How to Start a Translation Agency

Start a translation agency by following these 10 steps:

1. Plan your Translation Agency
2. Form your Translation Agency into a Legal Entity
3. Register your Translation Agency for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Translation Agency
6. Get the Necessary Permits & Licenses for your Translation Agency
7. Get Translation Agency Insurance
8. Define your Translation Agency Brand
9. Create your Translation Agency Website
10. Set up your Business Phone System

We have put together this simple guide to starting your translation agency. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourTranslation Agency Name Generator

我f you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

我t's very important to secure your domain name before someone else does.

What are the costs involved in opening a translation agency?

The costs of opening a translation business are minimal, since it isn’t necessary to rent office space. You’ll need to invest in office furniture, good lighting, a computer with high-speed internet service and a good all-in-one printer. Building a library of reference materials such as dictionaries and grammar books is also a wise initial investment. There is also professional translation software available, the cost of which ranges from between $200 and $1000.

What are the ongoing expenses for a translation agency?

Ongoing expenses for a translation business include:

• 我nternet connection
• Telephone
• Office supplies
• Payment for freelancers
• Advertising and promotions
• Continuing education and certification in a greater number of areas of expertise
• Maintaining current research and reference materials

Who is the target market?

Preferred clients are people able to effectively communicate their needs as well as negotiate and adhere to the terms of a contract for translation services.

How does a translation agency make money?

A translation business makes money by charging a fee for translating various types of documents. Depending on the length and complexity of the document, fees may be either by the hour or by the assignment.

How much can you charge customers?

A survey of the American Translators Association concluded that the average freelance translator makes approximately $64,000 per year. While there is no set rate, it’s estimated that 11 cents per word is an approximate industry average. Many translators choose to charge by the page, rather than the word. The rate for translating a document depends on a number of factors including the word count or length of the document, the complexity of the information, and how much research is required. Another factor is how quickly the client needs the document, with rush jobs generally commanding a higher price.

How much profit can a translation agency make?

Translators can earn from $30,000 to $80,000 per year, depending on experience, location, and the volume of work available. As a sole proprietor working alone, your business is confined to your own language skills and areas of expertise. As the owner of a translation agency, you can either hire employees or contract with other freelancers with experience in other languages and specialties, such as commercial, technical, medical or legal documents.

How can you make your business more profitable?

提供本地化服务,其中包括using local idioms and creating visual content to accompany the translated information, is one way to make your business more profitable. International businesses require information about their goods and services in the languages of every country in which they hope to conduct business to succeed. There are many different niches in the translation industry, including business, education, government, and the healthcare industry. Specializing in specific types of documents such as business contracts, educational content, medical transcripts, or advertising materials can substantially increase your profits. Many translators also expand their operations to providing subtitles for audio/visual multimedia presentations. The worthy goal of any translation business is making valuable information available to the greatest number of people possible.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your translation agency is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

我n order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

记录你的各种费用和公司的来源ome is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

A translation agency requires a business license. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.

我n addition, certain local licensing or regulatory requirements may apply. For more information about local licenses and permits:

• Check with your town, city or county clerk’s office
• Get assistance from one of the local associations listed inUS Small Business Associations directory of local business resources.

Service Agreement

Translation businesses should consider requiring clients to sign a service agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership.Here is an example service agreement.

Recommended:Rocket Lawyer makes it easy tocreate a professional service agreementfor your translation business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

另一个notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

我s this Business Right For You?

This business is ideal for those who speak more than one language and have a desire to contribute to achieving greater understanding and cooperation between people of different cultures.

What happens during a typical day at a translation agency?

The day to day activities of a translation business owner might include:

• Negotiating contracts with clients and other translators
• Translating documents
• Maintaining business records
• Preparing invoices
• Bookkeeping and accounting
• Utilizing reference materials
• Seeking out and contacting potential clients

What are some skills and experiences that will help you build a successful translation agency?

Some of the skills essential for building a successful translation business are:

• Extensive knowledge of another language
• Translation skills obtained through a certification program
• Superior interpersonal communication skills for negotiating contracts and clarifying clients’ requirements
• Time management skills for meeting deadlines demonstrated
• Certification to demonstrate proven translation skills
• Cultural awareness

What is the growth potential for a translation agency?

As globalization continues to increase, the growth potential for translation businesses increases as well. The need for interpreters and translators is projected to grow 29% within the next seven years, much faster than other occupations. Immigration, multi-national businesses, and the internet have all contributed to an increased awareness of our interconnectedness. Some of the largest translation agencies have offices all over the world and employ thousands of translators.