Hello, fellow trainers!
I am a newly certified by ACE personal trainer, and I am considering training clients in their homes. I do understand the necessity of having a prof. liability insurance. However, as far as business registration-my understanding was that I would have to register my business only if I either incorporate it or create LLC. My intention is, though, to do it as a free-lance trainer (at the beginning, anyway), and I thought that I wouldn’t need to register it in this event.
Is my assumption wrong?
Thanks in advance! I will appreciate all advice I can get
Thank you, guys, for taking the time to respond!
The reason I am thinking about freelancing first is that, I believe, that for me, initially it would make more sense financially, until the business picks up and grows. I intend on doing it gradually. Having said that, I absolutely agree that, ultimately- an LLC structure would be a better choice.
I truly appreciate all of you sharing your thoughts and suggestions. It means a lot!!
All great ideas. I agree that forming some sort of entity (LLC, Corporation, etc.) is best to cover yourself in terms of tax liability. Speak with other business owners and get recommendations for a few tax attorneys and accountants, and meet with them to see who’s a good fit. Forming a business entity will make you stand out from the crowd and make you look more professional. Plus, it helps our entire industry to be taken seriously and legitimizes our profession, which is important. When you form the business, be sure you cancel your individual liability insurance policy and get a new one in the name of the business. That will protect you as an employee of the business, the business itself, and also anyone who works for your business should you wishes to expand in the future. An individual policy will not cover the business should you be sued. For example, if you have clients sign a waiver naming the business but you only have an individual policy, your business assets are at risk. If the business purchases equipment, you’ll need a separate policy to protect it. Also consider increasing your personal insurance coverage, particularly if you start training groups, or if you have a lot of assets (home, etc.). If someone sues you for more than your professional policy limit, your personal assets may at risk. I’m not trying to scare you, but I have a family member in the insurance industry, and these are things I wasn’t aware of when I started out. It may seem like a lot of trouble to start a business, but its well worth it, and considering these kinds of things up front will protect you and save you time and money later. Best of luck to you!