The number of theatres and improv festivals has exploded in the last ten years. I’m sure Pam Victor has some actual statistics on this (and listen to her podcast if you don’t already), but the opportunities have expanded. Logically it follows that most of these entities that have opened a bank account or incorporated in some way are what could reasonably be called new businesses.
I’ve talked to a lot of people in these years about those early days starting a business. One common story I hear is that it’s a little daunting when filling out that paperwork to answer all the questions about “what your business is going to do” Are we just a theatre? Will we also host a festival? What about traveling? What about a training center? It’s an exciting time considering the possibilities of what will define “what you do” in the year’s to come. But it also feels like you’re potentially locking yourself into a single course. That’s not a comfortable place for improvisors.
Stefani Joanne Angelina Germanotta
(dba Lady Gaga)
Even the name. Most improv companies choose a name that will not be connected to just one thing. Many others are restructures of one members existing defunct artistic company that did something else. Many of the improv companies you know and love are known legally by names you’ve never heard of (Fun Fact: The Phoenix Improv Festival became a legal business in 2004 under the name Carefree Write Productions Inc.)
That’s fine and well at first. No one cares how you do your banking. But pretty soon you’re going to have to deal with people and businesses using your legal name. If your theatre starts doing workshops for schools or companies, they’ll request a W9 Form (a very non-scary IRS form). Grants from companies or organizations as well as public fundraising sites often require your legal name. (You will have to send out that slightly awkward email blast saying “Hey we’re having a fundraiser. Go to this site look for NAME YOU NEVER HEARD OF. That’s us, really!) People will send in donations to your theatre or festival and you won’t be able to cash them. It will start to be a problem.
There is a perception out there that creating a DBA is as daunting a task as creating their business in the first place. “Oh, I can’t go through that again”. I promise you, the opposite is true. Filing the paperwork to add a second or third legal name for your company involves filling out a four minute form and bringing a check for between $50 and $100 bucks.
If you’re an improv festival, particularly if you’re running under the umbrella of some other organization. I strongly encourage you to get the name of your festival legally added to your Tax ID number. It’s one trip to the Secretary of State’s Office and it will save you a lot of work down the road. It will feel good to pay your instructors with a check with your name at the top.
Any thing else I should do while I’m already downtown?
Well, yeah. Now that you mention it. File for a trade name for your theatre or festival name and file for a trademark on your logos. These also cost around $70 in most places (for a state level trademark. Federal level ones are several thousand dollars and you don’t need one). State level trademarks aren’t what you think of when you think about the word trademark. You’re not going to be suing anyone for using your name without permission. To be honest, a state level trademark doesn’t really give you any ability to do anything about other people using your name, but what it does do is prevent other companies to force you to change your name. State trademarks are the legal equivalent of calling dibs on the last doughnut.
Think that will never happen to you? It happens all the time. Remember a little company formerly called ImprovOlympic? Sure, that involved an international multi-billion dollar company so a $70 doc wasn’t going to save iO, but it can save your company from the same fate.
Three documents; a DBA, a trade name and a trademark. They will give you a lot of freedom in putting out a name and an image to your community that matches the brand you’re trying to promote and well worth a trip down to the city.
If you’re out of driving distance, you can do these online as well (plus a few bucks for “processing”). You can do them right now, this very minute
File for a DBA
File for a Trade name*
*I wanted to provide a single link, but the Secretary of State’s website for your state will likely have the same info, and likely not charge as much as a commercial website.
Best of luck.
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Currently Bill is an instructor at The Torch Theatre and producer for the Phoenix Improv Festival. He tours teaching and performing across North America. He is doing business as @whbinder
