Skip to content

Do Tutors Need A Business License? Let’s Find Out!

Do You Need A Business License To Tutor?

Tutoring is an excellent way to earn extra income while helping others learn. It doesn’t matter if you love teaching children, adults, teenagers or seniors.

Tutoring is a great way to make money without having to quit your day job. In fact, tutoring can even be a full-time career if you’d prefer to spend your days with students instead of working at a desk.

But before you tutor, there are certain requirements you’ll need to meet. Among these are licensing requirements.

Licensing laws vary depending on where you live, but they require you to obtain a business license.

As a tutor, you are in charge of a student’s education. It is not only your job to give the student the best possible education but also to protect your business and your personal integrity.

One of the most important tasks is to keep your business legal and operational. You may need to establish a separate business entity to protect yourself and your personal assets.

In this post, I will give you reasons you should get a business license to tutor.

So, keep reading!

Why you should get a business license to tutor?

Before we discuss what types of licenses, you’ll need to have for tutoring, let me first tell you how much it costs to run a successful business.

According to our research, the average annual cost of operating a small business ranges from $9000 – $17500 per year.

This includes things like rent/mortgage payment details, utilities, insurance premiums, advertising expenses, taxes, etc..

So, when you consider all that, it makes sense that obtaining a business license would be beneficial.

Here’s why:

1. First off, getting a business license allows you to operate as a business owner. This means that you won’t face any fines or other penalties for breaking state regulations.

If you’re going to teach children, then open up a child care center. These centres must adhere to strict rules regarding safety standards and health codes.

If you don’t follow the guidelines set by government tutoring agencies, such as local building officials, then you could face hefty fines.

  1. Getting a business license will allow you to avoid paying fees and fines associated with opening a childcare facility.

And since you’ve already invested time into establishing your own company, why wouldn’t you take advantage of the benefits offered through licensing?

3. Another reason to get licensed is because it gives you more options for marketing your 5 star service. If you decide to advertise your tutoring skills online, you’ll need a website.

For example, you can use Google Ad Words to promote your tutoring business. Or, you could create a Facebook page to reach out to potential customers.

4. Getting a business license ensures that you comply with local and federal tax obligations. For instance, a lot of states impose sales tax on tutoring businesses.

And many cities require you to pay property taxes, which include special taxes on commercial properties.

5. But aside from ensuring compliance with taxing authorities, having a valid business license protects you against lawsuits.

Most people who offer board for tutoring services do so as an independent contractor. As part of their contract agreement, they agree to indemnify the school district against any damages or losses caused by them.

So if someone sues you over negligence or some other form of wrongdoing related to your work, you’ll be able to defend yourself using evidence obtained during your official investigation.

What is a business license?

A business license isn’t just required in order to start a new business. It also has several purposes. Some are outlined below:

• To protect consumers from unscrupulous practices within the industry.

• To ensure quality control throughout the entire process of starting a new business.

•To make sure that teachers uphold ethical standards while providing educational support services to students.

Types of licenses 

There are different licenses available depending on whether you plan to provide home-based tutoring or engage in classroom instruction.

1. Home-Based tutor licenses

As mentioned earlier, there are two main categories of licenses you may choose from when offering private tutoring services at your residence.

The most common one is called a Residential Child Care Home Operator. This type of license allows you to operate a residential daycare service.

You would only have limited responsibilities under this arrangement. They include adhering to state regulations and following all applicable laws.

You could opt to obtain another license known as a Family DayCare Provider. With this kind of license, you’d need to maintain a minimum number of children enrolled in your program each week.

2. Classroom instructional certificates

The second category includes instructional certificates. These vary based on the grade level involved. In elementary schools, these involve teaching grades K – 5.

Middle School classes range between 6th – 8th Grade levels. And highschool courses cover 9th to 12th grade.

3. Licensing requirements

Licenses come in three basic forms.

  • The first is the standard license, which requires applicants to undergo criminal comprehensive background check certificate.

You must then take a written exam administered by the licensing authority before being allowed to practise your sole trader or profession.

  • Next up is the provisional license. This gives you 90 days to complete training and pass exams. After that, you’re eligible to receive a full certification issued by the licensing agency.

However, it won’t carry much weight until you’ve passed both prerequisites.

  • We have what is often referred to as a “grandfathered” certificate.

For example, an individual who was employed as a teacher prior to 2005 can apply for such a credential taking no additional tests.

What qualifications do you need to start a tutoring business?

As I mentioned earlier, there are two different ways in which you can become eligible to receive tuition reimbursement from schools.

  • The first one requires that you pass certain requirements.
  • The second method involves applying for private placement agreements.

Here, you’ll only qualify if you meet specific criteria.

These qualifications fall into three categories: academic credentials, experience, and personal characteristics.

Let’s examine each category below:

1. Academic Credentials

First off, you need to possess either a bachelor’s degree or higher education diploma. Schools prefer students with at least a high school diploma, but not everyone has access to those opportunities.

So, whether or not you hold a college degree, make sure you demonstrate proficiency in English language arts.

2. Relevant experience

Besides possessing educational background check, you also need relevant professional experience. Some examples of this type of teaching credential include:

  • Licensed teacher certification – This would mean that you have earned a certificate showing that you’re qualified enough to teach others.
  • Certified reading specialist- You must have completed extensive training courses about working with children. It helps when you prove that you understand how kids learn and what works best for them.
  • Registered nurse – You should know all about nutrition, hygiene, safety precautions, and medical issues that affect young learners.
  • Social worker – You prove that you graduated from graduate level programs where you studied child development and socialisation.
  • Speech pathologist – You should have at least four years of specialised training regarding speech disorders that occur among children.
  • Special educator – Besides meeting graduation requirements, show proof of completing additional training necessary to become certified as a special ed teacher.

3. Personality traits

Your personality traits will help determine whether you’d be successful as a tutor.

Here is what it takes to land a job in the field.

  • You should possess good communication skills. If you don’t know how to communicate well with youngsters, then chances are you won’t succeed as a tutor. Good communicators earn more money than less skilled teachers.
  • It doesn’t matter much whether or not you like children. The important thing here is being patient and understanding while interacting with pupils.

Kids often come across as demanding personalities, and if you aren’t prepared to deal with such behaviour, then you shouldn’t bother becoming a tutor.

  • A great attitude towards learning goes hand-in-hand with patience As long as you keep an open mind and remain positive about everything that happens around you, you can expect success as a tutor.

Note: If you want to become a tutor, then you should some form of legal tutoring experience.

For instance, you could work part time as a babysitter so that you can gain practical knowledge on dealing with different ages of kids. 

4. Teaching credentials

The last thing anyone wants is to hire someone who isn’t trained to do their job.

So, before getting started, key checks out your prospective instructor’s qualifications first by looking into his/her previous employment history.

If possible, ask friends and relatives if they’ve ever worked with him or her. Also, look up online reviews pertaining to past jobs that he or she may have had.

From there, you’ll get a better idea of how trustworthy they are.

5. Education requirements for tutor licensing

In most states, online tutors must meet certain licensing requirements. These laws vary depending upon which state you live in.

However schools require that students complete specific coursework prior to obtaining any teaching certificates.

How many does it cost to start a tutoring business?

You’ve seen the ads in the newspaper, on television, and in magazines for tutoring services in your area. But how much is in it for you?

The answer is that it depends. The services you get with these companies can range from free (theory) to very costly (practice).

Sure, it may sound daunting, but there are a lot of ways to start an online tutoring business for a very little investment.

The following is a general overview of the steps to take to get your tutoring business going:

1. Decide what kind of sphere of tutoring service you want to provide. What do you have experience doing?

2. Find out if there’s demand for this type of service. Ask around about who needs help with the subject and see if any of your friends know people who need help.

There are many websites dedicated to helping you find potential clients.

3.Find out if there’s room in the market for your services.

4. Determine whether you have the skills to be successful.

5. Do research into licensing costs and other fees associated with starting up a new business.

6. Set a budget based on your projected income.

7. Establish a marketing strategy by identifying your target audience and developing a plan to reach them.

8. Start small until you’re sure you’ll make enough money to cover expenses.

9. Don’t quit before you achieve financial independence. It’s never too late to change careers.

10. Be persistent even when things seem tough. There’s no reason why you can’t overcome challenges.

How to make your tutoring business is successful?

Tutoring classes can be an effective way for students to improve their grades—but only if the tutoring sessions are effective.

If you want your tutoring to be effective, you need to make sure you’re doing what you should do to maximise the likelihood that your students see results.

While there are many types of private tutor out there, some are better than others. The difference can be explained by how they structure their businesses.

Some are just in it for the money, while others are looking to make money doing what they love.

If you are looking to start your own tutoring business and have a successful tutoring business, you should know the fact that tutoring is no longer an industry of specialists, but a business run by specialists.


The requirements for obtaining a business license vary by the location you live. Contact your state’s Department of Licensing agency for more information on the requirements.

Most states require tutor recruitment to obtain a business license before providing tutoring services. 

+ posts

A Wife, a mum and a Tutor! I am the Lead Editor at TheTutor.Link & also the Head Tutor there. I love teaching seeing young minds flourish. I also love blogging and sharing my experience on the world wide web.