What are the costs to start and maintain a print shop?

Industry leaders report spending between $146,000 and $400,000 for a startup. Your initial investment will include the following: $4,000-$12,000 for rent and security deposits $1,500-$2,000 in equipment: Laminator, multiple printers, embossing machines, etc. $250+ for software Adobe Creative Cloud, Microsoft Office Suite, etc. Approximately $800 per computer Ongoing costs include device replacing and maintenance, restocking of paper and supplies, and license fees for software. Visit our How to Start a Print Shop guide to learn more about the costs of starting and maintaining this business.

Should I Start an LLC for My Print Shop?

Starting a limited liability company (LLC) for your print shop can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a print shop, lawsuits can arise from things like accidents involving your business’s delivery vehicles or claims of defamation by local competitors.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your print shop seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

Do I Need an LLC for a Print Shop?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should start an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Print Shop

By starting an LLC for your print shop, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Print shops will benefit from liability protection because of the risk of being sued for personal injuries, trademark infringement, data breaches, and more.

Example 1: A competitor is suing you, claiming that your logo is far too similar to theirs. Since your shop is an LLC, limited liability protects your assets so they could not be used to pay for this.

Example 2: One of your employees has been telling customers that a competitor steals personal belongings from their clients. The competitor is suing you for defamation. Should your shop be found in the wrong, your personal assets could not be taken since they are protected with limited liability as an LLC.

Example 3: The business vehicle you use for advertising and picking up supplies is involved in a car accident. The other motorist and their insurance company sues for damages, medical expenses, and lost wages. Limited liability as an LLC protects personal assets from the courts.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Print Shop

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a print shop owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Print shops rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a professional LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All businesses need insurance to protect their business assets — even LLCs. This is because limited liability protection from being an LLC protects your personal assets, not your business assets.

Office equipment like printers, scanners, and computers can be quite expensive and having customers use them daily can take a toll. Should any of these assets be damaged by a customer or an accident, insurance can help you replace them.

Common Situations Business Insurance May Cover for a Print Shop

Example 1: A customer injures his back while attempting to lift a large box of newly printed fliers. General liability insurance would cover the customer’s medical bills.

Example 2: As an employee vacuums the lobby just before closing time, a customer trips over the vacuum cord, falls into a display case, and cuts her head. General liability insurance would cover the customer’s medical bills and any costs associated with a lawsuit stemming from the accident.

Example 3: An employee temporarily moves a paper cutter to the front counter while cleaning a work table. At the same time, a customer sits a toddler on the same counter while completing a transaction. The toddler touches the paper cutter blade and cuts herself. General liability insurance would cover the toddler’s medical bills and your legal costs in the event of a lawsuit.

Other Types of Coverage Print Shops Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all print shops should obtain.

Commercial Property Insurance

If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire or natural disaster. Commercial property insurance would cover the cost of replacing your printing equipment and supplies after an accident so you can recover quickly.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability benefits stemming from a work-related accident.

Product Liability Insurance

When you sell products to the public, there’s always a chance a customer may file a lawsuit if they believe one of your products injured them. Product liability insurance would protect your business by covering your legal fees and any damages awarded in a settlement.

Business Interruption Insurance

If a fire, natural disaster, or other incident forces you to temporarily close for repairs, this coverage would help cover your financial losses until you can reopen.

Data Breach Insurance

If you collect and store employee and customer data, such as personal information and credit card numbers, you’re responsible for safeguarding that sensitive information. In the event of a data breach, this coverage would pay for your costs associated with any related lawsuits.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance and commercial property insurance.

Read our Business Insurance article for more info.

Industry leaders report spending between $146,000 and $400,000 for a startup. Your initial investment will include the following:

$4,000-$12,000 for rent and security deposits
$1,500-$2,000 in equipment:

Laminator, multiple printers, embossing machines, etc.

$250+ for software

Adobe Creative Cloud, Microsoft Office Suite, etc.

Approximately $800 per computer

Ongoing costs include device replacing and maintenance, restocking of paper and supplies, and license fees for software.

Visit our How to Start a Print Shop guide to learn more about the costs of starting and maintaining this business.

There are a number of ongoing costs to consider including general shop overhead (paper and ink), design software, maintenance and replacement of equipment, materials, payroll, and insurance.

Learn more about running a print shop.

Print shops make money by entering ongoing client relationships with repeat orders for various printing needs over time.

Learn more about starting a print shop.

Print shops offer a variety of printing and copying services to businesses and individuals with specific printing needs for events, special occasions, or large orders.

New print shop owners may not realize great profits in their first year. However, shops in populated areas with large repeat customers have a greater potential for high earnings.

Learn more about starting a print shop.