Copywriting has taken the online business world by storm and for good reason – it’s a great service based business option for those who are good with words! What makes it even more attractive is that starting a copywriting business comes with little to no overhead.
You can do all of the work from home, you don’t need a massive team, there are no inventory requirements, and there’s often no complicated backend to get started. It’s truly just you, your skills, your laptop, and clients who need words that convert.
Since a copywriting business is fairly easy to start, it’s super common for copywriters to launch their business in a way that’s veryyyy unprotected in a legal sense.
Many copywriters rush to sign their first client before thinking about things like contracts, website policies, or what actually happens if a client doesn’t pay, disappears mid-project, or asks for “just one more edit” for the tenth time.
Failing to implement those things can result in scope creep, unpaid invoices, awkward client conversations, and unnecessary legal stress.
So if you want to start a copywriting business, I encourage you to go for it! But make sure you do so in a way that has a solid legal foundation (and keep it that way as you grow) – and in this blog post I’m covering all the legal steps to help you do just that.
The Legal Steps to Starting Your Copywriting Business
Starting your business “the legal way” doesn’t mean making things complicated – it means putting a few key protections in place before problems arise. These steps help you operate like a real business from day one and prevent issues that many copywriters only realize after they’ve been burned.
Choose Your Business Entity
One of the biggest mistakes that new copywriting businesses can make is failing to choose a legal entity that their business will operate under.
And though "legal entity" feels like some scary, formal phrase, it's really not that intense. A legal entity is just the formal structure your business operates under. Some structures, like an LLC or a corporation, create a separate legal identity for your business, meaning the business can enter into contracts, own assets, and take on debts in its own name (separate from you personally). Others, like a sole proprietorship, don't create that separation, which means you and the business are legally the same person.
Why does this matter? Because the structure you choose affects everything from your personal liability to how you file taxes to how protected you are if a client dispute ever gets serious.
To make sure you're set up the right way from the very beginning, this is the FIRST legal decision you'll want to make when starting your copywriting business.
Many copywriters start as a sole proprietor because it's simple and inexpensive. There's no registration required in most states and no separate entity to manage. The downside? You don't get any liability protection, so if something goes wrong, your personal assets are on the line.
That's why a lot of copywriters choose to form an LLC, which creates that legal separation between you and your business. It gives you liability protection, looks more professional, and is still relatively easy to set up and maintain.
As your income grows, you might also hear about electing S-Corp tax treatment. Here's what that actually means: an S-Corp isn't a separate business structure. It's a tax election you can make through the IRS (using Form 2553) while keeping your LLC in place. It can help you save on self-employment taxes once your income hits a certain level, but it comes with additional requirements like running payroll for yourself. It's worth talking to a CPA about whether and when that makes sense for your business.
There’s no one-size-fits-all answer here – the right choice depends on factors like your income level, risk tolerance, and long-term plans.
What matters most is that you intentionally choose a structure instead of defaulting into one.
Once you do, make sure you’re operating under that entity consistently, meaning you use that verbiage in contracts, invoices, etc.
P.S. If you do decide to go the route of forming an LLC, be sure to avoid these 3 common mistakes! And even better, download my free roadmap to starting your LLC.
Register Your Business + Obtain an EIN
In addition to choosing your business structure, the next step is making sure your business is properly registered and set up with the IRS.
Now, I'll be the first to admit that this is the "boring" part of starting a business. But it's necessary and it really doesn't take that much time to do!
Here's what this looks like depending on your structure:
If you're forming an LLC, you'll need to register with your Secretary of State. Simply Google "[your state] business registration" and you'll be guided through the process.
You'll also need to designate a registered agent (the person or service authorized to receive legal documents on behalf of your LLC) and keep up with any annual filing requirements your state has.
If you're starting as a sole proprietor, you may not need to register with your state at all, unless you're operating under a business name other than your legal name. In that case, you'll want to file a DBA (doing business as), sometimes called a fictitious name registration, so you can legally operate under your chosen business name.
After that, you'll want to get an EIN (Employer Identification Number) through the IRS. An EIN is a Tax ID for your business that you'll use on tax documents, bank account applications, and contracts. It's required if you have an LLC, a corporation, or employees, and it's strongly recommended even if you're a sole proprietor because it keeps you from having to hand out your Social Security Number to every client you work with.
Two More Things to Set Up Before You Start Taking Clients
Before you move on to contracts and legal agreements, there are two more things worth doing early:
Open a Separate Business Bank Account
If you formed an LLC, this one is non-negotiable. One of the main reasons to have an LLC is to keep your business finances separate from your personal finances. If you mix the two (something called "commingling"), you risk losing the liability protection your LLC gives you. Even if you're a sole proprietor, keeping a separate account makes bookkeeping so much easier and keeps things clean come tax time.
Consider Business Insurance
This isn't something every copywriter thinks about, but professional liability insurance (sometimes called errors and omissions or E&O insurance) can protect you if a client claims your work caused them financial harm. It's not required, but it's an added layer of protection that can give you peace of mind, especially as you start taking on bigger clients and higher-value projects.
Implement Key Legal Agreements Early
Once your copywriting business is registered and you’ve obtained your EIN, you’re officially considered a real business. Which means you have real legal obligations that you must meet!
And from experience as a trademark and contract lawyer for creative, online business owners this is where I see many copywriters waiting too long.
Contracts and legal policies aren’t something you add once your business is “big enough” – they’re part of what makes your business legitimate. Having key legal agreements in place early helps you set expectations clearly and confidently from the start.
The 3 key legal agreements that EVERY copywriting business needs from the start include:
- Copywriter Services Agreement – this contract outlines the terms of your working relationship, sets clear expectations, and ensures you get paid on time. Without having this in place, you’re leaving yourself open to misunderstandings, last-minute changes, and potential payment disputes.
- Website Privacy Policy – a detailed notice that is published on your website, typically found in the footer, that outlines how your website collects, uses and manages a user’s personal information.
- Website Terms of Use – a legal agreement that outlines the rules and guidelines for visitors interacting with your website
P.S. Many people assume that a Website Privacy Policy and a Website Terms of Use are the same thing, but in reality they serve a very different purpose! CLICK HERE to learn more about why your copywriting website needs both.
Create a Copywriting Services Contract (Before You Sign Your First Client)
As mentioned above, one of the key legal agreements that you need to set up when starting your copywriting business is a Copywriting Services Contract. It’s so important that it needs it’s own section!
Your copywriting contract outlines the terms of your working relationship, sets clear expectations with clients, and ensures you get paid on time. Without having this in place, you’re leaving yourself open to misunderstandings, last-minute changes, and potential payment disputes.
Here are the key things your Copywriting Services Agreement should cover:
Scope of Work
What exactly are you writing? How many revisions are included? When will the first draft be delivered? This section helps prevent scope creep, where clients continuously ask for "just one more thing" without additional payment.
For a deeper look at how to set boundaries around scope, revisions, timelines, and more, check out our post on how to set boundaries with your copywriting clients.
Payment Terms
Whether you charge per project, per hour, or per word, your contract should state when and how you expect to be paid. You can also include late fees to encourage timely payments.
Ownership & Copyright
Here's something a lot of new copywriters don't know: under copyright law, you automatically own the rights to the copy you create, even after you deliver it. That ownership doesn't transfer to the client just because they paid you. For it to transfer, your contract needs to include an assignment clause that explicitly states when and how ownership moves from you to your client (usually upon receipt of full payment). Without that, you could end up in a messy dispute about who actually owns the work.
Revisions & Approvals
How many rounds of edits are included? Setting boundaries around revisions helps prevent endless back-and-forth.
Confidentiality & Non-Disclosure
Many clients share sensitive information about their business and a confidentiality clause ensures you keep that information private.
Overall, when someone hires you for a copywriting project, it’s important that you and your client are on the same page about roles, responsibilities, expectations, timelines, payment, and more.
Create a Legally Compliant Website
Once you have all the “boring business” stuff out of the way, you’ll probably be ready to shift gears into some of the more creative and fun parts of starting a business, like building your website.
As a copywriter, I can imagine that you’re super excited about this one because it becomes a reflection of the work that you can do for clients.
But here's my word of caution: don't get so caught up in the fun part of creating your website that you forget the legal part of it! And no, that doesn't mean you have to sacrifice the aesthetics.
It simply means making sure you have the right legal policies in place before you launch your website publicly.
Why? Because the second your website starts collecting any kind of personal information (and yes, even something as simple as a contact form or an email opt-in counts), you have legal obligations around how that data is collected, used, and stored. Privacy laws like the California Consumer Privacy Act (CCPA) and potentially the GDPR (if anyone from Europe visits your site) require you to disclose your data practices. And if you're using cookies, analytics tools, or any kind of tracking on your site, there may be additional requirements depending on where your visitors are located.
That's where your Website Privacy Policy and Website Terms of Use come in. These two documents work together to protect your website, your content, and the data you collect from visitors.
The Copywriter Contract Bundle
Overall, starting a copywriting business can be a great way to get yourself into the world of online business. But failing to implement the right legal steps right from the start can suck the fun out of it and leave you with a much bigger mess than you started with.
To help make things simple for you when starting your copywriting business, I created a Copywriter Contract Template Bundle that includes 3 of the key legal agreements you need, including:
✅ Copywriter Services Agreement + Statement of Work (to protect your client relationships)
✅ Website Privacy Policy (to keep your website legally compliant)
✅ Website Terms of Use (to safeguard your content and website interactions)
If you’re serious about running a professional, profitable, and legally sound copywriting business, don’t leave yourself unprotected.
Grab the bundle, customize the contracts to fit the specifics of your business, and know that you've got a solid legal foundation in place from day one!
ABOUT THE AUTHOR, AMBER GILORMO – ATTORNEY AND FOUNDER OF THE BOUTIQUE LAWYER
Amber Gilormo is the cool lawyer behind The Boutique Lawyer – a one-stop contract template shop for creative entrepreneurs, online business owners, coaches, and service providers.
From client agreements to digital product terms and everything in between, our lawyer-drafted templates take the guesswork out of staying legally protected online (no legal jargon required).
Here’s how you can stay connected:
🖋️ Let’s be pen pals! Subscribe to my email list to receive all of my best biz tips and behind the scenes goodies to keep your business bringing in sales (legally of course).
📄 Binge the blog to get all of the legal information you need about running a business in a way that actually makes sense to your non-legal brain.
👋 Come hang with me on the ‘gram! I often do AMA’s on stories, so you can submit your specific questions when they come up.