It depends on where you live and how you set up. Many areas ask for a general business license or registration for any business, some add a home business permit if students come to your home, and a learning center can bring zoning and building rules. ProfitDrawer's tutoring guide says to check with your city, county and state before you take paying students, and its example budget allows $0 to $300 for registration and a local license.
Why it varies: the SBA says most small businesses need a mix of federal and state licenses and permits, that you may also need county or city licenses, and that zoning ordinances can still apply to home-based businesses.
Checklist from the guide:
- Pick a structure. Most tutors start as sole proprietors; an LLC comes with a state filing fee.
- Register your business name (a DBA) if you use a name other than your legal name.
- Ask your city or county about a general business license, and about a home business permit if students come to your home.
- Ask about extra rules for a learning center if you rent a room or open one: zoning, building and other rules may apply.
- Be ready for a background check. Many parents, schools and organizations ask for one from tutors who work with children, even where it is not a legal rule.
- Think about insurance: general or professional liability coverage.
If a school, district or program hires you as a contractor, ask what it requires of tutors. General information, not legal advice.
Source: Apply for licenses and permits (U.S. Small Business Administration) · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.