How to Start a Mobile DJ Business

Start a Mobile DJ Business by following these 10 steps:

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

We have put together this simple guide to starting your Mobile DJ 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 Mobile DJ 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 Mobile DJ Business?

Since this is a touring business, most DJ entrepreneurs operate from a home office. Foregoing the expense of an office space will help reduce start-up and ongoing expenses, allowing you to budget more for what matters most - your “party supplies.”

Below is a list of basics you’ll need to get started:

• Laptop with plenty of storage space
• Music
• PA Equipment
• Lights
• Microphone
• Uniforms - remember, you’ll be in the spotlight throughout the event, so it’s important to look clean and professional
• Marketing materials - website, brochures, and business cards
• Attorney and/or CPA to help ensure you have a solid business plan and that it’s carried out smoothly
• Vehicle large enough to transport all your equipment
• Insurance

Sound and light equipment alone can set you back between $20,000 - $40,000, so be sure to conduct thorough research and shop responsibly.

What are the ongoing expenses for a Mobile DJ Business?

As a DJ business owner, your overhead expenses will be minimal. Below are a few items you’ll want to budget for in your monthly expenses:

• Purchasing new music regularly
• Insurance
• Advertising and website maintenance
• Travel time and fuel costs
• Payroll expenses - you could combat this expense by hiring employees on a 1099 basis
• Maintenance of sound/lighting equipment and purchase of new equipment as needed

Who is the target market?

Your customer base will span a wide variety of individuals who all have one thing in common - they have a need for music at their special event. While each will have a different idea of what music they want to hear, they should each understand that the DJ is integral to the success of the party.

How does a Mobile DJ Business make money?

Your business will generate revenue through each event played. The number and types of gigs you’re booked for depends largely upon your music collection and “party personality.” Most DJs charge an hourly rate or a flat fee for a given event.

How much can you charge customers?

Your fees depend upon your professional experience, services offered, and length of time for each event. Since you’ll be charging per event, spend some time researching what other DJs in your general area are charging. Experienced DJs have reported charging anywhere from $950 to $2,000 for a five-hour package.

How much profit can a Mobile DJ Business make?

If you participate in three events a week and charge $2,000 per event, your company will earn approximately $288,000 annually before expenses. Hiring additional DJs will not only assist in covering overhead costs, it can more than double your business’ profit, depending upon the pay scale you and the employee agree upon.

How can you make your business more profitable?

The following are a few strategies other mobile DJ businesses have implemented to ensure a more profitable business:

• Consider partnering with musicians/live bands to offer a unique sound.
• Approach local nightclubs, bars, and restaurants. Many are now regularly providing live music for their patrons as they eat or socialize. Think outside the box. Obviously weddings will be high on your list as a profit generator, but what about birthday parties, grand openings, music festivals, and bat mitzvahs?
• Offer audio production for jingles, ads, and videos for radio, internet, and tv spots.

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 Mobile DJ 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 mobile DJ business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Service Contract

Since mobile DJ businesses provide services for events, it would be beneficial to write up a contract outlining exactly what services are expected, what form of compensation shall be received, and any other relevant information. An example of such a contract can be seen here.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your DJ business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Music Licensing

In order to play music in a business setting, permission must be acquired from the composer or license holder. Typically, it is possible to obtain a “blanket” license allowing a businesses to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from Performance Rights Organizations, such as ASCAP or BMI.

• Learn more about music licensing requirements

Service Contract

Since mobile DJ businesses provide services for events, it would be beneficial to write up a contract outlining exactly what services are expected, what form of compensation shall be received, and any other relevant information. An example of such a contract can be seen here.

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?

If you love bringing people together through music, being around crowds, and are ready to be your own boss, owning your own mobile DJ business would be a rewarding career choice.

What happens during a typical day at a Mobile DJ Business?

As a DJ, you’ll spend your days split between music and interacting with people. While the activities of each day vary, most days you will:

• Conduct interviews with party hosts and/or planners to get a feel for what their vision is for the party and what types of music they love, as well as what music they would like to avoid
• Schedule and carry out walk-throughs of party venues. This will allow you to make the most of the space made available to you. Your walk-through also offers you a great opportunity to get a feel for the acoustics - not every space you play in will have good acoustics; it’s your job to adjust
• Increase your music catalog based on newest trends and current customer requests
• Map out a timeline for each of your upcoming events, based on the party’s schedule/needs
• Market your business and network
• Follow up with hosts after the event to get any feedback

Additionally, there will be administrative duties to attend to. As your business grows, it might be cost-effective to delegate these responsibilities to a trusted staff member, offering you more time to focus on the nuts and bolts of the company.

What are some skills and experiences that will help you build a successful Mobile DJ Business?

A successful mobile DJ needs to be a fairly empathic person, as your job consists of “reading” the crowd to determine what music is best suited at a particular time. This involves paying close attention to the mood of the event-goers and the overall atmosphere of the event. Interaction with the crowd is also critical, so it’s imperative that you have an outgoing personality. As the DJ, much of the focus will be on you throughout the event. It’s your job to ensure the crowd appreciates and reacts to you, without taking the spotlight away from the party hosts.

Since you’ll be playing a variety of tunes, it’s also important that you have an ear for music, so the transitions from one song to another are smooth.

What is the growth potential for a Mobile DJ Business?

Your company’s growth potential is directly tied to the needs of the area you serve, saturation of the market, and the amount of talent available for hire. There are currently no franchise opportunities available - once you’ve built a sound reputation, offering this opportunity to others could be a great way to expand your business.