The Types of Consultants Who Can
Start a Consulting Business

Leverage our corporation and LLC formation packages to start a successful consulting business as:

  • Business Consultants
  • Marketing Consultants
  • Insurance Agents
  • Management Consultants
  • Design Consultants
  • Legal Consultants

  • Coaches & Advisors (Life, Career, etc.)
  • Educational Consultants & Tutors
  • Accounting & Bookkeeping Consultants
  • Independent Sales Representatives
  • Social Media Consultants
  • Therapists & Counselors

Whether you want to be a marketing consultant, an HR consultant, or a tax consultant, we can help you kickstart your business.

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Why You Should Learn How to Start a Consulting Business?

If you have a high degree of expertise in a certain field, you can use that knowledge to build a successful consulting business.

Whether you are trying to change careers or are in-between jobs, learning how to start a consulting business is a great way to make use of your skills.

In return, you will build a thriving business where you charge as much as $500 just for sharing your knowledge with others.

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What Do You Need to Start a Consulting Business?

Small business owners often think that you need fancy office space, special credentials, and access to big potential clients to start a consulting business.

But that’s not true.

Consulting refers to giving expert advice to people working in a specific field.

Trying to figure out how to start a consulting business? Here are the steps you need to take:

Identify Your Specific
Niche to Target

This is what the most successful consulting businesses have in common.

And the best way to define your niche is to answer three questions:

  • Which industries are you the most familiar with or have experience in?
  • What do people in those niches want and need? What are they struggling with (their pain points)?
  • What skills and knowledge do you have? Which problems can you solve for a specific group of people?

The overlapping answer to these questions is the perfect niche for your new consulting business.

You need to figure out your niche value proposition.

Identify Your Ideal Client-1

Identify Your Ideal Client

Who will pay for your consulting services?

This is one of the crucial questions you have to answer as you determine how to start a consulting business.

  • Which organizations in your target niche need consulting services?
  • What companies have you worked with in the past?
  • Who are the key decision-makers in your target companies?
  • What are the needs of these organizations, and how can you help them?

For example, Nicole Campbell is a legal expert who only works with philanthropic and nonprofit organizations to strengthen their organizational structures.

She used her experience in the social sector to identify the legal and organizational needs of nonprofit organizations and position herself as a leading consultant in that niche.

Offer a Compelling
Value Proposition

As a consultant, your job is to offer value.

You need to assess your strengths to figure out what exactly you can help people solve or achieve.

People will pay you to consult about:

  • How to do something they can’t do on their own.
  • How to achieve their desired results faster than they could.
  • How to become successful in a specific niche/industry.

You need to position your services as a faster, easier, cheaper, or better option than your potential client doing it on their own, because of your expertise and resources.

Set Prices for Your Consulting Services-1

Set Prices for Your Consulting Services

The next thing to pay attention to as you learn how to start a consulting business is the cost of your services.

How much will future clients pay to access your services?

The fee you charge for your services as a consultant depends on several factors, such as:

  • How difficult is the problem you aim to solve
  • Your experience and level of expertise in your niche
  • The impact the results will have on your client’s operations
  • Time and resources you invest to get the desired results

When setting your pricing strategy, ensure your fees are in line with the market rates so as not to miss out on prospective clients.

Examine what other consultants are charging for similar services and use that as a guide for your professional fees.

Create a Marketing Plan

to Attract Potential Clients

To build a profitable consulting business, you need to create a proven process to attract, engage, and convert potential clients.

You can leverage multiple channels and marketing strategies to get there, including:

A robust marketing plan will help you reach people who are willing to pay for your consulting services.

Form a Solid Legal
Business Structure

To start a consulting business legally, you need to choose an entity type and file the required documents to register it.

Some of the most common business structures you can choose as a consultant include:

Registering your consulting business and acquiring business licenses and permits can be a tedious process.

However, GovDocFiling makes it easy for you to complete the legal paperwork and start your consulting business.

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How to Form Your Consulting

 Company in 10 Simple Steps

Wondering how to start a consulting business?

Here is everything you need to know as a consultant – from choosing a niche to completing legal requirements, attracting new clients, and building a strong client base.

Now that you understand how to build a consulting business, it’s time to launch yours.

Let us take care of all of the complicated legal requirements and also guide you through the additional services you will need to successfully launch and run a consulting business.

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Why Choose GovDocFiling to

Launch Your Consulting Company?

We are entrepreneurs – just like you.

We’ve been where you are, and we know exactly what you need to start a consulting business and which mistakes to avoid. Oh, and what you DO NOT NEED, things that many other services will upsell you on.

Regardless of the consulting niche you choose and the legal business entity type you decide on for your new company, we can help you get started.

Let our experts take care of the boring but important paperwork to process your business formation application in a quick, easy, and cost-effective way.

When you start your consulting business with GovDocFiling, you’ll get:

Launch your new consulting business the right way with GovDocFiling.

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Frequently Asked Questions

What is an example of a tax ID number?

A federal Tax ID Number is an identification number used by the Internal Revenue Service (IRS) to administer tax laws. This number is issued either by the IRS or Social Security Administration (SSA). A business Tax ID number is required on tax return forms.

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How do I get an EIN application?

An Employer Identification Number is a nine-digit number that identifies your business. It works much the same way your social security number does. If your company has employees, is a corporation or partnership, has a Keogh Plan or fits one of several other situations, it must have its own EIN.

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How many EIN numbers can I have?

As a business owner, you probably know your company needs an EIN (or Tax ID Number) issued by the IRS for tax purposes. But what if you own multiple businesses or operate different divisions of the same entity?

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What is the purpose of a tax ID number?

Your business is going to need to file income taxes. The Internal Revenue Service uses Tax Identification Numbers to distinguish between individuals, business, and nonprofit organizations, but business tax ID numbers should be distinct from your personal federal tax ID number.

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What does it mean to have a tax ID number?

For the IRS to conduct its business, it must have an easy way to identify each individual and business. To do this, they require each individual and business to have a tax ID number.

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How does an SSN differ from a tax ID?

A social security number (SSN) is a tax code used by an individual, while a tax ID is a nine-digit tax code for a business entity. For a business entity, a tax ID is usually called an EIN.

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What is a DBA?

If you’ve ever considered working for yourself, or starting your own business, you may have wondered: what is a DBA? Is a fictitious business name the same as a DBA? What are the benefits of a DBA to my business and myself?

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Can a DBA be filed for all business types?

Each type of business entity has clear advantages and disadvantages. Can a DBA be filed for all business types? In most cases, yes; but understanding what a DBA is and what it’s limitations are will help you decide if it’s worth

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How many DBA names can I register?

DBA application filing is a process overseen by state DBA laws and local government, protecting the public from nefarious business owners. DBA is an abbreviation for “doing business as,” and is also referred to as a fictitious name or trade name.

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Do I need a DBA?

If you’ve ever considered freelancing, or starting your own business, you should take a few moments to answer this very important question: Do I need a DBA? Not every small business owner needs to pursue DBA application filing, but

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Are any words prohibited in a DBA name?

DBA is an acronym that stands for “doing business as.” You may be wondering “do I need a DBA?” If you intend to do business using a name other than your legal business name, you need a DBA. DBAs are common for sole proprietors or partnerships that do not want to use the owners’ legal names to do business.

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If you’re starting a business, there are more then a few abbreviations you’ll need to remember. Filing a DBA application, or applying for an EIN, are two common steps for new business owners. However, they are not the same thing, and as a business owner you should know the difference.

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What is an LLC?

A limited liability company, commonly referred to as an LLC, combines the taxation benefits of a partnership with the limited liability of a corporation. Instead of partners, LLC business owners are called members, and there can be several, or a single member.

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What are the benefits to filing for an EIN as an LLC?

A limited liability corporation is one in which the members aren’t personally responsible for any company liabilities or debt. Limited liabilities have the protections of a corporation but the flexibility of a partnership. If your business is listed as a limited liability corporation, you can benefit further by applying for an Employer Identification Number.

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What’s the difference between an LLC and a corporation?

The fine print that separates a limited liability company (LLC) from a corporation can be overwhelming for new business owners or entrepreneurs. While the minutia of these details might be best suited for a legal advisor or accountant, the broad differences are fairly easy to understand, and they might be enough to help you make a judgment

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What happens if I apply for the wrong LLC?

Limited Liability Companies (LLC) are popular business structures because they offer personal liability protection for members and don’t have all the formalities that corporations do. LLCs also enjoy pass-through taxation, which means the company doesn’t pay federal income taxes; instead,

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What legal documents do I need to start an LLC?

For entrepreneurs thinking about starting their own business, forming an LLC is an ideal option, as such an entity provides the owners protection from lawsuits, business debts and other business indiscretions. However, in order to obtain that protection, there are a number of documents that the business owner or owners must file with the state government prior to conducting business.

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What are the differences between a partnership and a Limited Liability Company?

A Limited Liability Company is a legal entity all its own, while a partnership is owned by two or more people who share legal responsibility of the business entity. In a partnership, the business does not possess a legal identity outside of the business owners. A Limited Liability Company offers more flexibility in terms of operations and personal asset protection.

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What is a C-Corporation?

A C-Corporation is just anther way of saying corporation. It means the same thing. Corporations are incorporated business entities that file Articles of Incorporation with the Secretary of State or a similar government agency.

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Can a C-Corp have multiple owners?

There are certain C-Corp requirements to meet whether you want to start a corporation with one shareholder or dozens. It is certainly possible to apply for a C-Corporation EIN with multiple owners, and when forming a C-Corp in this manner, there are a few points to keep in mind.

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Why is a C-Corp taxed differently than an LLC or S-Corp?

Unlike other business structures, C-Corp taxation is significant in that corporations are taxable entities. Corporations are taxed like an individual and contribute according to corporate income, and then again on shareholder tax returns. This is commonly called ‘double taxation’.

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What is an S-Corp?

S-Corporations, sometimes called S-Corps, can be useful ways for business owners to avoid what’s called “double taxation”, while also protecting shareholder assets from personal liability. It’s a mix of advantages drawn from other types of business entities; and it isn’t nearly as complicated or time consuming as you might think to establish.

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How do I file to become an S-Corporation?

Before we dive into how to file to become an S-corporation, let’s take a look at what an S-corporation is, exactly, and why you may want to establish this type of business entity for your company. S-corporations are similar to partnerships, or sole proprietorships, at least in terms of how the company will affect you financially.

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What is a disqualified S-Corporation?

There’s No Such Thing as a Disqualified S Corporation. Luckily, S corporation disqualification is more of an urban legend than fact. In 2010, Congress attempted to pass a measure that would have disqualified some S corporations, primarily small businesses, from using S corp tax structures when filing.

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