Start a longarm quilting business by following these 10 steps:
- Plan your Longarm Quilting Business
- Form your Longarm Quilting Business into a Legal Entity
- Register your Longarm Quilting Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Longarm Quilting Business
- Get the Necessary Permits & Licenses for your Longarm Quilting Business
- Get Longarm Quilting Business Insurance
- Define your Longarm Quilting Business Brand
- Create your Longarm Quilting Business Website
- Set up your Business Phone System
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your longarm quilting business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a longarm quilting business?
Most longarm quilting business owners manage everything from their home office/studio. Before getting started, coordinate with your insurance professional to identify any additional insurance needs that could arise from this business venture. One uninsured claim could shut your business down for good. In addition to these needs, it is important that you invest a portion of your budget towards marketing your business.
Many entrepreneurs entering this industry already own a frame and machine that they are comfortable with. If you are due for a new one, these setups range anywhere from $1,500 to over $7,000. There are used options available; just make sure you purchase from a reputable retailer and have tested out the equipment prior to purchasing. Your new machine, plus needles, thread, pantographs, and the other items needed to properly set up a business in the U.S. will set you back up to $15,000.
What are the ongoing expenses for a longarm quilting business?
Ongoing expenses for a longarm quilter are fairly minimal. In addition to the standard administrative fees associated with running a business, business owners are encouraged to attend conventions annually. This is a great opportunity to stay abreast of emerging trends and network within the community. You will also want to make sure your equipment is serviced regularly, which will help reduce lost revenues due to failed equipment. You will be required to reinvest a portion of your earnings to purchase supplies for any upcoming projects. This money is recouped once you collect fees on said project.
Who is the target market?
This industry caters to a very niche market. The vast majority of your clients will be quilters who lack the necessary skills and/or equipment to finish their own creations.
How does a longarm quilting business make money?
Each client has their own set of unique needs. Fees are collected based on the services required and are set based on hours invested and supplies required. The fee structure is similar for custom and original pieces sold by the longarm quilter.
How much can you charge customers?
Each quilt will be priced based on the services required, techniques used, price of material, and time spent on the creation. Experienced quilters recommend determining a base hourly rate ahead of time. This will simplify the quoting process. When approached with more complicated orders, you can then determine the average time it would take, including additional time spent on more in-depth techniques, and multiply that by your hourly rate. Longarm quilters who are unsure how long a specific technique would take are urged to add an additional percentage to the total price - 25% to 75% is standard, depending upon the complexity and size of the work. Some longarm quilting service businesses charge a flat fee per square inch.
How much profit can a longarm quilting business make?
Total annual profit depends upon your fee structure and the number of orders you complete. If you charge by the square inch, a basic longarm service on a queen size quilt will earn you just under $100, with a king size coming in at $125. To increase profits, many business owners offer a variety of additional services, including creating custom quilts for interested clients.
How can you make your business more profitable?
To maximize profitability, consider taking as many custom orders as possible. You can charge a higher rate for these pieces, potentially doubling your income and requiring lower production numbers. Many quilting professionals have also found success teaching quilting classes, as well as selling their own patterns.
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 Longarm Quilting Business Name Generator
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.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your longarm quilting business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
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 for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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 longarm quilting 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.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A longarm quilting business is generally run out of a workshop. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a longarm quilting business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your longarm quilting business will be in compliance and able to obtain a CO.
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.
Learn more about General Liability Insurance.
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.
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.
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 longarm quilting business
The most critical component to your marketing strategy is a portfolio of your work. This will show potential customers your experience and skill level. Once you have done so, share printed material throughout your area, targeting shop owners, local guilds, patchwork teachers, upholstery and drapery shops, and interior designers. If your goal is to extend your reach beyond the local market, a website or Etsy account, along with a strong social media presence, should be an integral part of your marketing strategy.
How to keep customers coming back
Customer retention is largely based on the level of customer service you deliver. For each order, make sure you do not exceed the agreed-to budget and that the quilt is delivered on time. Of course, things come up that are out of our control. If this happens, communicate with the client throughout the process. When working with local shops, the image you portray and the service you deliver will have long-lasting effects. Strong customer service ensures positive word of mouth, while one negative review can cause you to lose that customer and everyone else with whom they decide to share their story. This includes how you decide to handle that “bad customer” who is clearly in the wrong, yet unwilling to take ownership of any wrongdoing.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
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.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
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 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Nextiva
Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start A Longarm Quilting Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Those who enter this industry truly enjoy the process of helping fulfill someone else’s vision. They enjoy working with their hands, adding the finishing touches to their clients’ artistic fabric pairings, which tell a story. Most quilters have spent years sewing quilts for family and friends and, at the encouragement of others, are ready to take their hobby to the next level.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a longarm quilting business?
As a longarm quilting business owner, much of your day will be spent on the longarm machine. But there are a number of other tasks you must tend to on a regular business to ensure you are treating this like a business, rather than an extension of your hobby.
- Answering inquiries, via telephone and/or email, from potential customers
- Collaborating with clients regarding the specifics of their order
- Managing inventory, delivering original quilts that have been sold
- Shopping and ordering the essentials for each project
- Marketing your business and completed projects
- Tending to administrative duties such as sending out invoices and paying bills
- Researching new techniques and industry trends
As the business begins to mature, it may be necessary to hire an assistant to handle administrative tasks, allowing you to focus solely on the duties that inspire you most.
What are some skills and experiences that will help you build a successful longarm quilting business?
Those entering this industry have typically been creating quilts as a hobby for many years. Therefore, they possess the necessary skills and experience to create their own masterpieces and help less experienced quilters realize their quilting vision. However, hobbyists turned entrepreneurs are urged to carefully consider this from a business standpoint. When approached for a quote, it’s important to provide the client a realistic timeframe; and stick to it. Additionally, your quoted price includes all materials and time spent, so it is critical that business owners have enough experience to make these estimations accurately. Failure to do so results in reduced profits.
As mentioned, this is now a business, rather than a hobby. Therefore, those who do not possess strong business management skills or are not educated in modern marketing strategies are encouraged to seek assistance from professionals who are experienced in this realm.
What is the growth potential for a longarm quilting business?
The growth of your business is directly tied to the number of hours you wish to dedicate to production, as well as consumer demand. Quilters looking to take their business’ growth to the next level are committed to a strong marketing strategy, hiring additional longarm quilters to ensure orders are fulfilled on time and at or below budget.
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:
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 longarm quilting business?
Successful longarm quilting business owners offer the following advice:
- Carefully consider all ongoing costs associated with managing your own business. Price your services accordingly.
- Develop a thick skin and really push the customer for input. There is nothing worse than a client saying “Just do whatever” and then reporting back later that this was not what they were looking for at all.
- Practice long and hard, really sharpening your skills, before deciding to take money for this specialty service.
How and when to build a team
Longarm quilt business owners encourage those just entering the industry to work with professionals who can help guide you through the process of starting and managing a business. While it may increase your budget, the additional profit realized will more than make up for monies spent. If and when demand increases, you might want to consider hiring more longarm quilters. When interviewing prospective employees, carefully consider their experience and what skills they bring to the table. While they may be completing the work, it is your name that goes on each quilt.