How to Start an LSAT Tutor Business

An LSAT tutor business prepares aspiring law students for the LSAT exam. A great LSAT is important for admission into law school. Tutors offer one-on-one tutoring sessions, classroom sessions with multiple students, or a combination of both. To ensure success, LSAT tutoring businesses teach test-taking strategies and help students improve their critical thinking, written, and problem-solving skills.

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


Start an LSAT Tutor Business by following these 10 steps:

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 LSAT Tutor Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

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 are the costs involved in opening an LSAT Tutor Business?

Many LSAT tutoring businesses are managed from a home office. This keeps startup costs low and increases your potential for profit. You made your first investment in this new business venture long ago when you attended law school and worked as an attorney.

To launch your business, you’ll need a startup budget of $1,000 to $2,000. This covers your business tools, study materials, liability insurance, and advertising materials. If you elect to operate outside the home, you’ll need to add at least $10,000 to your startup budget. This covers the lease deposit, first and last month’s rent, furniture, and utility deposits. Exact costs from region to region will vary.

What are the ongoing expenses for an LSAT Tutor Business?

Like your startup business costs, ongoing expenses are directly tied to your business structure. Operating out of a home office will reduce overhead costs and increase profits. Your monthly home-office budget will look similar to the startup costs. It will include testing materials, liability insurance, expenses for continuing education, website maintenance, travel expenses, and marketing.

Once your business is established and it’s time to take on employees, your monthly budget will increase. You can avoid some payroll-related expenses by hiring freelance tutors.

Who is the target market?

Your target market is pre-law students who are preparing to take the LSAT exam. Since the LSAT is the same for every state, you don’t have to limit your marketing efforts to your home state.

How does an LSAT Tutor Business make money?

Your LSAT tutor business will make money by charging a fee for your test preparation services. Many tutor businesses offer one-on-one coaching sessions and a variety of packages that meet every student’s budget. This ensures every student has a positive experience and is set up for success.

How much can you charge customers?

LSAT tutor pricing varies widely from one region to the next. Some tutors charge an hourly rate of $50, while others charge over $100 an hour for their services.

Pricing will directly impact the quality and amount of business you receive. When creating your price sheet, research what your competitors are charging. While it’s okay to beat their prices, do not undervalue your time and expertise.

How much profit can an LSAT Tutor Business make?

As a whole, the test tutoring market is a billion-dollar industry. It is recession-proof and provides ample opportunity for profit, with all indicators pointing towards continued growth. Established LSAT tutors report monthly profits of over $15,000.

How can you make your business more profitable?

LSAT tutors seeking opportunities to increase profits should consider hiring employees with expertise in other standardized tests. BAR tutoring services are an excellent complement to any LSAT tutoring business. You could also offer your services assisting students in finding grants and share your experience and knowledge through paid webinars and ebooks.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

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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 LSAT Tutor 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 start 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!

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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?.

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

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.
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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.

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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.

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.

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

How to promote & market an LSAT Tutor Business

A strong marketing strategy is targeted and diverse. First, make sure your website provides information regarding what you do and why students should choose you over the competition. Your relationship with clients starts the minute they land on your website or social media page. Establish yourself as an industry leader and exude confidence both online and when communicating directly with potential customers.

Your current clients are a great resource for determining where you should focus your marketing efforts. You should advertise at universities and colleges, on social media platforms, in legal magazine publications, and on online forums. Networking and fostering relationships with colleagues, advisors, and college professors are also effective ways to reach new clients. Research LSAT tutor directories and find out how you can get listed on their sites.

How to keep customers coming back

Once your client passes their LSAT, they’ll no longer need your LSAT tutoring services. Approach clients who have reached their testing goals and ask them to write a testimonial about their experience. If client retention is a business goal, consider including BAR exam tutoring as part of your services.

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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.

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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.

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Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.

Start An LSAT Tutor Business In Your State

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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?

To position yourself as a successful LSAT tutor, you should have a legal background and extensive knowledge on the LSAT exam. You should enjoy the process of helping others achieve their dreams of attending law school and have an innate ability to help others understand complex concepts.

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

Take our Entrepreneurship Quiz to find out!

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What happens during a typical day at an LSAT Tutor Business?

As an LSAT tutor, you’ll help your clients prepare for the law school entrance exam. While no two days will be exactly alike, your schedule will include the following tasks:

  • Answer prospective client questions
  • Address concerns and questions about current clients
  • Assess each student’s strengths and weaknesses
  • Identify the client’s learning style
  • Develop personalized study strategies based on your assessments
  • Research innovative study and test-taking techniques and present them to your students
  • Keep clients motivated and accountable for their progress
  • Encourage clients and help boost their confidence levels
  • Travel to students and conduct one-on-one coaching sessions

When you aren’t working directly with students, your focus will be on networking and marketing. It’s also important that you remain abreast of LSAT testing changes and researching new ways to help your students improve their test-taking skills.

What are some skills and experiences that will help you build a successful LSAT Tutor Business?

To be a successful LSAT tutor, you should have a legal background. You should also be educated in innovative test-taking strategies and have strong writing, critical thinking, and problem-solving skills. Experience teaching individuals at varying skill levels will also set you up for success.

Your students are under a lot of pressure. You can gain trust and a positive reputation by striving to always provide a safe space for your clients. The energy you put out is the energy you receive. If you fail to provide an engaging environment that’s conducive to learning, you are not doing your job as an LSAT tutor. Patience and empathy will go a long way in building a trusting relationship.

What is the growth potential for an LSAT Tutor Business?

Between 100,000 and 150,000 LSAT exams are administered in the US each year. Each of these students are vying for a coveted spot in law school. The pressure is immense, even for the strongest students. To ease the pressure and boost confidence, many students turn to tutors for guidance and support. As a result, this can be a lucrative and scalable business venture. Business owners now have the option to coach online and in-person, positioning tutors for nationwide growth.

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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 an LSAT Tutor Business?

Successful testing tutors recommend joining industry-related professional associations. Associations designed to support standardized test tutors offer valuable business tools, support, and networking opportunities. The most recognized ones in the United States are the National Test Prep Association and the Association of Test Prep, Admissions, and Private Tutoring.

Joining bar associations offer great networking opportunities and can help keep you informed of recent industry changes. This directory of bar associations includes all the current bar associations in each state.

While it is important to boost your client’s confidence, successful LSAT tutors caution against guaranteeing test results. You can set your students up for success, but that doesn’t guarantee students will get the results they hope for. If you do promise results, be prepared to follow through and provide a refund when a student doesn’t live up to their potential.

How and when to build a team

When launching your business, you’ll likely take on the role of tutor, marketing guru, and administrator. As you reach certain milestones, it may be in your best interests to hire support staff and additional tutors. Each new team member should possess the skills and experience needed to perform up to your standards. Remember, their work directly impacts your brand, so choose wisely.

Next Steps

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