# Insurance and Business License



## Jeff1 (Oct 3, 2004)

I am trying to start teaching at a gym or a dance school and I wanted to have everything set to go before I went around asking places if they were interested in having a karate program. I was wondering how much insurance should be enough to start out with and if I should go ahead and get a business license before checking out some places. Thanks!


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## lvwhitebir (Oct 4, 2004)

It all depends on you area and how you go about teaching.  I'll assume you're in the US.

I wouldn't worry about insurance until you have students, you can pretty much get it within a week or so.  Most of the insurance I've seen is pretty fixed on how much you get and for what, although there are some minor provisions about sparring, outside activities, etc.

If you're teaching *for* someone else, as an instructor in their style for instance, you should be able to fit under their insurance and have them pay you as an employee so you wouldn't need a business license.  They collect the money and provide the student's equipment.

If you're teaching at someone else's location, say as a contractor, where people pay you directly and you pay rent, you'll need to get a business license and file a legal business structure (such as a LLC).  This you should probably start quickly as it may take a little while to whip up and should require a lawyer.  Be sure you want to take this step because filing the LLC documentation isn't cheap if you go through a lawyer (a couple hundred dollars).

WhiteBirch


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