Licenses, a bit like taxes, are a fact of life, and certainly a fact of gym management life.
For example, playing recorded music in public requires a license and so does having a television playing in your main gym rooms. That’s before you’ve put in a single set of weights or exercise machine.
Then there are the licenses for classes and therapies. A massage therapist will have a license to practice, and so will many other of your instructors and staff. Having these is not only good business practice, it helps instill a sense of trust in your clientele. The right paperwork also permits you to operate your business without fear of legal complications such as lawsuits, that may occur otherwise.
Here we set out what the essential licenses and permits are that you will normally need to start your business and to comply with local business laws. This is a general guide, and we always recommend our clients seek specialist advice about their local area!
Why are licenses and permits essential for starting a gym business?
There are several reasons why licenses and permits are essential for starting a gym or fitness business:
1. Legal requirements
Your business must comply with local, state, and federal regulations. This can help to protect your business from potential legal issues and fines in the future.
2. Public safety
You have to protect the public’s safety, and ensure that your gym meets all relevant safety and building codes.
3. Professional credibility
Having the necessary licenses and permits can help to establish credibility and professionalism for your gym. Customers are more likely to trust a business that has taken the time and effort to obtain the necessary approvals.
4. Insurance requirements
Many insurance companies will require you to have the appropriate licenses and permits before they provide coverage for your business.
Key licenses and permits required for a gym business
There are multiple types of legal permits and licenses to run a business that mainly depends on the local government laws and regulations. The following are some essential ones to have for a gym business owner.
1. Business license
All businesses require a business license. Before opening your doors or selling products or services, you must have a valid business license.
A valid business license allows you to operate as an independent contractor, work for another company, or work for yourself if you are already employed. It also helps protect against liability issues arising from misrepresentation or negligence on the part of employees who operate under this arrangement.
Besides the specific business license, you might also require some additional licenses. For example, in the UK and the USA, you need a license if you use music during the training, a public space surveillance (CCTV) license for using CCTV cameras, permission to collect personal data, etc. There are strict laws about these elements to comply with while running a gym business. Similarly, different states in the US and counties in the UK may also have specific regulations to run a business like a gym.
2. Certificate of occupancy
A Certificate of Occupancy (CO) is a document issued by the building department that confirms that you are allowed to occupy your space. You can use it as proof that you have paid your rent and taxes, but it is not required for all businesses.
In the UK, if your business has an existing certificate, it’s best to get an inspection from the fire marshal before starting construction or remodeling work on site. This will ensure that all necessary permits have been obtained and any applicable inspections performed by local authorities.
If there are no issues with this initial inspection, Authorities can schedule one later down the line. It will depend on how quickly things progress with each phase of construction/renovation work being done at once rather than one at a time over time until the completion date arrives.
Similarly, if you are opening a gym in the USA, you must follow its specific occupancy and building inspection laws.
3. Employer identification number (EIN)
To run a business, the owners must get an employer identification number to stay safe from legal complications. Even if you are not employing any person to work for you, you have to get this number if you are in a partnership or running the business as a corporation.
This is also essential for filing your business’s tax returns. Therefore, you should have one before the tax season to file your returns on time. In the UK, you need to register as an employer before the first payday, irrespective of the nature of your business.
4. Zoning permit
You can get a zoning permit from your city or county government. These permits allow you to open a gym and operate it in the area that requires it. Generally speaking:
- You need a zoning permit if you plan on opening a gym with equipment that requires ventilation.
- You also need a zoning permit if your business has more than 50 employees working at any given time, even if they do not have access to the whole facility.
5. Air quality permit
Without this permit, you may not be able to open your business or use equipment that emits harmful fumes. While it may seem easy to obtain, many people do not realize how much time and money goes into obtaining these permits before they can even begin working as staff members at their chosen gym.
Air Quality Permits are issued by local government agencies and vary depending on where you live and what type of facility you want to run:
- Gymnasiums require separate permits from each state or country where they operate.
- Commercial gyms need only one permit for all states.
Conclusion
Five essential licenses or permits that you’ll probably need to operate a gym or fitness business:
- Business license
- Certificate of occupancy (CO)
- Employer identification number (EIN)
- Zoning permit
- Air quality permit
These are permits that most of our clients have to secure, regardless in the world they are.
We always recommend that they seek specialist advice about what’s needed in their local jurisdiction.