Starting a Tutoring Business

If you are thinking about starting a tutoring business, there are many things you will need to do before you begin. Below are just a few of the factors you should consider regardless of whether you will be working independently or plan to hire employees to work for you.


Permits/Licenses

Be sure to obtain all of the required permits and licenses that are necessary to make your business legal. These may be required even if you plan to work independently from your home. Check the requirements for your local area to ensure you don’t incur any fines/penalties for not complying with local business regulations.


Finances

Although not a requirement if you are working independently, keeping your business and personal finances separate is a good idea when starting a tutoring business. It is also important to keep detailed records of your business expenses and profits for tax purposes. Whether you use software designed specifically for that reason or simply use a spreadsheet to track the money that comes in and goes out, maintaining detailed records is critical to keeping your business running smoothly and ensuring you pay the appropriate amount of taxes.


Taxes

When you work for yourself, there is no employer to withhold a certain amount of money from every paycheck for taxes. If you are starting a tutoring business, you will be responsible for reporting your income to the IRS and paying the appropriate amount of taxes. It’s also important that you file your tax returns on time to avoid late fees and other penalties.


Establish Your Niche

You can’t be everything to everyone. Before you begin offering your tutoring services, decide what subjects and grade levels you will tutor. Complete an honest assessment of your skills and the areas in which you are qualified to tutor. If necessary, brush up on the subjects you will be tutoring before you start your business.


Setting Your Rates

A critical part of starting a tutoring business is deciding how much you are going to charge for your tutoring services. There are many factors that will determine how much you can reasonably charge, including your location, level of education, experience, subject matter expertise and grades you tutor. Before you set your rates, do some market research to find out what other tutors in your area who have similar backgrounds are charging.


Set Up Your Office

One of the good things about becoming a tutor is that you don’t need commercial office space, which can help keep your start-up costs low. However, there are a few basic things you will need to launch your business. It’s a good idea to establish a dedicated workspace in your home for your business. After you have decided where your home “office” will be, you’ll need a phone, internet access, email and a computer to get started.