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How to Start a Tutoring Business

Tutoring is one of the cheapest businesses to start: your knowledge, a laptop and a quiet place to work. Growth comes from results families can see — better grades, test scores and confidence — and from referrals. Decide early whether you'll stay solo or build a team of tutors.

Reviewed November 5, 2026 · Sources linked inline

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a tutoring cost worksheet →

SBA 7(a) loans in this industry

Exam Preparation and Tutoring (NAICS 611691): 187 loans approved in FY2024–FY2026. Median loan $150,000; middle half $74,000–$320,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Exam Preparation and Tutoring (NAICS 611691)

Nationwide: 9,820 employer establishments (2023). The Census Bureau doesn’t publish a count of businesses without employees for this industry.

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Reliable laptop, webcam and headset
  • Video meeting and digital whiteboard tools
  • Current textbooks and official practice tests
  • Scheduling and invoicing software
  • A quiet, professional space for sessions

Licenses and registration

  • Register the business or a trade name (DBA) with your state.
  • Many families and schools expect a background check if you work with minors; some districts and programs require one.
  • Check whether your city requires a general business license for home-based work.
  • If you plan to hire tutors, set up payroll or contractor agreements properly before the first hire.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • Professional liability
  • General liability for in-person sessions
  • Abuse and molestation coverage if you or your staff work with minors

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Software subscriptions
  • Materials and practice tests
  • Insurance
  • Travel (in-person)
  • Payment processing fees
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them.

Common mistakes

  • Charging by the hour with no packages or commitment
  • No cancellation policy
  • Teaching every subject instead of a clear specialty
  • Not tracking and sharing results
  • Meeting minors without a clear safety policy

Finding customers

  • Referrals from teachers and school counselors
  • Parent groups and community boards
  • Free first session or assessment
  • Google Business Profile and reviews

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources