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Education is an essential service that's in high demand, with opportunities in tutoring, online courses, college prep, coaching, and corporate training, all of which cater to lifelong learners. This sets your business up for recurring revenue, which helps to enhance the stability of your business. Forming an LLC for your business protects your personal assets, provides tax benefits, and establishes a strong legal structure. Whether you provide in-classroom instruction or online content or live coaching, having the right legal foundation ensures greater stability. Attorney-backed and approved, we’re here to guide you through the business formation process.
There are different types of education services businesses. From consulting agencies and tutoring to educational seminars and everything in between, we’ll guide you on what you need to know.
An LLC, or Limited Liability Company, is a business structure that legally separates your company from your personal assets. If you provide education services, this separation ensures that your home, vehicles, and bank accounts remain protected in the rare event of a lawsuit.
Operating as an LLC in the education sector offers crucial protections against student safety, data privacy, and educational malpractice risks. Each state has specific guidelines for LLCs, but the advantages — ranging from asset protection to potential tax benefits — make it a wise choice for any education service provider.
This guide explores key considerations for LLC formation, including asset protection and common mistakes to avoid.
Becoming an LLC isn’t mandatory. If you’re a one-person company, you could also operate as a sole proprietor. Before you make that decision, you want to weigh the pros and cons.
First, an LLC gives you limited liability protection. If you teach from a building where people come to you, you definitely want liability protection (and insurance!). If someone falls and trips on your property, they could file a lawsuit. Even if you or your staff teach at other venues, the risk is reduced, but it's still there. And in the education field, where assessments can sometimes lead to disagreements or claims of discrimination, it's crucial to protect yourself.
An LLC makes your business as its own legal entity, separate from you as a person. This protects your personal assets if your business is sued.
As an LLC, your company is viewed as more credible. It’s a legitimate business. If you’re going into schools or a corporate environment, they will want to hire a company that has legal protections and is formally set up.
As an LLC, you have tax flexibility! Its default tax status passes your earned income through to your personal income return. You can also choose to be taxed as an S-Corp or C-Corp, however, if that’s what’s best for your business.
An outside entity is more likely to fund an LLC than a sole proprietor. The limited liability structure offers them (in addition to you) some protection from potential liabilities.
We are with you every step of the way. Our process makes starting an LLC quick and easy. And we help you stay compliant, freeing you to focus on your services. Just click Start My Business, and we’ll take it from there.
Teaching is a gift, and learning should never stop. Whatever your niche, your education services LLC can thrive when a few tried-and-true actions are taken.
Education services is a broad term that includes various types of businesses. Each one comes with its own set of risks and requirements.
Every state requires teachers to have at least a bachelor’s degree to be certified, and most only allow certified teachers to work in classrooms. If you want to teach in a state other than the one where you got your licensing, check to see its teacher license reciprocity status.
States and localities may have certification requirements for companies providing educational services.
Weighing the benefits of each business structure can feel overwhelming. That's why we’re here!
Many new business owners who are a one-person show start as a sole proprietor. There’s nothing to file with the state, so it’s easy. The downside, however, is your personal assets aren’t protected in the event someone sues you. While that seems implausible, it can happen. And if it does, you want to protect your personal assets. There’s more to an LLC than protection.
An LLC also gives you the option to choose your company’s tax status. Your business income can pass through to your personal tax return, known as “pass-through.” You can opt to have your LLC taxed like a corporation. If looking for outside funding, including credit with your vendors and suppliers, you want to at least form an LLC.
Forming an LLC can increase your sense of credibility and professionalism. As an education services company, particularly when dealing with schools, universities, or other educational institutions, credibility is important. It demonstrates that the company is a legitimate business entity.
Naming your business is a critical step in the process. A name for your education services LLC should be simple, memorable, and reflect your brand values. As an education services provider, your name needs to instantly connect to your audience in a credible, safe way.
If you're a one-person company and your reputation precedes you, using your personal name could be the way to go. If not, or if you want to build your business bigger than one person, you’ll want to think of a new name.
Coming up with a business name can feel daunting, but we’re here to help.. Brainstorm names freely. Do you have a niche? Try some names that speak to it. Do some internet searches to see what’s out there.
When you have one you like, it’s time to see if anyone else is already using it. Check your state's business registry, which is usually online at your state's Secretary of State website. Search the federal trademark database. Check social media to see what’s out there, and remember to see if your desired domain is available.
You’re set to file your LLC once you have your business structure and name.
Is creating a business plan for your education services company worthwhile? We say yes. Even if you’re not looking for outside funding, planning your business on paper forces you to reflect and make some decisions. A business plan doesn’t have to be long. You want to write your vision, strategies, financial projections, and operational specifics.
Nearly all business plan formats include variations of these sections:
A well-crafted business plan gives you a high-level view and a detailed view. You get to think through both and get clarity, which is why we recommend creating a business plan. Use our business plan template to establish a strong roadmap for your business.
In the education services industry, curriculum is the foundation of your services. Invest time and resources into developing a comprehensive, engaging, and up-to-date curriculum that aligns with the latest educational standards and best practices.
Consider collaborating with subject matter experts, experienced educators, and curriculum developers to create a well-rounded and effective program. Once you have your program, you can then more effectively market it to those who can use it.
The quality of your instructors can make or break your business. Your reputation will quickly spread. Make it a priority to recruit and retain highly qualified, passionate, and experienced instructors with subject matter expertise and excellent teaching skills. Everyone must be genuinely committed to the students’ success. If your teachers are good, your reputation will follow.
Provide ongoing professional development opportunities to ensure your instructors stay current and continuously improve their teaching methods. If you can’t provide the development opportunities, think about how to ensure your instructors have what you need.
This aspect greatly depends on the type of teaching your company offers. Measuring student progress and tracking outcomes are more essential in some areas than others.
Develop assessment tools and data-driven tracking systems to evaluate student and instructor performance. Determine how you identify areas for improvement. If you go into a corporate setting, know how their HR department tracks success so you can get feedback.
Tracking outcomes can demonstrate your program effectiveness. This data can also help you refine your curriculum and teaching methodologies for better results. Your marketing and sales strategies can be greatly informed by your students’ success.
Speaking of marketing, your first step is to identify your target audience (e.g., students, parents, schools, corporations). You then tailor your messaging and promotional activities accordingly. The goal is to connect with someone who needs your offerings.
Your marketing changes whether you’re a direct-to-consumer company or direct-to-business one. At the end of the day, however, you’re connecting with people. The education services market is competitive. How will you stand out?
Do you need a website? Social media presence? If you’re going into the corporate space, know what type of company needs you. Is it a company that is struggling to retain employees? Perhaps it’s one who wants to offer your services as a non-compensatory benefit.
Building strategic partnerships with educational institutions, industry associations, or government agencies can lend credibility to your business. Your network will also open doors to new opportunities.
Pursuing relevant accreditations or certifications can further validate the quality of your programs and increase their perceived value.
Knowing how you’ll deliver your courses is just as important as defining what you teach. Are you teaching online, in-person, or both?
Even if your main offerings are in-person, you may want to consider developing e-learning modules, virtual classrooms, or mobile apps to complement your traditional offerings. This not only expands your reach and accessibility but also caters to tech-savvy students.Online platforms can facilitate personalized learning experiences, enhancing the overall learning experience.
If your services will take place in your own space, you need to account for the technological set-up and costs. If you go into other facilities, offices, or buildings, you need to figure out how to have (or get) the technology there.
Cultivating a supportive and engaging learning community can significantly enhance the success of your education services. Encourage peer-to-peer interactions, facilitate study groups, and create opportunities for students to connect and learn from one another.
This fosters a sense of belonging, promotes knowledge sharing, and improves overall satisfaction. Consider offering mentorship programs or alumni networks to provide ongoing support and guidance to your students, even after they complete your programs. Keeping in touch with students can also give you future service ideas. As they encounter challenges, your company can build a curriculum designed to help.
This is a great way to get referral business. It’s also ideal for testimonials and social proof that show the direct impact of your services.
Our 5-minute process makes it quick and easy to form a business in your state.
Education businesses must navigate government regulations, accreditation requirements, student engagement, different student learning styles, and staff turnover. Forming an LLC for your education-based business is a strategic move that offers legal protection, tax benefits, and credibility.
Taking the time to structure, plan, and build your education business the right way will help you to avoid costly mistakes, ensure your business remains legally sound, and set your services up for sustainable growth.
