Starting a successful bounce house business takes more than knowing how to give a good haircut. One important aspect of successfully starting a business is researching and applying for the licenses and permits that are needed to operate legally.
The question, “what business license do I need to start my business” is a common one, but in reality, a business will often need multiple licenses, permits, and registrations from federal, state, and local agencies.
Related: Guide to starting a bounce house business
To not miss any important licenses and permits, we recommend also checking with your local Chamber of Commerce, economic development agency, or use a business license service like Incfile or LegalZoom.
What Licenses Do You Need to Start a Bounce House Business?
State Licensing
Only a handful of states require licensing for bounce house businesses. Here are examples of a few states with licensing for bounce house business:
Illinois doesn’t require licensing, however, there are regulations for bounce house businesses. The Department of Labor requires equipment to be approved for operation by an inspector each year and proof of insurance. Additionally, owners must provide documentation that they have conducted a criminal history records check and sex offender registry check for all operators, attendants, and assistants, provide documentation that they received proper training, and have a substance abuse policy in place, including random drug testing.
In New York, amusement devices must submit an Application for Amusement Device to operate a bounce house business in the state. Equipment is required to be inspected, and proof of liability insurance must be provided.
The Virginia Department of Housing and Community Development inflatable amusement devices are regulated under state law 13 VAC 5-31-200. A permit is required, as is proof of liability insurance and obtaining a certificate of inspection.
Local Licensing
In addition to possible state licensing, there are some city or county licenses that may be required as well. Local licensing is more often required if the equipment is being used on public property.
For instance, inflatables used in a city-owned park in Arizona must obtain a special use permit. Most city parks do not allow the use of water inflatables, water slides, or dunk tanks.
In East Bay, California, an Inflatable Play Equipment Permit is required for equipment used at City parks.
Broward County, Florida, requires a Vendor Application to set up an inflatable at a County park area or facility.
Even if state or local licensing doesn’t apply to your bounce house business, there will likely be general licensing requirements to get started. Here are a few of the common licenses and permits that a bounce house business may need:
General Business License or Permit
Depending on where the business is located, a general business license or permit may be required. A few states require a business license; however, they are more commonly found at the city level.
Learn more: Business license requirements by state
Business Name Registration
While not necessarily a business license, it’s worth noting that in order to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of business entity.
For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).
Learn: How to register a DBA
Corporations and LLCs register are a little easier in that their name is registered when forming the entity.
Related: What is the difference between a sole proprietorship, partnership, Corporation, or LLC?
Federal Employer Identification Number
The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).
Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.
Sole proprietors and single-owner LLCs without employees can instead use the owner’s social security number.
Learn: How to get an EIN
Sales Tax Permit or Business Tax Number
In order to sell products and/or offer certain services, a state sales tax permit (business tax number or tax ID number) may be needed. This permit creates an account number with the state’s Department of Revenue or a similarly named state taxing agency.
Additionally, hiring employees will also likely require a state tax number.
Learn: How to get a sales tax permit
Certificate of Occupancy
In most communities, if the business is being operated from a commercial building, a Certificate of Occupancy (CO) will be needed. This certificate is typically obtained from the city, but sometimes from the county, and allows a business to occupy and operate from a building provided the building complies with zoning regulations, building codes, and any other local requirements.
A Certificate of Occupancy (or home occupation permit) is also often required for a home-based business.
Before starting your bounce house business, be sure to check with the local zoning department to ensure the business can legally operate out of the chosen location.