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Can I charge an entry fee for an event I am hosting at my house or a house I have rented from someone for a day?

Can I charge an entry fee for an event I am hosting at my house or a house I have rented from someone for a day?

Or does this make my house a business automatically because of me charging a fee at the door, even tho the people that come are invited using a flyer that is sent out on social media to our followers and then they have to message us for the address and timing.

I'm in Washington DC, if that helps. Thank you!

Business insurance Renting a house or apartment Business
Asked in Washington, DC | May 21, 2018 | 3 answers
Answer
Paul R. Goodman
Paul R. Goodman
Corporate / Incorporation Lawyer in New York, NY
4.5 stars
8 reviews
Rating: 7.6
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View Phone Number (212) 661-6800
View Number (212) 661-6800
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Posted on May 21, 2018 Voted as Most Helpful

Either way, you better make sure you have insurance if you are running a commercial event in your home-- your home owners insurance will not cover a claim. There is more so if you are using someone else's house. I certainly hope you are not thinking of renting a house on Airbnb and then holding an event at the location.

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Richard J Bianco Jr.
Richard J Bianco Jr.
Real Estate Attorney in Washington, DC
5 stars
7 reviews
Rating: 4.2
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View Phone Number (202) 461-2400
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Posted on May 25, 2018

As the two previous lawyers have stated, this is a terrible, terrible idea. Don’t do it.

If you are interested in throwing parties as a way to make money, you are in DC—by all means, do it.

There are no shortage of actual party venues for events that have insurance and are perfectly legal. Some have liquor licenses, some you need to bring in someone with a caterer’s license, but, in many cases you can get a 1 day liquor license (for about $300) and do your thing.

If you have the guest list to pull it off, go for it.

On the other hand If you want to serve liquor to a bunch of young people in somebody’s rented condo-don’t. There are no circumstances under which that ends well and could result in serious, serious legal trouble.

If you are going to do it, spend some money, get some advice, and do it the right way.

There are lawyers on this forum who represent establishments with liquor licenses and can help you put together an event that is legal. Sure that will cost you more money than a $10 red solo cup at the door kegger but, you probably won’t end up arrested or sued.

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Charles J. Ware
Charles J. Ware
Litigation Lawyer in Columbia, MD
5 stars
25 reviews
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View Phone Number (410) 720-6129
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Posted on May 24, 2018

What you are talking about doing is popular among the younger set in DC, and potentially dangerous. I have been involved as an attorney on a couple of occasions during the past couple of years regarding these so-called "parties." Watch out. P.S. - I concur with fellow counsel.

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