Starting a legally legit business doesn’t have to be scary. Whether you are beginning your small business journey or a few months deep, stressing over the looming fear of the law, this blog is here to help you understand the four things you need to be legally legit.

Business License

The first step in building a legally legit business is applying for and paying the necessary fees for a business license. Most counties and cities require a business license to enact business in their area. This is often done at the County Assessor’s Office or online, with a wide range of pricing to file. Many businesses start as a sole proprietor with a business DBA (doing business as) to officially enact business under their business name. This is often recommended to start with because of it’s low entry fee without the hefty LLC fees (especially in California where it’s $800 annually to stay legally legit).

Business Insurance

Once you’ve got your official DBA, you can get business insurance. Insurance is a fabulous safety net if your business ever gets sued. It also is necessary in the event realm because most venues require a COI (certificate of insurance) with them listed as additionally insured. You also want to have this in case of theft, damage, house fire, loss, etc. The details of your business policy are up to you, but I recommend getting it ASAP. You can never anticipate an emergency, but you can be prepared for one. I personally use State Farm, but I know there are many incredible options out there.

Business Bank Account

Before you actually enact any business, meaning before any money and service/product is exchanged, you need a business bank account. There are many reasons for this, but the most practical is for bookkeeping. It’s important at the end of the year to understand what you spent and made in the business, not jumbled in with personal finances. Business bank accounts are easy to begin often only requiring a EIN or proof of business license. I personally love Relay Bank. They are an online bank with a profit first model in their account features. This means they have a unique feature that allows you to set up your accounts, with no minimums or hidden fees, to reflect the bank account system shared in the profound book Profit First.The premise of this system is to make sure you get paid first and liveable as a small business. I love the automated transfers to my various accounts because it takes the stress out of finances for me.

Professional Contracts

Once you’re licensed, ensured and have that bank account ready, you’ve only got one step left: CONTRACTS! It is crucial, especially in the event industry to protect yourself and your clients with a ironclad contract. A contract is in place to protect both parties from unmet expectation, unfair treatment and outline clear deliverables. My personal favorite contracts come from The Legal Paige. I have over 15 contracts from her catalog that I use regularly. Paige was a wedding photographer who became a small business lawyer and created these templates from her experience in the industry. They are regularly updated and easily customized to fit your specific needs. Though she has a large quantity of contracts for photographers, she also covers dozens of other event and online business industries. You can use code REAGAN10 at checkout for $10 off of your contract. Even better, every year during black friday, the TLP team hosts a 40% sale that makes these contracts a steal! Check out what they have in their catalog here.

It isn’t hard to keep your business legally legit, but I know it can be overwhelming. Please know that you are not alone! If you need some guidance on how to set up your business you can always grab a course like Ready, Set Legal! by the Legal Paige, or find a mentor in your area to walk alongside you. You can even book one with me if you’re a photographer in the Southern California area.