While a formal business entity for your drone business isn’t explicitly required, you may want to form an LLC or Corporation as a way to shield yourself and your family from financial and civil liabilities. After all, you are bringing a flying lawnmower up into the air. Who knows what might happen?
Forming a business entity requires additional paperwork and filing fees, but in our professional opinion, it is well worth it for the kind of peace of mind having that protection brings.
You can form an LLC or Corporation on your own by contacting your Secretary of State, but most people choose to get a little help from an attorney. If you haven’t watched it yet, check out lesson 9.7 [Interview] Ask a Drone Lawyer: Key Legal Considerations for Starting a Drone Business.
Once you’ve chosen a legal structure for your drone business, you’ll need to ‘register’ your business. This would begin at the state level — consult your state’s Secretary of State website for instructions. Odds are you’ll be able to file online, and the filing fees are typically less than $100. And depending on where you operate, you might also need to register your business with the city or county.
Aside from liability protection, forming a business entity can legitimize your efforts with potential clients and amongst your competition. It might also be required for certain types of film permits or authorizations down the road.
For more information about starting a drone business, check out our guide:
6 Key Questions to Ask Yourself When Starting a Drone Business