How to Start a Circus Business

Start a circus business by following these 10 steps:

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

We have put together this simple guide to starting your circus 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 Circus 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 circus business?

The exact costs to get started are highly dependent on the format of the show. Without animals, huge venues or complicated equipment, owners could conceivably get started with practically nothing (especially if they rely mainly on acrobatics.) They could even offer their original employees profit-sharing rather than full salaries to defer additional costs.

What are the ongoing expenses for a circus business?

Ongoing expenses can include anything from equipment replacement to salaries to general advertising. Each circus will have their own budgets based on who they cater to and how complicated their shows are.

Who is the target market?

For many years, a circus was primarily meant for families who had enough means to spend money for a day of fun. However, endeavors like Cirque du Soleil have introduced more adult-themed content into the market. Now, clubs hire small circus troupes to perform for their patrons and parents hire acrobats to perform for their children's birthday parties. So the business model is fluid enough to alter the demographic based on who is most likely to consume the services.

How does a circus business make money?

A circus charges people per ticket or per show based on everything from employee salaries to the cost of the venue. The idea is to ensure the ticket price can account for unplanned dips in the budget or underperforming locations or time periods.

How much can you charge customers?

The most popular acts in Vegas can charge up to $300 or more for a single ticket. A smaller circus will usually base their rates on the scope of the performance. For example, a circus may offer 10 different acts, but only charge a corporate event for two because that’s all the space will accommodate.

How much profit can a circus business make?

Circuses can make considerable profits once they find their market. If a small circus charges $2,000 a night to perform at clubs and operates at a 15% profit margin, they’d make around $108,000 a year in pure profit if they performed every night.

How can you make your business more profitable?

Collaborating with other circus performers may be a good way to increase profits. For example, a small circus may want to loan out some of their best performers to a larger show. This type of collaboration not only strengthens long-term relationships, it can also be a good way of finding new acts or performance art that can potentially draw even bigger crowds.

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

Certificate of Occupancy

A circus business is generally run out of a large event venue. Businesses operating out of a physical location typically require 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 a circus business.
• 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 circus business 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?

Those in the circus should be able to handle a lot of stress in a short amount of time. It takes a lot of coordination to handle the schedule of each act and there’s a lot of pressure to hire people who are charismatic enough to put on a show without crumbling under the weight of the multiple performances. Owners also need to be inherently creative to conceive of performances that will satisfy a modern audience.

What happens during a typical day at a circus business?

Most circuses will spend a lot of time preparing their acts, spending the majority of the day practicing, honing, and perfecting their craft. There will also be people dedicated to deciding how to market the circus and where to take the show next.

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

Organization and instincts are two skills that will be pivotal to developing a circus. Few college courses will cover the more formal points of running a circus, so it comes down to an owner’s drive and innate talent. (However, an MBA may be useful when it comes to structuring the financial or marketing sectors of the business.)

What is the growth potential for a circus business?

With the ubiquity of filmed content available for families looking to blow off steam, circuses have steadily declined in popularity. The bankruptcies of famous shows that were once money-making machines suggest that circuses are going the way of vaudeville. However, there has been a growing movement of smaller circuses with modern twists that are really starting to take off. These new types of circuses have the potential to become the standard rather than the exception due to their growing popularity.