This is the step most new operators underinvest in, and it is the one that ends businesses.
Business registration: Register an LLC in your state to separate your personal assets from the business. This is inexpensive ($50–$300 depending on your state) and essential for a business where injury is a real liability.
General liability insurance: Non-negotiable. A bounce house injury claim can reach six figures, and most venues, parks, schools, and churches will not let you set up without proof of at least $1 million per occurrence. Expect $800–$1,500/year for a small operation. Inflatable-specific policies exist — use a broker who understands the party rental industry.
Safety certification and procedures: Many states and some counties require inflatable operators to follow ASTM F2374 setup and anchoring standards. Build a documented setup checklist: stake every anchor point, never operate above the manufacturer's wind rating (typically 15–25 mph), and require a signed rental agreement with a weather and supervision clause on every booking.
Weather policy: Wind is the number-one cause of bounce house accidents. Write a clear rain-and-wind policy into your rental agreement and enforce it. A reschedule credit costs you nothing; an untethered unit in a gust can cost you everything.