Starting a hospitality business, whether it is a small bed and breakfast, a hotel/motel, an event planning business, or even a tourism company can be easy with proper planing and knowledge of the requirements. One of the best things about the hospitality industry is that it offers many opportunities for growth and employment, but a business in this industry can at times be difficult to maintain if you don't take the necessary steps to success.
Choosing an Entity
As with any other kind of business, choosing the right entity for the needs of your business is the most important first step you can take. You will want to be sure that your personal assets are protected in case of any unforeseen circumstances. While providing people with hotel accommodations for instance, if a customer were to fall or become injured on your property due to an accident, you could be sued. If you own an event planning company, you may be required to rent expensive equipment or supplies, and if something were to happen to that equipment, you could be held personally responsible for the debts incurred. This is why it is so important to protect your personal assets by filing a corporation or LLC.
