{"id":5309,"date":"2024-09-19T18:07:31","date_gmt":"2024-09-19T23:07:31","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-to-open-a-gym.html"},"modified":"2024-09-20T10:07:00","modified_gmt":"2024-09-20T15:07:00","slug":"how-to-open-a-gym","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-open-a-gym.html","title":{"rendered":"How To Open a Gym"},"content":{"rendered":"\n<section data-testid=\"fl-simple-hero\"  class=\"fl-simple-hero\">\n    <div class=\"fl-simple-hero-container fl-container fl-flex fl-items-center\">\n                <div class=\"fl-simple-hero-title\" data-testid=\"fl-simple-hero-title\">How To Open a Gym<\/div>\n            <\/div>\n<\/section>\n    <div class=\"fl-container\">\n        <div class=\"updated-breadcrumb-list\">\n            <ol>\n                        <li>\n                <a href=\"https:\/\/www.findlaw.com\">FindLaw <\/a>\n                <span class=\"breadcrumb-separator\" aria-hidden=\"true\">\/<\/span>\n            <\/li>\n                                <li aria-current=\"page\">How To Open a Gym<\/li>\n            <\/ol>\n\n        <\/div>\n    <\/div>\n\n\n\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\">\n<figure class=\"wp-block-image fl-no-margin\"><img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/image\/upload\/ability-law\/wp-prod\/content-original-images-woman-holding-dumbbells-in-a-gym.jpg\" alt=\"\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\" fl-section-sidebar  \"><\/div>\n<\/div>\n\n\n\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">How To Open a Gym in Nine Steps<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/natalie-moritz\/\">Natalie Moritz<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a>\n                | Last updated\n        <time>\n                            September 20, 2024\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>Opening a gym requires several steps such as creating a <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_26287171\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"26287171\">business plan<\/span>, naming and deciding on a legal structure for your business, identifying the best location, securing financing for equipment, and obtaining necessary licenses and permits.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<p><b><i>Form your LLC with confidence.\u202f<a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-open-a-gym-in-content\" target=\"_blank\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n\n\n<div class=\"tableOfContent\">\n    <div class=\"table-of-contents\">\n        <span role=\"heading\" aria-level=\"2\" class=\"table-of-contents__title\">9 Steps To Open a Gym<\/span>\n                <ul class=\"table-of-contents__list\">\n                        <li><a href=\"#Type\" title=\"1. Choose The Right Type Of Fitness Business\">1. Choose The Right Type Of Fitness Business<\/a><\/li>\n                        <li><a href=\"#Plan\" title=\"2. Develop Your Business Goals and Make a Business Plan\">2. Develop Your Business Goals and Make a Business Plan<\/a><\/li>\n                        <li><a href=\"#Name\" title=\"3. Choose a Name for Your Gym\">3. Choose a Name for Your Gym<\/a><\/li>\n                        <li><a href=\"#Determine\" title=\"4. Determine Legal Structure For Your Gym\">4. Determine Legal Structure For Your Gym<\/a><\/li>\n                        <li><a href=\"#EIN\" title=\"5. Get an EIN and Open a Business Bank Account\">5. Get an EIN and Open a Business Bank Account<\/a><\/li>\n                        <li><a href=\"#Location\" title=\"6. Find a Location and Secure Licenses and Permits\">6. Find a Location and Secure Licenses and Permits<\/a><\/li>\n                        <li><a href=\"#Insurance\" title=\"7. Get Business Insurance\">7. Get Business Insurance<\/a><\/li>\n                        <li><a href=\"#Marketing\" title=\"8. Develop a Marketing Strategy\">8. Develop a Marketing Strategy<\/a><\/li>\n                        <li><a href=\"#Hire\" title=\"9. Hire Staff\">9. Hire Staff<\/a><\/li>\n                    <\/ul>\n            <\/div>\n<\/div>\n\n\n<p>There are many opportunities for entrepreneurs in the fitness industry. If you&#8217;re passionate about fitness and\u00a0entrepreneurship, opening a gym or fitness business could be great. Follow this step by step guide to start your gym including information on business formation, licensing, and insurance.<\/p>\n<p>There are standard steps business owners must take when\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/first-steps.html\">starting a business<\/a>\u00a0in any industry. There are also considerations specific to gym owners. A solid plan will help you focus on your vision and goals for a thriving fitness business.<\/p>\n<p>This article will guide you to start a fulfilling, successful gym business. If you are interested in personal training, read our\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-start-a-personal-training-business.html\">How to Start a Personal Training Business<\/a>\u00a0article.<\/p>\n\n\n<div class=\"general-step-component\">\n    <div class=\"steps-container\">\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            1\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Type\">Choose The Right Type Of Fitness Business<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>One of your first decisions should be to start from scratch with an independent gym or\u00a0<a title=\"Buying a Franchise: Overview\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/buying-a-franchise-overview.html\">franchise an existing brand<\/a>.<\/p>\n<p>Both options have their advantages and challenges. The choice depends on your preferences, business goals, and resources. While opening an independent gym allows you more freedom and flexibility, it also comes with less support and steeper\u00a0<a title=\"Start-Up Costs: Overview\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/start-up-costs-overview.html\">startup costs<\/a>. You will also have to work harder to\u00a0<a title=\"10 Ways to Market Your Small Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/the-basics-of-marketing-a-small-business.html\">market your gym<\/a>\u00a0since you won&#8217;t have built-in brand recognition.<\/p>\n<p>Conversely,\u00a0<a title=\"What Is a Business Franchise?\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-business-franchise.html\">franchising<\/a> a gym offers more support and lower startup costs but limits your creativity. Some well-known gym and fitness center franchises include:<\/p>\n<ul>\n<li>Orangetheory Fitness (OTF)<\/li>\n<li>Anytime Fitness<\/li>\n<li>Pure Barre<\/li>\n<li>Snap Fitness<\/li>\n<\/ul>\n<p>CrossFit&#8217;s fitness brand doesn&#8217;t franchise but offers an affiliate program for prospective gym owners.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            2\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Plan\">Develop Your Business Goals and Make a Business Plan<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <h3>Develop Your Business Goals<\/h3>\n<p>The goals you set for your gym should guide your efforts for where you want to take your business and how you determine success. Review and adjust your goals as your business grows and the\u00a0<a title=\"Evaluating Your New Small Business Idea\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/evaluating-your-new-small-business-idea.html\">market evolves<\/a>. Considering the factors below can help you make realistic, specific goals:<\/p>\n<ul>\n<li>What amount of earnings do you expect for the first year?<\/li>\n<li>Do you plan to\u00a0<a title=\"Hiring Your First Employee\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/what-to-do-when-you-hire-an-employee-for-the-first-time.html\">hire staff<\/a>?<\/li>\n<li>Are you interested in renting out some of your space?<\/li>\n<li>Do you plan to provide your members wellness services like red light therapy and massages?<\/li>\n<li>What is your membership target for opening day and after one year?<\/li>\n<\/ul>\n<p>These considerations can lead you to make different decisions as you take your\u00a0<a title=\"First Steps to Start a Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/first-steps.html\">first step in opening<\/a>\u00a0a gym. These steps include:<\/p>\n<ul>\n<li>Creating a\u00a0<a title=\"Creating a Business Plan\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/creating-a-business-plan.html\">business plan<\/a><\/li>\n<li>Choosing a name for your fitness business<\/li>\n<li><a title=\" Choosing a Legal Structure\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/choosing-a-legal-structure.html\">Choosing a legal structure<\/a>\u00a0for your business<\/li>\n<li><a title=\"How to Get an EIN Number\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/getting-an-employer-identification-number-ein.html#:~:text=%20You%20are%20required%20to%20obtain%20an%20EIN,not%20need%20an%20EIN.%20A%20sole...%20More%20\">Getting an EIN<\/a>\u00a0(employer identification number)<\/li>\n<li>Getting business\u00a0<a title=\"Business Licenses and Permits\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html\">licenses and permits<\/a><\/li>\n<li>Setting up a\u00a0<a title=\"Marketing and Advertising Laws\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/marketing-and-advertising-laws.html\">marketing strategy<\/a><\/li>\n<li>Getting a business bank account and\u00a0<a title=\"Business Insurance\" href=\"https:\/\/www.findlaw.com\/consumer\/insurance\/business-insurance.html\">insurance<\/a><\/li>\n<li><a title=\"Hiring Process\" href=\"https:\/\/www.findlaw.com\/employment\/hiring-process.html\">Hiring staff<\/a><\/li>\n<\/ul>\n<h3>Make a Business Plan<\/h3>\n<p>It helps to jot your ideas down as you figure out how to open and sustain your business. As your ideas take shape, you can create a formal\u00a0<a title=\"The Benefits of a Good Business Plan\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/before-you-start-your-business-try-starting-a-business-plan.html\">business plan<\/a>.<\/p>\n<p>A\u00a0<a title=\"Business Plan Overview\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-plan-overview.html\">business plan<\/a>\u00a0is an essential tool for many reasons. It helps you put together a financial strategy for your business. It can also come in handy when you approach others to discuss your goals.<\/p>\n<p>For example, if you need to approach investors about funding, you need a\u00a0<a title=\"What Is a Business Plan?\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-business-plan-.html\">business plan<\/a>\u00a0they can review. Many new business owners need loans or other\u00a0<a title=\"Getting a Loan for a Small Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/getting-a-loan-for-a-small-business.html\">sources of financing<\/a>, and a business plan can help others understand your business model and potential for success.<\/p>\n<p>Your business plan should cover the following topics:<\/p>\n<ul>\n<li><a title=\"Choosing Your Business Name\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/choosing-your-business-name.html\">Name of your business<\/a><\/li>\n<li><a title=\"Sample Estimate of Start-Up Costs\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sample-estimate-of-start-up-costs.html\">Costs<\/a>\u00a0of gym equipment and supplies<\/li>\n<li>Pricing for gym memberships and services<\/li>\n<li>Location for your fitness center<\/li>\n<li>Operating costs<\/li>\n<li><a title=\"Business Structures: Which One is Best for Your Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/business-structures-which-one-is-best-for-your-business.html\">Legal structure<\/a>\u00a0of your business entity<\/li>\n<li>Names of other owners (if any)<\/li>\n<li>Market research (<a title=\"How To Determine the Ideal Target Audience for a Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-determine-the-ideal-target-audience-for-a-business.html\">target market and demographics<\/a>)<\/li>\n<\/ul>\n<h3>Do Market Research<\/h3>\n<p>Your\u00a0<a title=\"Conducting Primary Market Research for Your Small Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/how-to-conduct-primary-market-research-for-your-small-business.html\">market research<\/a>\u00a0should inform the type of fitness business you open. Thorough research will help you identify market trends and the demand for a particular type of fitness business in your area. Find your niche and effectively meet the needs of your\u00a0<a title=\"How To Determine the Ideal Target Audience for a Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-determine-the-ideal-target-audience-for-a-business.html\">target audience<\/a>. Consider the following questions:<\/p>\n<ul>\n<li>Could your area support a boutique-style fitness studio, like spin, yoga, or Pilates?<\/li>\n<li>Will you offer personal training sessions, group classes, or just the basics like cardio equipment and free weights?<\/li>\n<li>How much is your target market willing and able to spend on a gym membership?<\/li>\n<li>Will your business function as a basic gym or more like a health club?<\/li>\n<li>Will your gym serve a particular demographic, like women or seniors?<\/li>\n<\/ul>\n<h3>Consider Startup Costs<\/h3>\n<p>It is crucial to include an estimate of\u00a0<a title=\"Start-Up Costs: Overview\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/start-up-costs-overview.html\">startup costs<\/a>. Startup costs could consist of:<\/p>\n<ul>\n<li>Buying used or new fitness equipment<\/li>\n<li><a title=\"Fair Advertising FAQ: A Guide for Small Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/fair-advertising-faq-a-guide-for-small-business.html\">Advertising<\/a>\u00a0and marketing<\/li>\n<li>Forming the type of\u00a0<a title=\"Types of Business Structures\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/types-of-business-structures.html\">business structure<\/a>\u00a0you choose<\/li>\n<li>Future maintenance or repairs<\/li>\n<li>Renting or buying a space<\/li>\n<li>Insurance policies<\/li>\n<\/ul>\n<p>Consider extra safety and maintenance costs if you start with treadmills, weights, or other types of gym equipment. Ensure any used equipment is in good condition before buying.<\/p>\n<p>You&#8217;ll likely need to take out a business loan or\u00a0<a title=\"How to Start a Business With No Money\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/how-to-start-a-business-with-no-money.html\">secure other financing<\/a>\u00a0to cover these costs. Check with the\u00a0<a title=\"Small Business Administration\" href=\"https:\/\/www.sba.gov\/funding-programs\" target=\"_blank\" rel=\"noopener\">Small Business Administration<\/a>\u00a0(SBA) or your local\u00a0<a title=\"State Resources: Starting a Business\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-resources-starting-a-business.html\">Small Business Development Center<\/a>\u00a0to see if you qualify for any small business loans or grants.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            3\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Name\">Choose a Name for Your Gym<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Picking a name for your business is fun but can also be tricky. There are several things to consider when&nbsp;choosing a business name:<\/p>\n<ul>\n<li>Is the name unique and well-suited to your industry?<\/li>\n<li>Will your target customer base find the name appealing?<\/li>\n<li>Is the name you want already in use by another company?<\/li>\n<\/ul>\n<p>Conduct a name search to address the question of&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-your-own-business-business-name-availability.html\" title=\"How To Check if a Business Name Is Still Available\">business name availability<\/a>. You should also check state business records to determine if another business in your state already uses the name.<\/p>\n<p>You can also check the <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115292\/26746?subId1=how-to-open-a-gym&#038;auto-aff-dba\" class=\"diy-biz-affiliate\" rel=\"sponsored noopener\" data-cta=\"Biz Auto LZ - LATL Txt\" data-cta-url=\"legalzoom.com\" target=\"_blank\">fictitious name<\/a> database to see if any&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-dba-.html\" title=\"What Is a DBA?\">DBA names<\/a>&nbsp;match the name you want to use. Finally, check out the trademark database. This is vital because&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/how-to-search-for-trademarks.html\" title=\"Avoiding Accidental Infringement: A Guide To Searching for Trademarks\">you do not want to choose a trademarked name<\/a>. You can face legal penalties if you attempt to use a name someone else has already trademarked.<\/p>\n<p>You may want to use a fictitious business name for your gym. A <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115292\/26746?subId1=how-to-open-a-gym&#038;auto-aff-dba\" class=\"diy-biz-affiliate\" rel=\"sponsored noopener\" data-cta=\"Biz Auto LZ - LATL Txt\" data-cta-url=\"legalzoom.com\" target=\"_blank\">fictitious name<\/a> (or trade name) is a name other than the legal business name you can use for business activities. If you want to use an assumed name, you must go through&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/registering-the-name-of-your-business.html\" title=\"How to Register a Business Name\">registering a DBA name<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            4\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Determine\">Determine Legal Structure For Your Gym<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Consider three common types of legal structures for your gym:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/sole-proprietorships.html\" title=\"Sole Proprietorships\">Sole proprietorship<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/llcs.html\" title=\"LLCs\">Limited liability company (LLC)<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/corporations.html\" title=\"Corporations\">Corporation<\/a><\/li>\n<\/ul>\n<p>There are some key differences between these legal structures.<\/p>\n<p>A&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/starting-a-sole-proprietorship-faq.html\" title=\"Starting a Sole Proprietorship FAQ\">sole proprietorship<\/a>&nbsp;is the least complicated business structure to form. It is also the cheapest to get off the ground.<\/p>\n<p>To create an&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/forming-an-llc.html\" title=\"Forming an LLC\">LLC<\/a>&nbsp;or&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/how-to-incorporate-a-business.html\" title=\"How To Incorporate a Business\">corporation<\/a>, you must file paperwork with the Secretary of State or equivalent agency. A sole proprietor doesn&#8217;t have to file paperwork with the state or pay the filing fee. So, why would one choose to have an LLC or corporation?<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/sole-proprietorship-advantages-and-disadvantages.html\" title=\"Sole Proprietorship Advantages and Disadvantages\">Sole proprietors do not have liability protection<\/a>. Owners of an <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-open-a-gym&#038;auto-aff-llc\" class=\"diy-biz-affiliate\" rel=\"sponsored noopener\" data-cta=\"Biz Auto LZ - LATL Txt\" data-cta-url=\"legalzoom.com\" target=\"_blank\">LLC<\/a> or corporation have&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/business-liability.html\" title=\"Business Liability\">limited liability<\/a>, which protects their assets if someone sues the business.<\/p>\n<p>There are also&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/small-business-tax-information-faq.html\" title=\"Small Business Tax Information FAQ\">tax implications<\/a>&nbsp;to choosing a legal structure for your business. Business owners&#8217; tax treatment depends partly on their legal entity type and selected&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/taxation-and-accounting-terms.html\" title=\"Taxation and Accounting Terms\">tax<\/a>&nbsp;status.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            5\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"EIN\">Get an EIN and Open Business Bank Account<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <h3>Get an Employer Identification Number (EIN)<\/h3>\n<p>The\u00a0<a href=\"https:\/\/www.irs.gov\/\" title=\"Internal Revenue Service\" target=\"_blank\" rel=\"noopener\">Internal Revenue Service<\/a>\u00a0(IRS) gives employer identification numbers (EINs) to businesses to identify them for tax purposes. In most cases, business owners must have an EIN.<\/p>\n<p>Getting\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/getting-an-employer-identification-number-ein.html\" title=\"How to Get an EIN Number\">an EIN<\/a>\u00a0is simple. Applying online is the quickest way. You can complete the application on the\u00a0<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\" title=\" IRS: Apply for an Employer Identification Number (EIN) online\" target=\"_blank\" rel=\"noopener\">IRS website<\/a>\u00a0and get your EIN. Never pay any online service to secure your EIN; the IRS issues them for free.<\/p>\n<h3>Open a Business Bank Account<\/h3>\n<p>It helps to have a separate account for your business and personal funds, no matter which type of business structure you choose. Keeping your business and personal funds separate is important if you form an LLC or corporation.<\/p>\n<p>Limited liability is a benefit of an\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/corporation-versus-llc.html\" title=\"Corporation vs. LLC: What Is Best for Your New Business?\">LLC or corporation<\/a>. But, if you do not separate your business and personal funds, your assets could be at risk in a lawsuit.<\/p>\n<p>Consider opening a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/the-basics-of-accounting-for-small-businesses.html\" title=\"The Basics of Accounting for Small Businesses\">business bank account<\/a>\u00a0and getting a credit card for your business expenses. Avoid commingling of funds as your business grows.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            6\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Location\">Find a Location and Secure Licenses and Permits<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <h2>Find a Location\u00a0<\/h2>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/choosing-a-business-location-checklist.html\" title=\"Choosing a Business Location Checklist\">Finding the right location<\/a>\u00a0for your gym is crucial. You&#8217;ll need to factor in several variables, including:<\/p>\n<ul>\n<li>How much of your budget you can spend on commercial leasing<\/li>\n<li>Proximity to your target market<\/li>\n<li>Future plans and scalability<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-zoning.html\" title=\"Commercial Zoning\">Zoning ordinances<\/a>\u00a0and land use regulations<\/li>\n<\/ul>\n<p>Your gym may also need a particular space layout. Ensure your commercial space is large enough (between 850 and 8,000 square feet, depending on your type of gym) and has the proper infrastructure.<\/p>\n<h3>Secure Licenses and Permits<\/h3>\n<p>Local authorities require that business owners secure the proper business\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/licenses-and-permits-overview.html\" title=\"Licenses and Permits: Overview\">licenses and permits<\/a>\u00a0to do business in the area. Attempting to do business without the necessary licenses or permits could result in fines or other penalties.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            7\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Insurance\">Get Business Insurance<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>You can also protect yourself by\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-business-insurance-.html?fli=latl_biz_howto:diy_biz_ins:txt\">getting business insurance<\/a>. If someone suffers a loss in or on your property, you want coverage from an\u00a0insurance policy. Also, consider having waivers or putting a clause in your membership agreements to protect you if a member\u00a0<a href=\"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/personal-injury-law-the-basics.html\" title=\"What Is a Personal Injury Lawsuit?\">gets injured at your gym<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            8\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Marketing\">Develop a Marketing Strategy<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>As a new business owner, knowing your target market and how to reach this customer base is essential. Word of mouth goes a long way, but you should also develop a creative marketing strategy.<\/p>\n<p>There are several ways you can\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/essential-advertising-rules-for-your-businesses.html\" title=\"Essential Advertising Rules for Your Businesses\">advertise your business<\/a>:<\/p>\n<ul>\n<li>Advertising in newspapers and regional publications<\/li>\n<li>Traditional radio ads or podcast sponsorships<\/li>\n<li>Signage<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/build-a-business-website.html\" title=\"Make a Website for Your Business\">Building a website<\/a>\u00a0and other digital strategies<\/li>\n<li>Attending community events and local partnerships<\/li>\n<li>Contacting local news outlets about your new business, generating publicity and press coverage<\/li>\n<\/ul>\n<p>Making room for merchandise and other promotional items in your budget may also attract new members.<\/p>\n<p>Don&#8217;t forget about social media. Use Instagram, TikTok, and other platforms to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/the-basics-of-marketing-a-small-business.html\" title=\"Ten Ways to Market Your Small Business\">market your brand<\/a>\u00a0and show potential customers how you can help them reach their health and fitness goals. Connect with fitness influencers (or &quot;fitfluencers&quot;) to discuss your brand on their channels. For example, you could offer a free month of membership in exchange for a recommendation for your gym.<\/p>\n<p>The fitness industry is competitive and should think about retention rates early. Although you&#8217;re focused on attracting new gym members now, you&#8217;ll need a strong retention strategy to keep them.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            9\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Hire\">Hire Staff<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>You may need to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/frequently-asked-questions-regarding-hiring-laws.html\" title=\"Hiring Laws: Frequently Asked Questions\">hire employees<\/a>\u00a0to help you keep your business running.<\/p>\n<p>You may want personal trainers who work one-on-one with members. Your business may also offer classes led by group fitness instructors. If you do this, hire fitness professionals with the proper industry-recognized certifications.<\/p>\n<p>Depending on the needs of your business, you may also need front desk staff and custodians.<\/p>\n<p>You will likely need\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/workers-compensation.html\" title=\"Workers&#039; Compensation\">worker&#8217;s compensation insurance<\/a>\u00a0if you have employees. This type of insurance may kick in if an employee suffers a work-related injury.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<h2>Need Help Opening Your Gym? Talk to a Business Lawyer<\/h2>\n<p>Starting any small business is hard work. An attorney can help you navigate the steps of opening your gym business, answer any questions, and help you avoid future legal problems. <a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">Contact a business lawyer<\/a>\u00a0in your area today.<\/p>\n<p>Or you can let our\u00a0<a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-open-a-gym-custom-content\" target=\"_blank\">trusted partner LegalZoom<\/a>\u00a0handle your business formation filing for $99 plus filing fees.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n         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               <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--understandable\"\n                        >Easy to understand<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--solved-problem\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Solved my problem\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n  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                       class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\" fl-section-sidebar  \"><div class=\"generalCard\">\n            <div class=\"disclaimer--newLegalZoom general-card--newLegalZoom__disclaimer fl-text-sm\">\n            <p>FindLaw will earn a commission if you purchase business formation products through these affiliate links.<\/p>\n        <\/div>\n        <div class=\"general-card general-card--newLegalZoom\">\n        <div class=\"general-card__header\">\n            <div class=\"general-card__header-image-container\">\n                <img decoding=\"async\" loading=\"lazy\" class=\"general-card__header-image--newLegalZoomText\"\n                     src=\"\/wp-content\/themes\/ability-law\/resources\/images\/legal-zoom\/legal_zoom_text.png\"\n                     alt=\"\">\n                <img decoding=\"async\" loading=\"lazy\" class=\"general-card__header-image--newLegalZoom\"\n                     src=\"\/wp-content\/themes\/ability-law\/resources\/images\/legal-zoom\/legal_zoom.png\"\n                     alt=\"\">\n            <\/div>\n            <span class=\"general-card__header-title fl-text\"><p>Meet FindLaw&#8217;s <b>trusted partner LegalZoom<\/b>, an industry leader in online business formations<\/p>\n<\/span>\n        <\/div>\n        <div class=\"general-card__body\">\n            <div class=\"text section\">\n                <div class=\"cmp-text\">\n                    <h2 class=\"general-card__h2--newLegalZoom fl-h3-landing\">Let&#8217;s start your free LLC!<\/h2>\n                    <div>\n                        <\/p>\n<p>Join the millions who launched their businesses with LegalZoom.<\/p>\n<p><b>LLC plans 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