The Hidden Legality Issues Surrounding Paint Parties
I know, as creatives this is not something that we like dealing with. However, this is something that I've had to deal with like it or not. It happened when I inquired to host paint parties at a military base. It seemed like a good deal at the time. I didn't need to do the legwork for the class because they would take care of it. I didn't need a minimum to sign up, they would make sure it was covered too and I would be paid the same flat rate. I was set-up to do classes quarterly with them, which wasn't a lot but it was a good start. How could I refuse? Well, the thing was I had to sign-up to get a direct deposit with them and this took time. I also had to sign lots of documents and lastly, I had to get Business Insurance. I was to be paid $300/class for four classes a year. Business insurance was to cost me $300/year. Without considering other costs, I was to make a profit of $900. This seemed pretty good for me so I went through the lengthy process to sign up. We had one class of nine adults with one advanced child and it went pretty well.
However, after the class was over things slowly fell apart. I messaged my contact but didn't hear back for a while. We lived in the same small town area. So eventually we spoke again and it turns out the director of the MWR was being changed out so her new boss would need to approve it. We never did have another class. Luckily, I was paid for the first one and was able to get my money back. Having liability business insurance is also a good idea if you will be painting in your home or yard. If at a separate location, their place of business should cover any injuries or anything that gets broken/lost of your own (don't quote me) as long as you sign a contract. However, in your own home or their home it is an entirely different story. This is only one example of why you may need legal help as the owner of a paint party business.
Besides obtaining a business license, another example is needing a lawyer in the rare case that a student may sue. This hasn't happened to me personally but I have had a student and fellow teacher in a crafting class exclaim that she was upset because she was pregnant and the wallpaper glue we were using had this warning on it:
Luckily, I don't live in California but also, it could still be used against me. There are more than 90 chemicals on this list created in 1986. Now, there is a new label:
Even if you are not in California (where it is still legal to use these chemicals anyway), it is best to lawyer-up, get liability insurance or at least be uber careful about these chemicals. ( visit p65warnings.ca.gov for more info.)
Last but surely not least, you may need to register yourself as a business in your state/province/area. Depending on your business name and how much money you make, you will probably also need to report earnings and expenses on your taxes. The SBA has a guide here: https://www.sba.gov/business-guide/launch-your-business/register-your-business I would also think about writing up a legally binding contract with other businesses that you may deal with when starting up. Especially those that are well established as they know what they are doing in this regard and likely have lawyers of their own.
If you have any other legality questions, feel free to email me.