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.

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