How to Start an Event Planning Business

Start an event planning business by following these 10 steps:

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

We have put together this simple guide to starting your event planning 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 Event Planning 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 event planning business?

An event planning business can have a fairly low overhead for start-up. If you are based from home, you will avoid rent and utilities costs. Other costs will include:

• Business website and site hosting
• High speed internet and phone service
• Advertising and marketing
• Payroll
• Equipment
• Business licenses and taxes
• Insurance

What are the ongoing expenses for an event planning business?

Re-stocking supplies, employee payroll and replacing damaged or broken equipment constitute much of the ongoing expenses. Other expenses can include:

• Event publicity and invitations
• Equipment rental
• Signage and flyers

Who is the target market?

Your target market will consist of clients wanting either social or corporate event planning. Social event age groups range between 25-60+ whereas corporate events are focused more on employees and other business entities, regardless of age.

How does an event planning business make money?

Event planners make their money from the service fees, paid by the client, for the planning and operations of the event.

How much can you charge customers?

Because events are priced on a sliding scale of size and supplies/workers needed, pricing can range quite a bit. Many event planners charge a percentage, say 15-20%, relative to the overall cost of the event. Therefore, if an event is $100,000, the event planner would be collecting between $15,000-$20,000.

How much profit can an event planning business make?

Profit margins depend on the size and number of events you pick up per year. A social event planning business can make between $10 - $75 per hour, whereas a corporate level event planning business could charge between $15-$150 per hour. An average salary for an event planner employee is around $35,000 annually, with an owner averaging $75,000-80,000.

How can you make your business more profitable?

As the event planning business becomes well-established, you may consider adding additional services, such as catering, bartending, or even photography to your customer options. By supplying in-house hospitality services, you are able to offer clients a full-service experience and, in turn, create more business revenue.

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

Services Contract

Event planning businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your event planning 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.

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 with an eye for detail, applied creativity, and the ability to easily converse with the general public, will find a great match in event planning. You must also have patience, humility, and the ability to help materialize the customer’s vision for their event.

What happens during a typical day at an event planning business?

An event planning business makes its money from hosted events. This means interacting with current and potential customers is critical. Either one on one or through larger social media outlets, a successful event planner must constantly work to get their name and reputation known to the public. Additionally, the business will be:

• Reading and responding to customer e-mails
• Re-stocking event inventory
• Communicating with vendors or business partners, regarding upcoming jobs
• Marketing and PR work
• Employee training and continued education

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

To begin, it is not necessary to obtain a degree or professional certificate of training for event planning. It may help you, but many successful event planners learned many of the skills needed from on the job training. A background in customer service or the hospitality industry can provide great experience.

You should also be familiar with or be able to:

• Communicate effectively, both in writing and verbally
• Possess strong organizational skills
• Be flexible and prepared to make adjustments to plans

What is the growth potential for an event planning business?

Event planning is steadily growing as an industry. With increased globalization in business, more and more companies are looking to host professional, well-organized events to grow their own businesses. And, as business grows internationally, event planning will continue to mirror this trend.