How to Start a Freelance Writing Business

Start a freelance writing business by following these 10 steps:

1. Plan your Freelance Writing Business
2. Form your Freelance Writing Business into a Legal Entity
3. Register your Freelance Writing Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Freelance Writing Business
6. Get the Necessary Permits & Licenses for your Freelance Writing Business
7. Get Freelance Writing Business Insurance
8. Define your Freelance Writing Business Brand
9. Create your Freelance Writing Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your freelance writing business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

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:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

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 Freelance Writing 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.

What are the costs involved in opening a freelance writing business?

You must have a computer, a high-speed internet connection, a desk, and possibly a printer. A laptop, depending on the brand you choose and the word processing software that you use, purchasing a computer can cost up to around $1,500. Wireless internet connect costs an average of $50/month, but the cost can be significantly higher or lower depending on the wifi provider that you use and the speed of the connection that you desire. A desk and a printer are both optional purchases that can be bought at your preference. 

What are the ongoing expenses for a freelance writing business?

Writers must pay for high-speed internet. This costs between $30 and $60 per month. Computer maintenance, repairs and replacement are also necessary. Budget at least $50 per month for these expenses. Ink for a printer will likely cost $20 to $50, depending on how frequently it is used. Certain online content mills force writers to pay fees to obtain access to clients. If you take this route, you will spend between $10 and $50 or more per month to gain access to clients.

Who is the target market?

The ideal client type is an organization that requires a steady stream of written content. Examples of such clients include online content mills, newspapers, magazines, and owners of small to medium-sized businesses who need online content optimized for search engines.

How does a freelance writing business make money?

Freelance writers make money by charging clients for the creation of content. The price of a piece is usually based on cents per word. Alternatively, it is possible to charge a client a specific price for an individual project regardless of its length.

How much can you charge customers?

You can charge a wide range of prices per word or project. The exact price hinges on the client's budget, the nature of the piece, your experience level and your desire to write about the project in question. In general, a 1,000 word article will pay between $25 and $175.

How much profit can a freelance writing business make?

A freelance writer can make upwards of $20,000 or more in his first year. Stick with the business and you can earn $30,000 or more in subsequent years. Continue to add clients and you might reach the $50,000 mark or higher after several years of hard work.

How can you make your business more profitable?

If you work for an online content mill that gives clients the option of rejecting pieces, do not delete those articles. There are other online content mills where you can post such rejected articles for purchase. Some busy freelance writers decide to outsource certain projects to other writers and skim a percentage of the pay off the top as a “finder's fee” of sorts.

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 freelance writing business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

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!

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.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money 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.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

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 freelance writing business.  Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

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.

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.

Is this Business Right For You?

This business is right for an individual who has an affinity for the written word and language in general. If you are a voracious reader, enjoy expressing yourself, and have a way with words, you should give consideration to working as a freelance writer. This line of work is also ideal for those who enjoy autonomy. The typical freelance writer does not have to deal with an overbearing boss. However, freelance writers must meet tight deadlines, satisfy clients' nuanced demands, and create captivating content.

What happens during a typical day at a freelance writing business?

This individual reviews assignments for acceptance or rejection. He researches subject matter for the assignments he accepts. Freelance writers craft intriguing and informative content based on their research, personal opinions, existing knowledge, interviews, and other sources of information. Part of the day is spent interacting with clients. Another portion of the day is spent deep in thought, brainstorming content that will appeal to readers. Freelance writers are also tasked with finding new clients and searching out online platforms for writing opportunities. Most of the day is spent writing.

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

You should have an expansive knowledge base that empowers you to write insightful content about all different subjects without performing time-consuming research. However, some topics will require a considerable amount of research. If you are an excellent web sleuth who enjoys uncovering information, whittling it down to what matters the most and subsequently crafting completely unique content, you will thrive as a freelance writer. You should also have excellent time management skills as this is a deadline-based business. A formal degree in English or writing can help you gain the skills necessary to succeed at being a freelance writer; however, you can also take classes online or at a local community college if you are looking for a more affordable, less time-consuming writing education. 

It will also help to type at a fast rate of speed. The best freelance writers are able to express themselves in an efficient manner. These professionals typically type between 80 and 100 words per minute. As with writing, there are many affordable online options for training your typing skills. The bottom line is that you will be paid according to the quality and quantity of your output.

What is the growth potential for a freelance writing business?

This business has plenty of upward momentum. Freelance writers who specialize in producing online content have the opportunity to grow their business quite rapidly. As time progresses, people are consuming more and more web-based news, editorials, reviews, and other online material. Yet, there are also opportunities for traditional freelance writers who create offline content for newspapers, magazines, journals, scripts, books, etc. If you have an expansive vocabulary, a unique tone of voice, and a willingness to work hard, your freelance writing business will grow quite rapidly.

Not sure if a freelance writing business is right for you? Try our free Business Idea Generator and find your perfect idea.