Should I Start an LLC for My Batting Cage?

Starting a limited liability company (LLC) for your batting cage business can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a batting cage business, lawsuits can arise from things like customer injuries (as a result of your coaches’ negligence), nuisance complaints, and slander.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your batting cage business seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

A row of baseball bats lean against a chain fence

Do I Need an LLC for a Batting Cage?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Batting Cage

By starting an LLC for your batting cage, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Batting cages will benefit from liability protection because of the risk of personal injuries or property injuries as people are using the facilities and equipment.

Example 1: As a result of the negligence of one of your coaches, a customer is seriously injured after being struck in the face by a ball from a pitching machine. In the ensuing lawsuit for the bodily harm the customer suffered, any compensation your business might be liable to pay can only be levied against your business’s assets.

Example 2: In a promotional video for your batting cage business, an employee is heard making a disparaging joke about a competitor. The competitor feels that this comment negatively affected their reputation and thus sued for slander. Limited liability would prevent any damages you may be responsible to pay from reaching your personal assets.

Example 3: Since your batting cage business is open until quite late in the night, and is located in a residential area, you often receive complaints from neighbors about the level of the noise. One of the affected neighbors decides to sue your business on the basis that the noise pollution it creates is a constitutional nuisance that affects his ability to enjoy his property. If you are found liable to pay the plaintiff damages, these can only be imposed on your business’s assets.

Example 4: One of your pitching machines is miscalibrated and a customer is hit in the face with a ball. They sue you for the resulting medical damages.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Batting Cage

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a batting cage owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Batting cages rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a professional LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All LLCs require insurance; it provides necessary protection to the assets that your business owns from the liabilities it faces on a daily basis.

It is worth noting that limited liability is a completely distinct form of protection that instead guards your personal assets against the business’s liabilities.

Common Situations Business Insurance May Cover for a Batting Cage Business

Example 1: Upon entering the batting cage, a baseball strikes a customer in the back. The resulting injury forces the customer to seek medical attention and he or she is out of work for several weeks. General liability insurance would cover the customer’s medical bills, lost wages, and any required legal representation.

Example 2: Two customers have an argument and throw a bat, hitting a child. The child’s parent names your establishment in a lawsuit. A general liability policy would cover legal fees and any resulting payout.

Example 3: You use a photo from a recent baseball event in your newest marketing pamphlet. Your marketing representative failed to obtain permission from one of the customers to use their photo and that customer is now suing your company. General liability insurance would cover your legal representation fees and any resulting payout, up to the limits of your policy.

Other Types of Coverage Batting Cage Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all batting cage businesses should obtain.

Commercial Property Insurance

If you own the building in which you run your batting cage business, you will need to purchase commercial property insurance as part of your insurance package. In the event of a covered loss, the policy would cover the building as well as business property you keep on-site.

When considering your coverage amount, it’s important to include the cost of any renovations you’ve made to the building and the replacement cost of all business property and specialized equipment stored there.

You can typically purchase this coverage as part of a business owner’s policy (BOP).

Workers’ Compensation Insurance

Your team is an essential part of your business’ success, so it’s important to cover them should an injury occur on-premises. Workers’ compensation is the state-mandated insurance that covers each employee in the event of a work-related illness or injury. This covers medical bills for an employee’s work-related injuries, offers payment for lost wages, and also provides legal representation should a lawsuit occur.

You must purchase workers’ compensation insurance as a standalone policy.

Product Liability Insurance

If selling baseball equipment is part of your business model, you may also need to purchase product liability insurance. This policy covers situations in which a customer falls ill or is injured by faulty equipment. You can tailor a product liability insurance policy to your business model and the products you sell.

Commercial Umbrella Liability Insurance

A steady flow of customers exposes your business to greater liability risks. Because some claims may exceed the coverage limits of your primary policy, you may want to consider purchasing additional insurance. Commercial umbrella liability insurance increases liability coverage, protecting your business against large covered lawsuits.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance, workers’ compensation insurance, and commercial property insurance.

Read our Batting Cage Business Insurance article for more info.

The total cost of startup up varies depending on the type of facility you select (indoor or outdoor), plus the number of batting cages.

Indoor establishments four/five cages will suffice, whereas larger outdoor establishments may require up to nine cages. Administrative supplies and specialist baseball equipment will further increase the total cost.

Visit our How to Start a Batting Cage guide to learn more about the costs of starting and maintaining this business.

Ongoing expenses will vary, depending on how many team members you employ, whether your facility is indoor or outdoor, and what additional services you offer.

Learn more about running a batting cage.

Batting cage businesses primarily make money by charging individuals to use their batting cages for a certain amount of time.

Learn more about starting a batting cage.

A batting cage provides an area for individuals and groups to practice their baseball batting skills. Some batting cages are entirely outdoors, while others also provide indoor facilities for use year-round.

Profits for a batting cage business can be decent, with many batting cage owners reporting first-year profits of about $40,000.

Learn more about starting a batting cage.