How to Start an LLC for Sleep Consulting

Many sleep consultants get intimidated by the technicalities behind starting a business. In fact, it stops many people from getting into the industry – but starting out is a whole lot easier than many realize! An LLC, (or Limited Liability Company) might sound a bit intimidating at first, but I promise it’s simpler than you think—and so worth it! Not only does it protect your personal assets, but it also gives your business a professional edge. So, let’s walk through how to start an LLC for sleep consulting, step by step.

But first, what IS an LLC (and why do you need one)?

First things first—what exactly is an LLC? Think of it as a safety net. When you form an LLC, it separates your personal finances from your business. This means that if anything unexpected happens, like a legal issue or debt, your personal assets (like your home or savings) are protected. For a sleep consultant, this is especially important because you’re dealing with clients and their little ones. An LLC gives you that extra layer of protection, so you can focus on what you do best—helping families without worrying about the “what-ifs.”

Step 1: Choose a Name for Your LLC

Now comes the fun part—picking a name! Your business name is like your brand’s first impression, so make it something that reflects who you are and what you do. It should be unique and resonate with the families you’ll be helping. For example, if your name is something like “Sweet Dreams Sleep Consulting,” it immediately tells people what you offer. Before you settle on a name, make sure it’s not already taken. You can usually do this by searching your state’s business registry online. You’ll also want to check that the domain name (your website address) is available if you plan on having an online presence (which I highly recommend). 

Step 2: Register Your LLC

Once you’ve picked the perfect name, it’s time to make it official. The process of registering your LLC can vary a bit depending on your state, but generally, it involves filing paperwork with your state’s business office (often called the Secretary of State). You’ll need to file something called the Articles of Organization, which is just a fancy term for the document that officially creates your LLC. It typically includes your business name, the names of the LLC’s owners (you!), and your contact information. There’s usually a small fee for this—anywhere from $50 to $500 depending on your state. But once it’s done, you’ll be the proud owner of your very own LLC!

An Alternative Step 2: Consider a DBA If an LLC Isn’t for You

If setting up an LLC feels overwhelming or unnecessary right now, don’t worry—you have another option! You can start your sleep consulting business under a DBA (Doing Business As), which is a simpler and less expensive route.  A DBA is essentially a registered name for your business that isn’t your own personal name. It’s perfect if you want to operate under a business name but don’t feel the need for the legal protections of an LLC just yet. In many places, getting a DBA is as easy as going to your town clerk’s office and paying a small fee, usually around $20. Even easier? If you decide to use your own name for your business, like “Lisa Smith’s Sleep Consulting,” you might not even need to file a DBA at all! This can be a great option if you’re just starting out and want to test the waters without diving into all the formalities. You can always upgrade to an LLC later as your business grows and you feel ready.

Step 3: Get an EIN (Employer Identification Number)

An EIN is like a social security number for your business.  You’ll need it to open a business bank account, file taxes, and hire employees if you decide to grow your team down the line. The good news is, getting an EIN is quick, easy, and free! You can apply for one directly through the IRS website. 

Step 4: Open a Business Bank Account

With your EIN in hand, you can now open a business bank account. This step is crucial because it keeps your personal and business finances separate. Trust me, when it comes time to do your taxes, you’ll be so glad you did this! Plus, having a dedicated business account makes you look more professional to clients and partners. It’s all about building that credibility from the start.

Step 5: Understand Your State’s Tax Requirements

Depending on your state, you might need to collect sales tax for your sleep consulting services. Many states don’t require this, but here’s the good news: you don’t have to worry about it. Your accountant will guide you through the process and handle the details. A quick conversation with a local tax advisor will ensure you’re compliant and help you take advantage of business deductions, such as for home office expenses, marketing, and even that new computer for tracking client sleep logs.

Step 6: Get Business Insurance for Sleep Consultants.

While your LLC safeguards your personal assets, business insurance is essential for protecting your business. Think of it as an additional layer of security. Start with professional liability insurance, and consider adding general liability insurance as well. It’s crucial to obtain insurance specifically tailored for sleep consultants to ensure comprehensive coverage across all aspects of your work. Be cautious—many insurers may offer generic “consulting” insurance, but this often doesn’t provide the specialized protection you need.

Step 7: Start Marketing Your Business!

Now that the legal stuff is sorted, it’s time to spread the word! Creating a professional website, setting up social media profiles, and networking within your community are all great ways to get your name out there. To stand out, use your Unique Selling Proposition (USP) in your marketing and offers. Highlight what sets you apart—whether it’s specialized training, a unique approach, or exceptional results. Make sure potential clients understand why you’re the best person to help them with their baby’s sleep challenges. Incorporate your USP into your website, social media posts, and promotional materials to clearly communicate your value and attract clients.

How to Start an LLC for Sleep Consulting:

The Easy Version

Want all the legal requirements done for you? Many of our sleep consultant graduates use Bizee, a company that helps you file your LLC and make the process super easy. They also send you reminders for when/if you need to file annually or create an annual report. 

How to Start an LLC for Sleep Consulting: Remember This

While starting an LLC might seem like a big step, it will set you up for success in the long run and is a whole lot simpler than it sounds. You’re setting up a strong foundation for the future growth of your business! And remember, you don’t have to do it all alone – there are so many resources and professionals out there who can help guide you through the process.  And remember, the IPSP sleep consulting program covers everything you need to know not just about becoming a sleep consultant – but also how to start an LLC for sleep consulting! In the course, we cover everything from setting up these legal documents, insurance, marketing, to getting your first client! If you’re looking for an all-inclusive program, check out the course right here!