How To Start A Copywriting Company

These are often corporations that are engaged for marketing campaigns by other companies. They write blogs, social media postings, industry reports, and other types of material. Because there aren’t many corporations that employ writers solely, copywriting firms operate on a freelance basis. As a result, you should strive to work with numerous customers to keep your workload consistent.

Follow these ten steps to start a copywriting business:

Plan your Copywriting Company

Create a legal entity for your copywriting business.

Register your copywriting company for tax purposes.

Create a Business Bank Account and a Credit Card

Create an accounting system for your copywriting business.

Get the Permits and Licenses You Need for Your Copywriting Business

Purchase Copywriting Business Insurance

Define your Copywriting Company Brand

Make a website for your copywriting business.

Configure your Business Phone System

Starting a company entails more than just registering it with the state. We’ve put up this basic guide to getting started in the copywriting industry. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.

STEP 1: Make a business plan.

A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:

What are the initial and continuing expenses?

Who is your intended audience?

How much money may you charge your customers?

Fortunately, we have done a lot of the legwork for you.

What are the expenses of starting a copywriting business?

The costs to get started are minimal, and typically comprise a computer and a reliable internet connection. If you’re dealing with bigger corporate customers, you’ll additionally need a business Paypal or merchant account, as well as invoicing software.

A new computer might cost anything from $400 to $2,500 or more.

Fees for a merchant account vary as well, but might include a set charge as well as a per transaction fee. Some organisations, like as Paypal, may charge a flat fee per transaction as well as a percentage of each transaction. Payment gateways and merchant accounts may charge you a monthly fee for servicing, as well as a percentage of sales and a flat per-transaction cost.

Invoicing software costs anything from free to hundreds of dollars per year for professional programmes.

Advertising is another variable cost. Pay-per-click advertising is more expensive than other kinds of advertising, such as referrals or email marketing.

When you establish a major firm with full-time personnel, your expenditures might skyrocket. You may spend up to $10,000 on high-end computer equipment and conferencing software under this approach.

What are the continuing costs of running a copywriting business?

In this company, the only continuous expenditures are utilities to power electronics (computers, lights, etc.) and service fees for merchant accounts and invoicing software. If you hire more copywriters, you will also want a payroll system.

You will also need to maintain a particular content management system (CMS) if your customers demand one.

Who is the intended audience?

Large corporate customers that can afford a professional writer or team of writers are often ideal clients for a copywriting service. Larger clientele are also more likely to have continuous or consistent projects and assignments, offering a more consistent stream of revenue.

Avoid customers who are tiny or have no (or very little) project money. Individual customers are riskier than corporate customers.

How can a copywriting firm generate revenue?

Most copywriting firms charge customers a set payment per word or per job. However, some businesses charge different prices based on the quantity and kind of service done.

How much money may you charge your customers?

Fees for writing vary greatly. Unfortunately, there is no set fee for writing. However, there are significant industry trends. The majority of volume-based copywriting services charge between $0.05 and $0.10 per word. They may charge less in certain circumstances. Higher-end firms may charge customers between $0.20 and $2 per word or more.

Flat-fee prices for bulk work may be as little as a few dollars, while they might range between $500 and $3,000 or more for specialised tasks. The greater the charge, the more specialised the job. For more expensive projects, some organisations may additionally need graphical design and layout.

How much money can a copywriting company make?

A copywriting agency’s earning potential is almost limitless. The average hourly compensation for a freelance writer is $24.24, according to Payscale. You may make between $31,000 and $95,000 per year as the owner of a copywriting firm.

How can you increase the profitability of your company?

Some copywriting specialisations are more expensive than others. Technical writing, for example, normally charges a greater cost than generic copywriting. Concentrating your company on technical issues such as law, finance, tutorials, and instructional content may help you to earn more money than writing about broad themes.

STEP 2: Establish a legal entity

Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.

Establishing a formal business organisation, such as an LLC or corporation, shields you from personal liability if your copywriting company is sued.

STEP 3: File your taxes

Before you can begin for business, you must register for a number of state and federal taxes.

To register for taxes, you will need to get an EIN. It’s really simple and completely free!

Taxes on Small Businesses

Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).

These guides will teach you more about small company taxes:

Taxes on LLCs

LLC vs. sole proprietorship

Corporation vs. LLC

S Corp vs. LLC

How to Form a S Corporation

S Corporation vs. C Corporation

There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.

STEP 4: Establish a company bank account and credit card

Personal asset protection requires the use of distinct business banking and credit accounts.

When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.

Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.

Establish a business bank account.

Opening a business bank account is not only required when asking for business financing, but it also:

Separates your personal assets from the assets of your firm, which is required for personal asset protection.

It simplifies bookkeeping and tax reporting.

Create a net 30 account.

Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.

Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.

Apply for a business credit card.

Obtaining a business credit card benefits you in the following ways:

Put all of your company’s costs in one location to separate personal and business spending.

Build your company’s credit history, which will be important for raising funds in the future.

STEP 5: Establish business accounting

Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.

STEP 6: Obtain all required permissions and licences

Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.

Requirements for State and Local Business Licensing

To run a copywriting company, certain state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.

Some states, in example, may require copywriting firms to acquire a seller’s permit. A seller’s permit allows states to record and collect taxes on sales of products (and occasionally services).

Furthermore, local licencing or regulatory restrictions may apply. For additional information on local licences and permissions, please visit:

Check with the clerk’s office in your town, city, or county.

Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.

Contract for Services

Before beginning a new job, copywriting companies should demand customers to sign a services agreement. By defining payment terms and conditions, service level expectations, and intellectual property ownership, this agreement should clarify client expectations and reduce the likelihood of legal problems (who will ultimately own the content, and how any royalties will or will not be distributed). Here’s an example of a service agreement.

STEP 7: Obtain commercial insurance.

Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.

There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.

Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.

STEP 8: Establish your brand

Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.

How to Promote and Market a Copywriting Company

Most copywriting firms have a website for marketing purposes. Pay-per-click advertising, email marketing, press releases, and direct response advertising are all popular marketing tactics in this area. Written advertising are extremely significant since they display your skill to successfully write and market.

How to Keep Customers Returning

Consider specialisation if you want more customers or higher-paying clientele. Because expert writers are in limited supply, developing a specialisation in a certain topic might help your firm become more profitable. However, it may be good to stay well-versed in many fields in order to preserve your attractiveness to a diverse clientele.

Hiring generic writers to “fill in” and provide a basic amount of cash for you is another viable option. As a result, the organisation may generate several income streams, with the maximum earning potential coming from a specialised personnel pool.

STEP 9: Create your company’s website.

After you’ve defined your brand and designed your logo, the next step is to build a website for your company.

While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.

The following are the primary reasons why you should not put off developing your website:

Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.

Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.

STEP 10: Install your company phone system.

Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.