Should I Start an LLC for My Professional Speech Writing Business?

Starting a limited liability company (LLC) for your professional speech writing 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 professional speech writing business, lawsuits can arise from things like delivering a speech to a client late, producing a speech that contains incorrect facts due to poor research, and claims of slander from a rival speech writing business.

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

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

Do I Need an LLC for a Professional Speech Writing Business?

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 Professional Speech Writing Business

By starting an LLC for your professional speech writing 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.

Professional speech writing businesses will benefit from liability protection because of the risk of being sued for personal injuries, libel, and slander.

Example 1: You are hired by a client to compose a speech for their upcoming event. However, the speech was delivered late and contained factual errors that embarrassed the client. In situations like this, liability protection will limit any potential legal damages to only your business assets, protecting your personal finances from any losses.

Example 2: You are commissioned to write a speech for an important political figure. During the process, you make mistakes due to misinformation or poor research. Following this, a lawsuit is filed against your business, claiming negligence and seeking compensation for any losses incurred. With limited liability protection in place, your personal assets will be protected from this lawsuit.

Example 3: You employ an editor to review a speech before it is delivered. During the editing, the editor accidentally deletes a portion of the text, which resulted in an embarrassing blunder for your client. The client sues your business for negligence, claiming that you are liable for any losses incurred due to the mistake. With limited liability protection, only your business will be liable for these financial losses, leaving your personal assets intact if your business is found at fault.

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 Professional Speech Writing 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 professional speech writing 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

Professional speech writing 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?

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.

Professional speech writing businesses need insurance to protect themselves from unexpected liabilities and possible financial losses. Insurance ensures that these businesses are not held personally responsible for a mistake made by an employee or subcontractor, which could result in expensive lawsuits.

Common Situations Business Insurance May Cover for a Professional Speech Writing Business

Example 1: While visiting your office, a client slips on some wet flooring in the restroom, breaks an arm in the resulting fall, and decides to sue your business for failing to mark the wet floor. General liability insurance would pay for your legal defense and any required settlement.

Example 2: During a meeting in a client’s home to discuss the speech you wrote for her, you trip over the client’s dog, fall into her entertainment center, and smash a large television. General liability insurance would pay to replace the client’s damaged property.

Example 3: A competitor files a lawsuit against your company, claiming you slandered his business. While you disagree with the claim, you know you need an attorney right away. General liability insurance would pay for your legal defense.

Other Types of Coverage Professional Speech Writing 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 professional speech writing businesses should obtain:

Professional Liability Insurance

While you strive to provide quality speech writing services for your clients, there’s always a chance someone might decide you made a mistake or failed to perform. If a client sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Product Liability Insurance

The speeches you write are the products you sell. While you strive to produce well-written speeches for your clients, there’s always a chance someone might decide your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Home-Based Business Insurance

If you run your business from your home, you may need home-based business insurance to safeguard the equipment and space in your home devoted to your business. A typical homeowners insurance policy may not cover business-related items or client injuries on your property if you don’t disclose you use your home for business purposes.

You can typically purchase this coverage as part of a business owners policy (BOP).

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 and professional liability insurance.

Read our Business Insurance article for more info.

All you technically need to start a professional speech writing business is a computer and a fast internet connection, a website, and some marketing materials.

Visit our How to Start a Professional Speech Writing Business guide to learn more about the costs of starting and maintaining this business.

Ongoing expenses can include payroll, rent, and marketing.

Learn more about running a professional speech writing business.

Professional speech writers charge based on word count and the effort involved in writing a speech.

Learn more about starting a professional speech writing business.

Professional speech writers draft speeches, helping speakers effectively deliver their message to the target audiences. Politicians regularly need speechwriters, but there are other markets as well. For example, business executives often make speeches and may employ speech writers.

Since overhead costs are relatively low, profits can be significant depending on client volume and what they pay.

Learn more about starting a professional speech writing business.