How to Start a Copywriting Business

Start a copywriting business by following these 10 steps:

1. Plan your Copywriting Business
2. Form your Copywriting Business into a Legal Entity
3. Register your Copywriting Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Copywriting Business
6. Get the Necessary Permits & Licenses for your Copywriting Business
7. Get Copywriting Business Insurance
8. Define your Copywriting Business Brand
9. Create your Copywriting Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your copywriting business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Copywriting Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a copywriting business?

Costs to get started are low and generally include a computer and a stable internet connection. If you’re working with larger corporate clients, you will also need a business Paypal account or merchant account and invoicing software.

Costs for a new computer range from between $400 up to $2,500 or more.

Fees for a merchant account also vary, but can include a flat fee plus a per transaction fee. Some companies, like Paypal, may charge you a flat per-transaction fee and a percentage of each transaction. Merchant accounts and payment gateways may charge you a monthly fee for service, plus a percentage of sales and a flat per-transaction fee.

Invoicing software ranges from free to several hundred dollars per year for professional applications.

Another expense, which varies, is advertising. Using pay-per-click advertising carries a higher cost than using other forms of advertising, like referrals or email marketing.

If you start a large agency, with full-time employees, your costs can increase dramatically. Under this model, you may spend up to $10,000 for high-end computer systems and conference software.

What are the ongoing expenses for a copywriting business?

The only ongoing expenses in this business are utilities to run electronics (computers, lights, etc.) and service fees for merchant accounts and invoicing software. If you employ other copywriters, you will also need a payroll system.

If your clients require you use a special content management system (CMS), you will need to maintain this as well.

Who is the target market?

Ideal clients for a copywriting business are typically large corporate clients who can afford a professional writer or team of writers. Larger clients are also more likely to have ongoing or regular projects and assignments, providing a more stable source of income.

Avoid clients who are smaller or who have no (or very little) budget for projects. Individual clients are more risky than corporate clients.

How does a copywriting business make money?

Most copywriting companies charge clients a flat rate per word or a flat rate per project. However, some companies charge tiered rates depending on the amount and type of work being performed.

How much can you charge customers?

Writing fees are all over the board. There is, unfortunately, no standard rate for writing. However, there are strong trends within the industry. Most volume-based copywriting agencies charge clients between $0.05 and $0.10 per word. In some cases, they charge less. Higher-end agencies may charge clients between $0.20 per word up to $2 or more per word.

Flat-fee rates can be as low as a few dollars for volume work or between $500 and $3,000 or more for customized projects. The higher the fee, the more specialized the project tends to be. Some companies will also require graphical design and layout for higher-priced projects.

How much profit can a copywriting business make?

The profit potential for a copywriting agency is almost unlimited. According to Payscale, the average wage for a freelance writer is $24.24 per hour. As the owner of a copywriting agency, you could earn between $31,000 and $95,000 per year.

How can you make your business more profitable?

Some specialties in copywriting demand more money than others. For example, technical writing usually commands higher fees than general copywriting. Focusing your business on technical subjects like law, finance, tutorials, and educational material may allow you to make more money than writing general topics.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your copywriting business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a copywriting business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

In particular, some states may require copywriting businesses to obtain a seller’s permit. A seller’s permit enables states to record and collect taxes from goods (and sometimes service) sales.

Services Contract

Copywriting businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership (who will ultimately own the content, and how any royalties will or will not be distributed). Here is an example of one such services agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your copywriting business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is only suitable for individuals who have a passion for writing or managing writers. It helps to have excellent command of the English language, but you don’t need to be an English major. You will work long hours and work tends to be unpredictable. Some clients will demand nights and weekend work for projects.

What happens during a typical day at a copywriting business?

Day-to-day activities usually involve meeting with new clients, checking for assignments, billing for work completed, managing workflow (usually in a spreadsheet or similar application), researching other companies’ brands and general culture, and of course writing and completing assignments from those clients.

What are some skills and experiences that will help you build a successful copywriting business?

Generally, no special certifications are necessary but it helps to have a strong background in writing or journalism. In addition to general writing skills, good copywriters have a writing style that has a flexible voice which ensures your content fits the voice of the company/institution you are writing for.

Corporate clients tend to hire professional writers or journalists that have experience in a specific industry or niche. As such, some projects may require the writer have special degrees or certifications in (or related to) that industry.

For example, a corporate client may require a copywriter have a degree in biology if the assignments or project is science-based and focuses on biology topics. A well-developed portfolio is essential too, as you will need some material to show prospective clients samples of your work.

What is the growth potential for a copywriting business?

A small company may only consist of one or two writers. A larger company is usually set up to accommodate a team of writers. Most of the time, a small copywriting business can be run out of an apartment or house.

Larger operations can be set up in a more traditional office setting.

If a good reputation is built, these businesses can even expand to take on clients from dozens of companies at once.