Does Your Tutoring Business Need an LLC?

So you’ve started a tutoring business and you keep hearing the term LLC.  You might be wondering what is an LLC and does your business need one?

It’s a great question and you’ve come to the right place for the answers.

Let me start by saying, I’m not a lawyer nor am I qualified to give you any sort of legal advice.  

I do however, run a successful tutoring business and I’d love to share what’s worked for me!

LLC stands for limited liability company.  LLC’s are pretty popular because they provide the same limited liability as a corporation but they are cheaper and easier to run. 

Do I need an LLC?

I tell all my students in the Tutorpreneur Academy® that an LLC is one of the first steps to a thriving tutoring business.  It legitimizes your business which allows you to start treating all aspects of your business in a professional manner.

One of the many benefits of filing an LLC for your business is your personal assets and identity are protected within the LLC.  For example, if your business were to get sued, all of your personal money and assets would be safeguarded.  This most likely won’t happen, but having an LLC is an added layer of protection.

Having an LLC for your tutoring business also means you’re able to take expenses like supplies used tutoring or mileage driven to tutoring clients’ houses off your taxes.  Check with your accountant on how this works and what items you can deduct now that you’re an official business owner.

How do I file for an LLC?

This depends on the state you live in.  You can start with Google by typing in “How do I file an LLC in _____?” (insert state name here).  I recommend doing a search on your state government’s website for LLC as well.  Make sure it’s a legitimate website before you ever enter your personal information and payment.

Another great way to set up an LLC is to hire a local attorney to do it for you.  This way you’ll know it’s done the correct way and you won’t have to worry about it.  I personally hired a lawyer when I created the Tutorpreneur® Contract Template.  Peace of mind for your business is truly priceless.

Starting a tutoring business is an exciting time.  There’s so much to learn and take in.  Creating an LLC for your business is just one of many steps! 

Looking for the exact roadmap I used to start my business?  Download the free 10 step guide to starting your own tutoring business now!