in the industry, so they can verify that you have the knowledge needed to teach others the art of acting. If your specialization is in film acting training, you should be a current or retired film or television actor, director, casting director or have similar industry experience. If you’re teaching commercial acting, you should have experience as a commercial actor, director or on the ad agency commercial production side. Your reputation in the acting community and how you promote your credentials will be critical to your success.

What happens during a typical day at an acting classes business?

Your typical day might include many of the following responsibilities:

• Promoting your services and seeking clients. This involves posting to social media, pitching story ideas, making yourself available for media interviews, etc.
• Scheduling videographers, lighting techs, make-up artists, assistants, and others who might help with classes
• Conducting classes, workshops, or one-on-one coaching sessions

What are some skills and experiences that will help you build a successful acting classes business?

Your reputation is critical. Prospective clients must be aware of your experience and expertise in the acting profession before they’ll register for your classes. This means that you not only need to have a background in the industry, but the ability to showcase yourself and present your accomplishments in a way that will attract clients. You should be adept with social media and be able to find ways to promote yourself and your services in the media.

Finally, your teaching, training and/or coaching methods must be seen to be of value to students so they’ll continue to take classes and recommend your services to others. If your students do not improve their skills, they will attribute it to poor teaching. If this happens, it is likely that they will not continue taking classes from you, and they will not share positive thoughts about their experiences with others that consider taking your classes.

What is the growth potential for an acting classes business?

The entertainment industry is constantly growing. In fact, in 2016 the U.S. Bureau of Labor Statistics predicted a “faster than average” growth rate of 10 percent for actors between the years 2014-2024. This means that there is and will continue to be a demand for acting coaches in the years to come.