How to Start a Fireworks Tent Business

Start a fireworks tent business by following these 10 steps:

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

We have put together this simple guide to starting your fireworks tent 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?

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 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 a fireworks tent business?

The three things that you will always need to start a fireworks tent are as follows; a tent or movable, collapsible structure to conduct your business, the fireworks themselves, and money for any staff and security you may have during the season. These can all vary widely but always consider if you don't sell your inventory by the end of the season, you may be left with a huge money sink. Choose carefully when buying fireworks. The tent may also be a bigger consideration, as a tent that lasts several seasons will almost always be worth much more than a tent that is only good for a season.

Who is the target market?

Your biggest market will be those throwing 4th of July parties. Depending on what yours state allows you to sell your audience can range from young children to adults and everything in between. Providing a wide variety of price points and bundling fireworks together will help keep all your markets satisfied.

How does a fireworks tent business make money?

Fireworks tents make money by buying fireworks in bulk from suppliers and then selling those fireworks piecemail. Essentially acting as a middle man between the factory and the consumer. Creating high profit margins with the ability to negotiate through your bulk discount you can make a significant amount of money by being a salesman. Your biggest issue will come if you are left with fireworks at the end of 4th of July. As time passes farther from the holiday your sales will plummet. 

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 fireworks tent 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

Certain state permits and licenses may be needed to operate a fireworks tent business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Sale of Fireworks

For a complete list of laws state by state regarding the sale of fireworks please check out this resource from US Fireworks

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?

This business is a good fit for entrepreneurs who are pyrotechnical minded. It also helps to have strong social skills as many of your sales will be negotiable. Having a love for summer and the outdoors will also give you an edge over your competition.

What happens during a typical day at a fireworks tent business?

Your day to day opperations generally involves stocking and pricing your inventory, marketing your stand to attract clients, selling to those clients, and then hopefully lighting off a few fireworks at the end of the day. Since your peak times will be around July 4th yoou may have a varied schedule depending on demand. 

What are some skills and experiences that will help you build a successful fireworks tent business?

Having sales experience is a big plus when opening a fireworks tent. Having good relationships with your suppliers and your clients will be key in growing and profiting from your business.

What is the growth potential for a fireworks tent business?

Growth for fireworks tents comes in having more of them over a wider area. Due to its seasonal nature, fireworks tents rarely operate all year round, especially in states that get heavy rain or snow. Opening more tents each year is a good sign that you are on the right track, but also expanding your inventory and hiring more staff will allow you to create a dedicated team of salesmen, who will hopefully create better profits for you.