Related:Setting up the accounting for your business. If you operate a sole proprietorship, you might want to operate under a business name other than your own name. There are several specific skills that you will need to open a 3D printing business. Workmans comp insurance, unemployment insurance, and paid time off are common expenses that a business will need to cover when hiring staff. Check with your state for specific license and permit requirements for your 3D printing business. Of course, you can also design, print, and sell your own product. - Spreadsheet - Low expense, but easy to make errors. A business bank account keeps your personal finances separate from your business finances. While we do our best to keep this information fully up-to-date, remember this site is for informational purposes only and does not provide legal or tax advice. Check out the latest Small Business Trends to help inspire you. Learn more about licensing requirements in your state by visiting, SBAs reference to state licenses and permits, Check with your town, city or county clerks office, Get assistance from one of the local associations listed in, US Small Business Associations directory of local business resources, 3D Printing Design Business Name Generator, Form your 3D Printing Design Business into a Legal Entity, Register your 3D Printing Design Business for Taxes, Open a Business Bank Account & Credit Card, Set up Accounting for your 3D Printing Design Business, Get the Necessary Permits & Licenses for your 3D Printing Design Business, Get 3D Printing Design Business Insurance, Define your 3D Printing Design Business Brand, Create your 3D Printing Design Business Website. LLC formation packages usually include a free year of registered agent services. But ultimately your profits will come from eithera farm of printers you build to scale or through the marketing of your skill set as a graphic modeler. Other than that, though, you only need to re-stock materials (assuming you are printing the items yourself) when you get orders, and you will price items to take materials into account. In most cases, a 3D printing business is a one-person operation. A 3D printing business is usually affiliated with a larger business such as Shapeways. If you dont already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our 3D Printing Design Business Name Generator. If you are not relying on a third party such as Shapeways, then a generous portion of your time will be taken up by printing objects. According toStatista, the global 3D printing industry was $12.6 billion in 2020 and is projected to grow 17% annually through 2023 and reach $37.2 billion by 2028. These include: Here are the main reasons why you shouldnt delay building your website: Using our website building guides, the process will be simple and painless and shouldnt take you any longer than 2-3 hours to complete. A few important topics to consider are: Luckily we have done a lot of this research for you. Either way, if you want to succeed, youll need to plan for success. Have a great name idea? If you are buying your own 3D printer, you can typically find a commercial model you need for $6,000 or less, though there are models available in a variety of price points. This is one business where your preferred clients may vary greatly depending on your area and if you choose to specialize in printing certain things. Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. You could start your business for a relatively low cost and make a living as your own boss. You will need to register for a variety of state and federal taxes before you can open for business. This is true whether you are a novice interested in buying one printer to produce small on-demand orders, or if you are planning a 3D printer farm. That said, here are some typical costs when starting a 3D printing business. 3D printer $1,000-$50,000 3D scanner $200-$10,000 3D printing material $250-$5,000 Design software $0-$5,000 Desktop or laptop computer $1,500-$5,000 Replacement parts like nozzles, build plates, filament etc. Most states prohibit or restrict businesses from adopting names that are already in use. Before you get started, youll need an idea of what resources youll needand how to monetize your business in a practical way. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. This is the most common coverage that small businesses need, so its a great place to start for your business. Business Insurance for 3D Printing Design Business. Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders. This is a lower-risk way to get started to see if you can get customers and like this business. You can market your 3D printing services to these customers through hobby and craft pages on social media. Certain state permits and licenses may be needed to operate a 3D printing design business. These are great strategies for finding buyers. Try our free Business Idea Generator and find your perfect idea. The biggest expense is, of course, the printer. Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing. Visit Startup Savants startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves. However, the benefits of an LLC or corporationespecially liability protection and tax flexibilityare significant. The cost will vary greatly, depending on the niche you plan to go into. The cost for insurance policies will vary due to a number of factors. SEO rankings can be improved organically by doing some search term (keyword) research. There are lots of people who might have a one-time need for a 3D printer. Many project this will be a technology in everyones home someday, but for now it is not, so if you own a 3D printer, you can use it as a profit center. The more niche your item, the more you can effectively charge, as customers have nowhere else to obtain that item. As the field grows, unpredictable changes to the technology and the way the technology is used are bound to take place, and you will need to be out in front of it. Some common types of insurance for a 3D printing business include: General liabilityinsurancecan help protect you from third-party claims of bodily injury and property damage. Professional liabilityinsuranceprotects you from claims of professional errors or negligence that result in a financial loss. Workers compensation insurance covers expenses like medical bills and legal fees that a business might face if an employee were ever hurt while working. In addition to the ideas above, look for ways to show off and sell your products in the real world, too. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing. The key to finding clients here is wording your product name in away that maximizes its discoverability through searches. The margins for printing are low. Beyond this, your time will often be spent working on new ways to advertise your services online. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?. Prototyping is the largest segment of the industry for industries such as healthcare, automotive, aerospace, and defense. Nearly all LLCs and corporations will need to request a federal employer identification number (EIN) from the IRS. There are many resources out there specifically for women entrepreneurs. You can make money with your printer either by making it available to the designs of others or by designing printing, marketing, and selling your own product online. The goal of both of these is to hand out business cards and get an eventual stream of regular customers on top of the impulse buyers you'll get. Sign up at the Business Center to access useful tools for your business. Consider charging for your time. Keeping your business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends. Many have found success through this idea by conceiving of a niche product and making it available on Amazon or eBay. A sole proprietorship has one owner, and a partnership has multiple owners. Learn more about how to Get an EIN for your business. 3D printing is a growing industry. That leaves the sole proprietorship and LLC. Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements. It will involve you also offering your design services. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business. 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 as piercing your corporate veil. You will most likely need to set up an account with the states Department of Revenue, and you may need to apply for a state tax ID or a sales tax license as well. If the corporation is sued or certain business debts cant be paid back, the owners arent personally responsible to repay them. Separate personal and business expenses by putting your business' expenses all in one place. Many blogs tout leasing your printer to sites like 3D Hubs or i.materilise as an easy process. Legitimate federal grants can be found at Grants.gov and you can check on your states economic development office to see if they have any grants available. One research company estimates that 3D artists make an average of $53,000 a year, but that is counting those who do such work for corporations rather than themselves. Are there grants to start a 3D printing business? Many businesses will need a business license to operate. This is how businesses build business credit so they can qualify for credit cards and other lines of credit. Youll also need to do some research to calculate exactly what your startup expenses will be, and what your ongoing expenses will be. 1998 2022 Copyright Northwest Registered Agent, LLC. Starting a 3D business from home now is a great way to position yourself for success in the new normal. You can do almost all of your marketing, customer relations, printing, and shipping from home. But it isnt necessarily that easy. Related: What is a NAICS code and how to find yours. When registering a business name, we recommend researching your business name by checking: It's very important to secure your domain name before someone else does. Essentially, these are default business structures. Home / Start a Business Guide / Small Business Ideas / 3D Printing Business. You just need those few people to enter a search for your product and then youve got them. Some other common local, state, and federal registrations a 3D printing business may need include asales tax permitand anEmployer Identification Number. However, because all of the work is typically done from home, it is very easy for you to create a small network of designers in order to maximize the amount of shapes you are able to sell. You could come up with any idiosyncratic component. Related:Finding the money to start a business. The benefit to this is that you focus on creating 3D designs and taking orders while Shapeways prints the actual objects. Below, weve done the legwork for you to provide a free guide to starting a home-based 3D printing business today. Staying on top of taxes not only keeps the business out of trouble with the government but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits. See the full disclaimer and privacy statement. You can learn more about small business taxes in these guides: There are specific state taxes that might apply to your business. Here is a checklist to help you get started. Choosing the right name is important and challenging. As a home-based job, your only guaranteed costs will be to pay to host your professional website (typically less than one hundred dollars a year); you may opt to continue paying for advertising, which will typically be five hundred dollars or less per month. Build your company's credit history, which can be useful to raise money later on. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website. Some popular LLC formation services include: IncFile- $0 plus state fees & free registered agent for 1 year! LLCs and corporations come with formal requirements like state reports. A home based 3D printing business capitalizes on this emerging technologys ability to efficiently and affordably create three dimensional objects from graphic models. Writing the plan helps you to think through all the aspects of the business, and then serves as a guide as you begin. Finding the perfect 3D printing business name can be challenging. While creating a website is an essential step, some may fear that its out of their reach because they dont have any website-building experience. There are four primary business entities to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). One group that may become your favorite is hobbyists. To start an LLC, you file articles of organization. As this is a new industry, there is little data about the income of specific 3D printing businesses. As mentioned earlier, it's important to find a niche in order to maximize profits. Separates your personal assets from your company's assets, which is necessary for personal asset protection. There are a number of ways of handling bookkeeping, from DIY to hiring a bookkeeper. Another notable insurance policy that many businesses need is Workers Compensation Insurance. For information about local licenses and permits: If you are developing a unique product, concept, brand, or design, it is prudent to protect your rights by registering for the appropriate trademarks and copyrights. Perhaps the most interesting and highest margin niche will be here. 3D printing is a new and exciting industry. There are many services available to entrepreneurs who want to set up a business phone system. Support rapid prototyping. 3D printing is a technology that relies on economies of scale. This approach is actually perhaps best reserved for operations of scale. The corporation can be a good choice because it separates the business assets from the owners assets. Some areas may also require home-based businesses to obtain a Certificate of Occupancy (a document certifying the property owner has given the business permission to operate). Common marketing techniques for a 3D printing business include social media platforms like Facebook, Pinterest, and Instagram, along with online advertising. If you hire Northwest to form your LLC or corporation, we complete and submit your formation paperwork on your behalf for just $100 plus state fees. Related:Common types of insurance a business may need. How much does it cost to start a 3D printing business? Youll want to become familiar with how specifically Facebook is capable of targeting their ads to these groups. A 3D printing business will need to set aside a budget to cover marketing costs on a continuous basis. Take our Entrepreneurship Quiz to find out! Forming an LLC sounds complicated and expensive, but using an entity formation service guides you through the process so you know it was done right. Find bookkeepers in your local area or use a service like There are several types of insurance policies created for different types of businesses with different risks. The price for your items will vary greatly according to their size, complexity, and the materials used. Answer a few simple questions about your business, and well prepare and submit your formation paperwork to the state. Theyre easy, fast and cheap to start and maintain. It will help you map out the specifics of your business and discover some unknowns. A dedicated bookkeeper will probably save money because, in addition to handling all of the bookkeeping (so you can focus on the business), they also provide personalized tax advice and ensure the business is in compliance. Your choice of business structure will affect many aspects of your business, from liability to taxes. All Rights Reserved. An EIN is also a common requirement for opening a business bank account. Its important to put your companys internal policies and procedures in a written document, especially if youre starting your business with others. After your business is up and running, there are a few additional steps you may want to take as you grow: You may be interested in this field because you enjoy modeling designs and working with the printer. Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your 3D Printing Design Business is sued. Here, a customer has a conception or drawing of an idea, and you work with them to create a graphic model and then print them a final product. Using 3D printing for prototyping makes it cheap, allows for more room for error, and also allows for multiple stages of prototypes. A sole proprietorship? The two best ways for you to direct traffic to your own website are through SEO ranking and social media advertising. If you search for business grants, you will come across a lot of scams and misinformation. A website is a must, but depending on the products you are creating, listing your products on marketplaces such as Etsy, Amazon, and eBay may be excellent places to get more people to notice your items. Additionally, StartingYourBusiness.com may earn a small commission from products or services mentioned on this site. ZenBusiness- $49 plus state fees & free registered agent for 1 year! Not sure if a 3D Printing Design Business is right for you? If you are helping clients to design, model, and print a product, youll want to be compensated for that time and expertise. Eventually. Check out LLC vs Corporation and Why Turn a Sole Proprietorship into an LLC to learn more about choosing the best structure for your business. Similarly, if you are doing the 3D printing yourself, then you will need to be very familiar with using and troubleshooting your 3D printer. Finally, give 3D printed gifts to family and friends. Plan to trademark your business name? LLCs and corporations are not quite as simple and inexpensive as default structures. Part of the beauty of this job is that there are very few ongoing expenses. When brainstorming, start by thinking of customer needs: one successful shop came about when the owner realized that a 3D printer would be able to create perfectly custom bras for women. You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee. Finally, you should become very familiar with the 3D printing marketas it grows, it may become more of a challenge to make your own business stand out in the crowd. Arguably, the most important part of this job is being able to take a good idea and use a combination of software and artistic skill to make it into a reality. You should also use social media (especially Instagram) to show off high-quality photos of your creations. Most businesses are required to collect sales tax on the goods or services they provide. Most businesses can request an EIN by filling out the IRSs online form. Some 3D printing companies meet with clients at their office, however, many operate from their home. Your brand is what your company stands for, as well as how your business is perceived by the public. You can acquire your EIN for free through the IRS website, via fax, or by mail. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. Whether you have experience with 3D printing rapid prototyping, a 3D printing business could be an opportunity for you to cash in on a 3D market that is booming. The eventual profits are then split between yourself and Shapeways. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses. A 3D printing business makes money by printing and delivering 3D versions of shapes and objects to customers. To start a corporation, you file articles of incorporation. We also provide your new business registered agent service, free business forms and guides, and much more. If you file corporate income taxes, have employees, or file certain franchise taxes, you must have an EIN. Prototyping using 3D printing technologies for manufacturers reduces their production costs. A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay. It's really easy and free! Fees vary by state but are typically between $100 and $200. Conversely, you might charge upwards of two hundred dollars for large, complex terrain to be used in a tabletop war game. However, the limitations and risks of these business structures quickly become more apparent as your business grows. How do I find money to start my business. $100-$500 Materials such as filaments$500-$1500. Before you start marketing and branding your business, youll need to ensure your name is available. Local sci-fi and fantasy conventions offer a chance to rent a vendor booth and sell custom geeky jewelry and other items that fans cannot find anywhere else. The exact amount of profit you can make is difficult to determine. The equipment needed to print prototypes for manufacturers is going to be very different from smaller novelty items. Your EIN is for federal taxesbut youll likely have state and local tax obligations as well. You may also make money by taking design requests from customers who cannot find the shapes they want printed anywhere else. Setting up an accounting system for your 3D printing business is critical to the long-term success of your business. Any business debt is YOUR personal debt. If you opt for a sole proprietorship or general partnership, theres no formal paperwork to file to legally create your entityyou just start selling your product or service. Youll also want to create an excellent business website, which Facebook can send these customers to. Finally, consider every print a learning process: try to improve the appearance and sturdiness of what you create until it is perfect. Your name should make you stand out, reflect your brand, and tell potential customers exactly what you do. The sole proprietorship is the least expensive and easiest entity to start which is appealing. Rules and regulations for starting a business change frequently. Check out our How to Start a Business page. When readers purchase services discussed on our site, we often earn affiliate commissions that support our work. Recommended: Learn what business insurance for your 3D Printing Design Business will cost. Not only does the name have to reflect what you do and be appealing to customers, it also has to be available to use. Terms | Privacy | About Us | Community Rules. For LLCs and corporations, keeping separate finances is essential for maintaining liability protection. Different materials such as plastic and metals can be used. Weve gathered necessary and useful information to help you succeed both professionally and personally: If youre a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.