Before starting a wedding planner business, you first have to decide on what the company model or structure will be like. You can choose between sole ownership, general partnerships, and corporations. In this article, we explain each one along with its pros and cons.
Sole Ownership
You have to keep in mind that you are the sole owner of your business. However, that does not mean you can’t have anyone to work for you; it means that you don’t submit to anyone but yourself. Since it is the easiest and least expensive way to start a business, most wedding planners begin with this. There are a few admin issues, filings, and registrations. It can be advantageous to many individuals since they can report their business on their tax returns. One disadvantage of this form of marketing is that you are personally responsible for your company’s debts.
General Partnership
You can be co-owners and have a partnership with another planner, florist, caterer to have a wedding planning business as long as you’re all clear about each other’s responsibilities and equally committed to the company. Everyone included in the partnership will be liable for the debts and obligations whatever the business incurs. Ensure you hire an attorney to draw up a legal agreement if you want to have a partnership, even if it’s your friends or family members. Don’t proceed with doing this if you think something might go wrong.
Corporation
You can start a business, whether you are alone or have partners. Being a corporation will make you look more professional to customers and wedding salespeople. Although there are many rules and costs included in having a corporation, it will protect you from personal liability.