As an interior designer, you know how to bring a space to life. Let us do the same for your business! Here we walk you through how to start your interior design company.
What’s an LLC for Interior Design?
Even though it’s unlikely someone will sue your interior design business, it is possible.
Having an LLC helps. LLC stands for limited liability company. This business structure makes your business a legal entity separate from you as a person. It’s defined by the state you register your business in. In the event that someone does sue you, your personal assets — home, vehicles, and bank accounts — aren’t at risk.
Should You Create an LLC for Your Interior Design Business?
You’re not legally required to create an LLC, but it does come with benefits you want to consider.
Your interior design company enjoys the credibility and formality that an LLC provides. In a competitive environment, credibility helps set you apart from others. This can be especially helpful if you’re a solopreneur because it elevates you from freelancer status. As an LLC, you also have flexibility in choosing your tax status, potentially lowering your tax bill.
In addition, there’s the liability protection. As an interior design business, you may be entering people’s homes, commercial buildings, or industrial spaces. You may be recommending paints, flooring, and furnishings that could potentially break or cause damage. In the event your client sues your LLC, your personal property isn’t at risk.
The Benefits of Registering Your Interior Design LLC
Protect Your Personal Assets
Your personal assets are protected should someone bring legal action against your business. It makes your business as its own legal entity, separate from you as a person.
Business Credibility
Having an LLC elevates your design work from freelancer to business. Having your LLC can open higher-paying opportunities. If you’re offering commercial or industry services, this credibility may make all the difference.
Subcontractor Management
Interior design projects frequently hire painters, flooring installers, etc. An LLC allows cleaner legal separation between the design firm and its subcontractors.
Tax Status Options
LLC’s default tax structure is a pass-through benefit. A pass-through tax status means your business income flows to your personal income return. You can choose to be taxed as a corporation, however, if that’s what’s best for your business. A common election is to be taxed like an S Corp.
Easy to Form and Maintain
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.
Starting your business is painless with our 5-minute form. Everything is attorney backed and approved.
- Choose your business name.
- Click Start My Business to register your LLC.
We can handle every part of your LLC formation:- Business structure designation
- Registered agent services
- Operating agreement creation
- File Beneficial Ownership Information (BOI)
- Employer Identification Number (EIN)
- Opt in to open your business account with Relay Bank
We get you up and running quick and easy, so you can start designing your dream life. See how it works. - Get any required local licenses. Many interior designers take the National Council for Interior Design Qualification (NCIDQ) Examination.
- Make sure your business is always in full compliance. We specialize in making this stress free for you.
Starting an Interior Design Business: What to Consider
It’s an exciting time! There are a lot of aspects to planning, starting, and running an interior design business. Here are some of the first things you want to consider. We’re here to help you with tips and guidance specific to your industry.
Decide Your Business Structure
You want to first decide on your business structure. Weighing the benefits of each helps you know which is right for you.
When you’re first starting out, you may operate as a sole proprietor. The drawback is your personal assets aren’t protected in the event someone sues you. If you want to grow your business, it’s time to look at forming an LLC.
An LLC also gives you flexible taxation options. Your business income can pass through to your personal tax return, or you can change your tax status to leverage the benefits a corporation structure provides. If looking for outside funding, including credit with your vendors and suppliers, you want to form an LLC.
As an interior designer, you are likely hiring subcontractors and perhaps buying materials. These activities are easier when you’re an LLC or corporation. You want to consider all aspects when deciding on your business structure. We can help!
Name Your Business
A business name is important. As an interior designer, you may want to use your personal name. You can still do this after forming an LLC. This can be ideal if you’re well-known in your circles — whether you’ve made a name for yourself simply through reputation or press coverage. On the other hand, coming up with a new name for the business can set you apart from just an independent contractor or freelancer.
Creating a business name can feel overwhelming. Start simple. Brainstorm names that reflect the brand you want to create. Do you have a niche? If so, perhaps the name can convey what it is.
When you have a few you like, you want to make sure no one else is using it. Check your state's business registry for name availability. You can usually do this online through your state's Secretary of State website or business registration portal. Search the federal trademark database. Do some internet and social media searches to see what’s out there, and don’t forget to see if your desired domain is available.
You’re set to file your LLC once you have your structure and name.
Create a Business Plan
There is a lot of talk about whether or not creating a business plan is worthwhile. We believe it is. Remember that it doesn’t have to be very long. It just needs to include your vision, strategies, financial projections, and operational specifics. Writing these aspects down gives you clarity.
Several different business plan formats exist. Nearly all of them include some variations of these sections:
- Executive summary
- Company description
- Market analysis
- Organization and management
- Products and services
- Marketing and sales strategy
- Funding needs and requests
- Financial plan and projections
A well-written business plan gives you both the high-level view and the down-in-the-details view of your interior design business. That’s the benefit of writing one. You get to think through both.
Define a Niche Based on Your Expertise
Will you perform interior design services for residential, commercial, or industrial spaces? If you do all 3, how else can you position your niche? Do you only work on premium accounts or will your services be more affordable? Is there a certain style you specialize in?
When you make it clear what you offer and to whom, you stand out in a competitive field. You’re more easily able to connect with potential clients who are looking for exactly what you offer. A niche lets you focus and connect. You’re also more referable because people will remember you focus on solving a specific need.
They’ll hire you for your creativity, innovative design skills, communication abilities, and refreshing collaboration. They’ll retain and refer you to others when you get the results they want.
Create a Compelling Brand
As an interior designer, you have style. It’s time to use that talent to position your company. You know better than most how color and aesthetics determine how someone feels when they come into space. It’s time to do the same for your business.
It’s hard to do for yourself, so you want to consider hiring a brand strategist. Communicating your expertise and niche comes through in your marketing strategy and sales process. It all starts with your brand.
Elements of a strong brand include:
- Brand Promise
- Unique Value Proposition
- Brand Personality
Your brand personality includes your messages and visual identity. A strong brand positions you out of the crowd as the one to choose.
Research Your Chosen Market and Target Audience
When we think of a market, we often think of location. This is one type of market, but it’s not the only one. A market segment can also be your target audience. An interior designer is not bound by geography. Depending on your services, you may be able to consult on designs virtually.
Knowing where you want to work and with whom you want to work are two important aspects of running your business. If you’ve written your business plan, this information is there. As you go along in your journey, you can adjust. Starting out in one direction helps guide your marketing efforts and sets you up to evaluate your progress.
Decide on Certifications
There isn’t a mandatory license requirement to be an interior designer. There are, however, recommended certifications. TheCouncil for Interior Design Qualification (CIDQ) offers the NCIDQ Certification, for instance. There is also theCertified Interior Decorators International (CID) Certification.
If you want a niche in sustainable design, there are organizations committed to green building, including the US Green Building Council. This is the organization that awards LEED certifications to buildings.
Build a Strong Professional Network
Nearly every business benefits from cultivating a strong network. For you as an interior designer, it may be even more important.
You will want to build a community of potential clients and one of other designers. They can send clients your way if your niche differs from theirs. Other interior design entrepreneurs can also be a wealth of information on how to run a business. Everyone learns from others’ mistakes and successes.
If you plan on hiring subcontractors, you want to know people who can execute your designs flawlessly. Think about networking with painters, flooring companies, furniture stores, and others. If your goal is to use local people, networking is crucial.
Several interior design professional organizations exist, including the American Society of Interior Designers and the International Interior Design Association.
Know Your Materials
Technology is changing daily, and that includes home-building and design materials. Many are prioritizing sustainability, so you will want to be up to date on the latest options. Knowing what materials are available, which ones are the best, and how do you procure them are all important aspects of running a successful interior design business.
As an interior designer, you may include specs for items. Your knowledge of solutions that meet your clients’ needs can set you apart from the rest. You can also more easily overcome potential supply chain challenges if you know trusted vendors who offer what you need.
Determine Your Pricing
This is where market research and analysis gives you insights. Find out what other firms are charging for projects. Every market sets its own pricing levels. If you are going to solicit local clients, knowing who they generally hire lets you know your competition. If you’re going to take on clients regardless of location, the same applies, but you can focus more on what your target audience is willing to pay.
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AUTHOR
LLC Attorney Team
Welcome to LLC Attorney, where our mission is to make the process of forming and maintaining your LLC as smooth and stress-free as possible. Our team is a dedicated group of professionals with a shared passion for helping businesses thrive.
