How to Start a Proofreading Business

A proofreader reviews the written word in its various forms for clients and corrects for spelling, punctuation, and typos. To start a proofreading business, you must have a strong command of language usage, spelling, and punctuation. Depending on your clientele, you might be reviewing and correcting the language used in books, magazine articles, web content, ads, packaging, student assignments, or virtually any other vehicle of written communication.

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

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

Start a proofreading 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 proofreading 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 a proofreading business?

The good news is that your startup expenses will be very reasonable. All you really need is a place to work, which could easily be your home, a local coffeehouse, or a public library. You’ll also need a computer and WiFi access. Your computer expenses today might very well be less than $1,000. Some clients might insist that you have Microsoft Office or other software, which might cost you a few hundred dollars a year.

Your web presence is also critical. You can find plenty of online sources for free websites, and you can probably write your copy yourself to save money.

What are the ongoing expenses for a proofreading business?

Your only expenses are likely to be the income you’ll need to support yourself day to day: rent (if you have an office), car payments (for traveling to and from meetings with clients), etc. 

Who is the target market?

Anyone who writes for the public and requests proofreading assistance is a potential client. This could include editors and publishers, authors, business owners, or corporate communications clients, website owners, college and even high school students, ad agency creative directors, and the owners of small public relations firms, among many other client types.

How does a proofreading business make money?

You’ll charge your business or personal clients for your work. This might take the form of a per-page, per-word, or per-hour fee structure.

How much can you charge customers?

That’s going to depend greatly on your area of specialty. Ad agencies and public relations firms might hire you for $25 an hour. For some clients, you might earn $3 per page. And when dealing with indie authors, charge what the market will bear. But however you charge, try to get a rate that’s equivalent to at least $25 an hour. Here’s an interesting online article on proofreading fees.

How much profit can a proofreading business make?

Revenue can be highly variable depending on your clientele and self-marketing skills. Here’s one wage estimate that shows a median salary of about $48,900 for proofreaders. Keep in mind that this is about salaried proofreaders rather than freelancers, so that will make a difference. You should make more since you must be concerned with the added cost of your own tax withholdings and benefits.

How can you make your business more profitable?

If you feel confident enough in your writing abilities to add editing services to your repertoire, this generally pays more than proofreading.

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 Proofreading 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.

Find a Domain Now

Powered by

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 proofreading 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!

The Truic Flame Logo

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.
The Truic Flame Logo

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.

The Truic Flame Logo

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.

State & Local Business Licensing Requirements

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

For information about local 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:

Services Contract

Proofreading 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 proofreading 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.

Certificate of Occupancy

A proofreading business can be run out of an office. 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 proofreading 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 proofreading 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.

Recommended: Learn what business insurance for your Proofreading Business will cost.

Business Insurance for
Proofreading 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.
The Truic Flame Logo

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 a proofreading business

Your online presence is your best billboard. Your website should look impeccably clean and well structured, and be well-written. Your posts to social media must also be error-free. Here’s an example of a proofreader’s website that looks professional and inviting. (Notice her specialization in self-published authors.)

You might also use your digital presence to showcase the work you’ve been involved with, such as novels or magazine articles—with your clients’ permission, of course.

How to keep customers coming back

Maintain an online presence; you can even search the web for corporations and non-profit organizations whose websites are poorly written or full of typos. You might have to call to find out who the decision-maker is, but offer your proofreading service when you have contact information. Be diplomatic though—don’t mention the poorly-written state of the web content. They probably already know there are problems with it.

You might also find clients through the companies listed in this wrap-up of work sources for proofreaders and editors. There are many other broker services like these available online.

And finally, whenever you have happy customers, see if they’ll provide a brief written testimonial you can post to your blog, website or social media.

The Truic Flame Logo

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.

The Truic Flame Logo

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.

The Truic Flame Logo

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

Start A Proofreading Business In Your State

The Truic Flame Logo

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?

In addition to being a meticulous writer from a mechanical standpoint, you must be the kind of person who pays close attention to detail. Keep in mind, a proofreader is not the same as an editor. You’re not reviewing what your clients are trying to communicate, but rather how they write it in terms of spelling, punctuation, typographical errors, and word usage.

The Truic Flame Logo

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 proofreading business?

Today, most of your work will be acquired and executed online, so you’ll spend plenty of time behind your computer screen. Also keep in mind that everything you write online will be seen as an example of your work, so be careful. You don’t want to be thought of as the proofreader with too many typos or spelling mistakes. Here’s how your time might break down.

  • Attending to your online presence in terms of posting to your blog, contributing to social media, and updating/upgrading your website content.
  • Interacting with prospective clients, usually online but possibly by phone, or even face to face if they’re located near you
  • Proofreading your assigned materials, and addressing client comments

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

Many proofreaders have at least an associate degree in a relevant field of study such as English or creative writing. Some have been previously employed as a proofreader for ad agencies, publishers, or others who review and implement a lot of writing. Your background in areas of language use will be highly helpful.

What is the growth potential for a proofreading business?

The business has picked up recently in at least one market area with the upswing of self-published novels. While authors in conventional editorial relationships can rely on their publishers to attend to proofreading responsibilities, independent authors are on their own. However, the proofreading field is highly competitive so it’s important that you carve out a niche where you can effectively compete.

Not sure if a proofreading 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 below to view later.

Subscribe to our YouTube channel

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 proofreading business?

Start with a good team of advisers. You’ll get support, networking, and business advice by joining the various membership organizations open to you. This includes Editorial Freelancers Association, The Society for Editing, and The National Association of Independent Writers and Editors. Study each website closely to see which might be more advantageous to you, or join all three.

Consider starting a blog as a way of displaying your writing and proofreading abilities. You might also specialize in areas of interest or proficiency. For instance, if you read a lot of mystery novels, approach small, independent publishers and indie authors about proofreading their self-published work. As another example, if you have an ad agency background, seek regular or as-needed assignments from agency creative directors.

How and when to build a team

Many freelance proofreaders work alone, but if you find yourself with the fortunate challenge of having too much work and not enough hours in the day, you might consider adding gradually to your staff. Start with someone who can work with you on a freelance or part-time basis so you won’t have to lay off an entire team if workflow patterns change. You might find a talented English major at the local college or university who can give you 15-20 hours a week at a reasonable rate.

Next Steps

Get more ideas with our Business Ideas Generator.

Check out our How to Start a Business page.

Sign up at the Business Center to access useful tools for your business.

Have a Question? Leave a Comment!

Related Business Ideas