What are the costs to start and maintain a 3D printing design business?

Starting and maintaining a 3D printing design business can be done quite inexpensively. You will be able to work from home, meaning that your costs will be: Getting a business website (around $500) Purchasing a commercial printer (around $6,000 or less, depending on the model) Advertising budget (around $2,000) Website hosting (around $100 per year) Re-stocking materials Visit our How to Start a 3D Printing Design Business guide to learn more about the costs of starting and maintaining this business.

Should I Start an LLC for My 3D Printing Design Business?

Starting a limited liability company (LLC) for your 3D printing design business 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 3D printing design business, lawsuits can arise from things like IP law violations, employee injuries, and business debt.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your 3D printing design business seem more credible.

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

Do I Need an LLC for a 3D Printing Design Business?

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

You should form 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 3D Printing Design Business

By starting an LLC for your 3D printing design business, 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.

3D printing design businesses will benefit from liability protection because of the risk of possible trademark infringement, general business liability, or even financial data breaches.

Example 1: You take on a large business loan to expand your 3D printing design business and are unable to pay it back. The limited liability offered by an LLC entity will protect your personal assets and ensure that no creditor can sue you or your partners.

Example 2: A co-owner of your 3D printing design business commits a tort or infringes on another company’s intellectual property rights. Here, liability will be limited to your LLC’s assets – and potentially your partner’s – but not your own.

Example 3: You get sued for breach of contract as a result of failing to fulfill your legal obligations to a client on time. As a result of the limited liability offered by an LLC, you could not be held personally liable for any compensation that is or is not awarded to the opposing party.

Example 4: Your business’s new logo turns out to be similar to another company’s trademarked design. The company sues you for infringement.

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 3D Printing Design Business

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 3D printing design business 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

3D printing design businesses 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?

Yes, all LLCs need insurance because the limited liability offered by them protects the owners’ assets only, not the business’s.

In order to protect your 3D printing design business’s assets (e.g., hardware, software, etc.) you will need to purchase business insurance.

Common Situations Business Insurance May Cover for a 3D Printing Design Business

Example 1: While touring your business, a potential investor trips over a box, breaks an arm, and decides to sue. General liability insurance would cover your legal fees and any required settlement.

Example 2: A competitor files a lawsuit against your company for slander and libel. You disagree with these claims, but want to hire a lawyer immediately. General liability insurance would pay for your legal defense costs.

Example 3: During a meeting in your office, a customer trips on the stairs, breaks an ankle, and asks you to pay for his medical treatment. General liability insurance would cover the cost of his treatment.

Other Types of Coverage 3D Printing Design Businesses 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 3d printing design businesses should obtain:

Product Liability Insurance

While you strive to ensure your printed products bring satisfaction and functionality to customers, there’s always a chance someone might decide what you produced caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in your 3D printing equipment and supplies. If you own the building in which you operate, commercial property insurance would cover the cost of repairing or replacing your business-related property in the event of a fire, theft, or natural disaster. This includes structural damage to your building as well as your special equipment and supplies.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. 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 or death benefits stemming from a work-related accident.

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.

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.

Read our 3D Printing Design Business Insurance article for more info.

Starting and maintaining a 3D printing design business can be done quite inexpensively. You will be able to work from home, meaning that your costs will be:

Getting a business website (around $500)
Purchasing a commercial printer (around $6,000 or less, depending on the model)
Advertising budget (around $2,000)
Website hosting (around $100 per year)
Re-stocking materials

Visit our How to Start a 3D Printing Design Business guide to learn more about the costs of starting and maintaining this business.

Ongoing expenses will include your materials to create printed items, a host for a website, advertising to make sure your target customer is aware of your business and utilities.

Learn more about running a 3D printing design business.

3D printing design businesses make money by printing and delivering 3D versions of shapes and objects to customers. Designers can also make designs for other 3D printing companies to use.

Learn more about starting a 3D printing design business.

3D printing design businesses print items according to customer specifications. Some 3D printing businesses also come up with their own designs to sell.

The average income for a 3D artist is around $53,000 a year, but this can be increased by writing for blogs, teaching, and creating products or designs for other companies.

Learn more about starting a 3D printing design business.