Reading time: 3 minutes

Setting up a ballet, contemporary dance or dance company can be demanding. On top of teaching classes, the legal and business requirements of setting up a new business can be stressful. The number of theatre and dance events have increased in line with industry growth in the past five years, driving the number of sole traders, partnerships and companies entering the industry. If you are looking to opening up a dance company, you should consider which business structure you will choose. A business structure will have a significant impact on how your business operates. Consequently, before deciding upon which structure you will use for your dance studio, you should weigh up all advantages and disadvantages of each structure. Also, you may wish to seek legal advice to ensure you are advised of the finer details of each structure before you embark on your business venture.

Setting up a Dance Company

Setting up a new dance company can be expensive. Keeping high standards of patron
comfort, technical facilities and general maintenance is important for venues to
ensure repeat custom. In addition to these ongoing costs, there are costs involved in setting up your company. If you decide to adopt a company business structure for your dance teaching business, the first thing that will affect you are the legal requirements for registering a business name and an ABN. The separation of financial liability from your personal assets will allow you to expand more aggressively and with less personal risk than a sole trader arrangement.

The main benefit of a company business structure is that it is an individual legal entity. This structure means that all financial debt accrued by a company will remain with the company. As a result, as a director of a company you will be able to make decisions purely based on business instinct, avoiding conflict between your personal and work life.

Franchising a Dancing Studio

An alternative option available to your dance teaching business is that of a franchise. This structure will allow you to enter the market quickly as you will be able to rely on an already established brand with experienced owners. However, a franchise will require you to sacrifice any grand thoughts of a nationwide dance teacher business with your name on it.

The main benefit of a franchise business is that you can rely on the goodwill of an already established business to gain customers. Therefore, it will mean that people will trust your product without you having to do anything, which can be a significant advantage in a competitive market for dance teachers. However, the sacrifice will be that the name of your business will not be your own. Consequently, should you wish to leave the franchise and adopt another business structure you will have to start from scratch and potentially move your place of business so that it is not in competition with the franchise.

Key Takeaways

If you are looking to start your dance studio, you should carefully consider the business structure most suited to you. Changes in operating costs or government funding can significantly affect the operation of performing arts venues. You should also consider employment arrangement for your contractors as well as any leasing contracts for use of commercial spaces. Our business structuring lawyers can assist you with setting up your dance studio.


Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards