AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
An event planning company rests on three things: a written contract for every client that sets scope, payment schedule, cancellation terms and what happens to deposits; insurance, at least general liability, which venues will often ask to see; and a clear way of holding client deposits apart from your own money until they are earned or passed to vendors. Register the business and, if you rent out decor or sell goods, check whether your state requires a sales tax permit.
Why Nigerian events need their own planning
Nigerian weddings, traditional engagements, naming ceremonies and milestone birthdays in Houston, Atlanta, Maryland and New Jersey are large, often with hundreds of guests, several outfits, live bands, caterers who cook Nigerian food, and family contributions arriving from both the US and Nigeria. That scale is the opportunity. It also means the planner is often holding a lot of other people's money, for months, while dealing with vendors who may not use written contracts. The business is only as safe as its paperwork.
Register and set up properly
- Form a business, usually an LLC, so that a claim from a client or a venue is made against the company. See sole proprietor or LLC.
- Get an EIN and open a business account. A single-member LLC can use your own tax number until it has employees, but the IRS says it needs an EIN once it hires.
- Check local licences with your city or county; the SBA says LLCs and corporations may need county or city licences.
- Check sales tax. In Texas, for example, the Comptroller says you need a sales and use tax permit if you sell or lease tangible personal property or sell taxable services. Renting out chair covers, centrepieces or backdrops is leasing tangible property. Other states have similar rules; see registering for sales tax.
- Register a brand name if you will trade under one; see DBAs in Texas.
The contract: what to put in writing
Use a written agreement for every client, even family friends. Have a lawyer in your state review your template once; after that, adapt it for each event. It should cover:
| Clause | What it should say |
|---|---|
| Scope | Exactly what you will do: full planning, coordination on the day only, decor, vendor booking |
| Fees | Your fee, separate from money you will pass on to vendors |
| Payment schedule | Deposit on signing, instalments with dates, final balance date before the event |
| Deposits | Whether your booking fee is refundable, and when vendor deposits become non-refundable |
| Cancellation and postponement | What the client owes at each stage before the date |
| Changes | How extra guests, extra hours or changes in scope are priced |
| Events outside anyone's control | What happens if the venue closes or travel is disrupted |
| Liability | What you are and are not responsible for, including vendors the client hires directly |
Handling client deposits
Most disputes in event planning are about deposits. Three habits prevent most of them:
- Separate the money. Keep client funds meant for vendors in a separate business account from your own fee income and personal money. It lets you show a client exactly where their money went.
- Pay vendors against invoices. Ask every caterer, DJ, decorator and venue for a written invoice and contract, and pay from the client account only against it.
- Give receipts at every stage. Issue a receipt for every payment in, and share vendor receipts with the client.
Worked example (illustrative)
Example only. Adaeze plans a 300-guest wedding. Her fee is $6,000; vendor costs paid through her are $24,000; total $30,000. Her contract asks for 30% on signing ($9,000), 40% four months before ($12,000) and 30% six weeks before ($9,000), which adds up to $30,000. She treats $1,800 of the first payment, 30% of her fee, as a non-refundable booking fee, and holds the rest of the client money for vendors. When the couple postpone three months out, the contract tells both sides which vendor deposits are already lost and what is refunded.
Insurance
The SBA describes general liability insurance as covering 'bodily injury, property damage, medical expenses' and the cost of defending a lawsuit, and many venues ask planners and vendors for a certificate naming the venue. Professional liability covers 'malpractice, errors, and negligence', which for a planner means a mistake that costs the client money. If you store or transport decor, ask about property and commercial auto cover. Once you have staff, employer duties apply; see hiring your first employee.
Tax on what you earn
Money you collect for vendors and pass on is not your profit, but it still passes through your books, which is another reason to keep it separate. Your profit as a sole proprietor or single-member LLC is taxed on Schedule C, and the IRS charges self-employment tax at 15.3% on net earnings of $400 or more. Keep receipts for every vendor payment so your accountant can match income to costs.
Where Pryme fits
Many Nigerian events are funded partly from Nigeria. A Pryme Business Account holds USD and NGN with local account details, so family can pay in naira and you decide when to convert with Swap, seeing the rate and the fee first. You can generate a regular or a verifiable receipt for each deposit through Pryme's partner VerifyDoc.ai. Outside Nigeria, Pryme's services are provided through regulated partners.
Questions people ask
Do I need a licence to be an event planner in the US?
There is usually no special event planner licence, but you need to register the business, obtain local licences where your city or county requires them and a sales tax permit if you sell or rent out goods.
Should event planning deposits be refundable?
That is for your contract to say. Many planners make a booking fee non-refundable and explain which vendor deposits are lost at each stage. Write it down and have the client sign.
What insurance does an event planner need?
General liability as a minimum, which venues often ask for, and professional liability for mistakes. Add property or auto cover if you store or move equipment.
Can I keep client deposits in my personal account?
It is better not to. A separate business account for client funds makes your records clear and helps if there is ever a dispute.
Sources
- SBA: Get business insurance (modified 28 Aug 2026) · accessed Oct 2026
- SBA: Apply for licenses and permits (modified 28 Aug 2026) · accessed Oct 2026
- Texas Comptroller: Sales and use tax permit (modified 22 Oct 2025) · accessed Oct 2026
- IRS: Single member limited liability companies (reviewed 27 Jul 2026) · accessed Oct 2026
- IRS: Self-employment tax (reviewed 27 Jun 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.