How to Become a Ghostwriter

Many people dream of seeing a book with their name on the cover, but not everyone has the ability to write one themselves. Ghostwriters are hired to write works for those who either cannot or do not want to write their own works. Ghostwriters deal with a range of clients from celebrities to everyday people who need their stories to be told.

You may also be interested in additional online business ideas.

Learn how to start your own Ghostwriting Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

Start a ghostwriting business by following these 10 steps:

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

We have put together this simple guide to starting your ghostwriting 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:

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 Ghostwriting 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.

Want some help naming your ghostwriting business?

Business Name Generator

What are the costs involved in opening a ghostwriting business?

Starting a ghostwriting business is not expensive, but it does requires a bit of money to get going.

As most ghostwriters work from home, the biggest expense is most likely marketing. But the good news is these costs are minimal. At the very least, ghostwriters should have their own domain name and a good-looking website to advertise their services. A professionally designed website can cost several hundred dollars for a simple site or several thousand dollars for a more complex one. Ghostwriters who want to keep their startup costs as low as possible may want to consider a low or no cost do-it-yourself website design option. The cost to host a website is usually less than $100 dollars a year and buying a domain name is under $10 per year.

Most ghostwriter already own a computer, but some may wish to purchase a new one specifically for their business. Ghostwriting doesn't demand much from a computer and even the lowest-priced models are more than adequate. A reliable Internet connection is critical and can run from $30 to $100 a month depending on the speed of the connection.

Another expense worth considering is joining a professional association like The Association of Ghostwriters or National Association of Independent Writers and Editors. These types of organizations are especially helpful for new ghostwriters. Each organization's yearly dues are under $100.

What are the ongoing expenses for a ghostwriting business?

The ongoing costs for a ghostwriting business include marketing, utilities, and any membership fees.

Who is the target market?

Since the majority of the market for ghostwriting is nonfiction, the ideal nonfiction clients include anyone who wants to promote their image or ideas like celebrities, business owners, everyday people who have an extraordinary story to tell.

There is also work for ghostwriting fiction. Most jobs for ghostwriters who write fiction are for genre novels like thrillers, fantasy and romance.

How does a ghostwriting business make money?

A ghostwriting business earns money by writing under the name of their clients for a pre-determined payment.

How much can you charge customers?

Ghostwriters usually charge a fee which is based on the length and type of assignment the client wants them to write. Inexperienced ghostwriters without expertise in a subject may charge as low as $5,000 for a book-length manuscript. With a little experience, the average ghostwriter can charge between $15,000 and $50,000 per book. Well-known ghostwriters can command much more.

How much profit can a ghostwriting business make?

Due to the low fixed expenses, the majority of the money ghostwriters earn are pure profits.

How can you make your business more profitable?

Ghostwriters can increase their writing rates by becoming an expert in a niche subject. Taking courses or earning a degree can significantly add to a ghostwriter's bottom line. Many writers who start off ghostwriting eventual begin to publish under their own names.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

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 ghostwriting business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

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!

You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

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.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

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.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

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 ghostwriting business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Services Contract

Ghostwriting 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. Here is an example of one such services agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your ghostwriting 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.

FInd out what types of insurance your Ghostwriting Business needs and how much it will cost you by reading our guide Business Insurance for Ghostwriting Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a ghostwriting business

The best way to market a new ghostwriting business is by networking. The easiest way to network is online through sites like LinkedIn or Facebook by joining as many writing groups as possible and keeping your professional profile up-to-date. A private website is also an essential tool for driving new business. A ghostwriter can use a website to showcase her writing style and to attract clients through inbound marketing.

How to keep customers coming back

Clients love friendly and attentive service, but delivering a great finished product on time is the only way to keep a client truly happy. A happy client means more referrals and more work in the future. Above all else, a ghostwriter needs have the ability to keep all of the promises they make to clients. Projects should be completed on time, or even in advance of the promised deadline. 

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Successful ghostwriters must like to work in the background and have no interest in gaining popularity through writing. They need to be adaptable and flexible, both in their writing style and their work schedule. At the same time, ghostwriters require the self-discipline to remain on task and see a project through by delivering exactly what they promise.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a ghostwriting business?

Most ghostwriters spend a large part of the working day marketing their services to potential clients. When ghostwriters are actually working on a project, their time is divided between researching, writing, communicating with clients, and revising their writing based on the client's feedback.

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

Ghosting is more than just knowing how to write well. The best writer won't be able to make it in the ghostwriting business if he doesn't master other skills as well. Success as a ghostwriter depends on knowing how to properly research a topic, having the ability to work well with clients, and the understanding how to market and run a professional business,

What is the growth potential for a ghostwriting business?

Hiring a ghostwriter to write a book has always been widespread practice. But these days more and more people are using ghostwriters to publish a book to help shape their public images or to cash in on their popularity. There is always work available for quality ghostwriters.

Not sure if a ghostwriting business is right for you? Try our free Business Idea Generator and find your perfect idea.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a ghostwriting business?

It takes a while to establish a new ghostwriting business, but there are a few ways to get the ball rolling. Many ghostwriters received their first projects from friends of friends, so successful ghostwriters need to network either online or offline. One of the best ways to network is to become actively involved in a particular subject matter, or niche. A ghostwriter who is able to develop a reputation as the "go-to writer" on a particular subject, never has to worry about looking for work in the future.

How and when to build a team

Most ghostwriters work alone, but some do have assistants to help them to communicate with clients, conduct research or edit their work. A ghostwriting business which needs occasional help can benefit from hiring freelancers to avoid increasing its fixed monthly costs.

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