The gym opening license It is part of the procedures and all the requirements that you must meet when starting your business, as many people excited about opening their business forget the importance of legal procedures.
That is why today you will read everything you have to know to legally establish your business.
Gym opening license and requirements
When you request the gym opening license You must meet the federal requirements that are required by most states, unless you have decided to start your business as a sole proprietor.
Well, one of the federal requirements that you must meet is the application for EIN or employer identification number.
State requirements:
As the name indicates, commercial licenses are variable in their need to be managed according to each state. However, the most common are:
Business licenses:
The state business license is the most important because it is required for the payment of taxes and for you to perform the basic functions of the business.
DBA:
DBA is the Doping Business As, the business name registration, but alternatively you can present your business as an LCC or a corporation.
The DBA is issued by the state. From this document you receive authorization to do business with the name you have chosen, since it will be a fictitious name.
But remember that if you establish your gym as an LLC or a corporation you do not need to file a DBA.
EIN:
Is he tax identification number, you need it if you sell or buy gym supplies, merchandise or food wholesale.
Federal EIN: All businesses need a federal tax identification number unless you are an independent contractor and a non-compliant company.
This means that as an independent contractor you will conduct business on your own and receive more than $ 600 a year.
However, the IRS regulates the issuance of a 1099 form for the independent contractor based on obtaining the federal tax identification number because you can use it as the business tax identification number instead of using your social security number.
Seller’s permission:
In fact, in your gym you can decide to sell your clients weight gainers, machines, proteins, etc., then you will need the seller’s permit which is the wholesale resale license.
You can even think about renting the gym equipment or buying wholesale and retailing in small quantities then this is when you need the seller ID.
What are the gym opening licenses
Actually to know the gym opening license you need, first of all you must choose the structure of the business, whether it works as a sole proprietor, such as a partnership, a corporation or a limited liability company, but you will always need a general business license.
However, keep in mind that you will rarely need a special license for the type of business you plan to open.
Well, special licenses are usually necessary if you are an engineer, architect, lawyer or any other profession or trade.
Insurance policy:
Although I do not have a license, it is an essential requirement, because you need an insurance policy for a gym because they are places where accidents or injuries are common, therefore when buying an insurance policy it is the best way to protect your business.
You can buy general liability insurance, workers’ compensation insurance if you hire employees, and home insurance to protect business assets against a lawsuit.
Workers’ compensation insurance covers an accident or injury to employees while they are working.
You can also opt for a surety bond or surety bond to promote the relationship between your business and the client, since in a case of demand, the state will use the bond to pay legal expenses.
Brand and intellectual property protection:
When considering opening your own gym, you should think about presenting the protection of intellectual property, since it is not only limited to protecting the company logo but also other documents and of course it protects the name of the company.
In the event that you submit this application, you must also register the trademark and the final approval of the trademark will be subject to the review of the attorneys as required by the USPTO (the United States Patent and Trademark Office).
In turn, you must comply with some state requirements that are based on the product sold, for example …
The tax register:
If the state in which your gym operates has a state income tax, you will need to register and obtain the employer identification number from the state Department of Revenue or Department of the Treasury.
The registration of the trade name:
Keep in mind that if the business only operates in the local community it may be sufficient to register the business name with the state.
Employer registration:
If you hire employees, you may have to make contributions to unemployment insurance.
Registration for local, state and federal taxes: All businesses are required to register for the payment of taxes.
At the federal level, every gym must be registered for the payment of federal tax with the EIN.
At the local and state level it will depend on the location of the gym, as the laws vary according to the local and state tax law, therefore you should consult with state and local agencies and you will obtain certain information about the tax registry.