Sounds like a ‘simple’ question, but there is a very convoluted, in-depth answer needed . . .
First, research the service region you’re considering opening up your business to serve and determine if that region is ALREADY saturated with LSAs who are endeavoring to find work . . .
Next, it would be in your best interest to jot down all of the expenses associated with performing the services you provide within your service region to determine a baseline operating cost. Then, at that point, you can calculate the fees that will generate a net profit to determine if you’ll have a Profit or sustain a Loss performing these types of services.
There are many items to consider within your Overhead calculations. Here are a few to get you started:
• telephone expenses
• office equipment and furniture
• rent and utilities
• paper
• toner
• binder clips
• pens
• stationery and supplies
• travel costs to & from signer locations
• travel costs to & from FedEx/UPS/USPS, etc.
• business insurance
• business-related meals and entertainment
• professional association memberships
• annual background checks
• annual certification expenses
• legal and accounting fees
• advertising and marketing costs; i.e., Google ads, yellow pages ad, website, business cards, or brochure
Your individual overhead would also include the cost of fringe benefits; i.e., medical insurance, disability insurance, retirement benefits. Also, remember to include income taxes and self-employment taxes.
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If calculating all this accurately seems to be a bit overwhelming, reach out to your tax advisor and ask for guidance in this regard, tratliffrn.
Now, you’ll want to do some additional research for your service region by going to the Ribbon above [starting with Home/About Us/. . . ] then move to the right and Left Click on the Magnifying Glass and enter: Arizona newbie, or simply Arizona. Truly, there is a plethora of information already present for you to study and learn from on the forum.
Here are a few direct urls that you will benefit from by reviewing:
