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How to Start a Translation Agency

Written by:

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by:

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

How to Start a Translation Agency

Fast Facts

Investment range

$2,550 - $7,100

Revenue potential

$65,000 - $520,000 p.a.

Time to build

0 – 3 months

Profit potential

$58,000 - $104,000 p.a.

Industry trend




In today’s globally connected business environment, demand for translation services is growing fast, with the global translation market expected to see steady growth through 2028. If you’re fluent in multiple languages, you could start your own translation agency and help people connect around the world while making a good living from the comfort of your own home. 

But in addition to language skills, you’ll need some entrepreneurial wisdom. Fortunately, this step-by-step guide has all the business insights you’ll need to launch your successful translation agency.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a translation agency has pros and cons to consider before deciding if it’s right for you. 


  • Low Startup Costs – Computer and software are all that’s required
  • Flexibility – Work at home, set your own hours
  • Hot Market – Translation services are in high demand


  • Skills Required – Excellent language skills necessary
  • Saturated Market – Compete with human and digital translators

Translation industry trends

Industry size and growth

translation industry size and growth

Trends and challenges

translation agency Trends and Challenges

Trends in the translation industry include:

  • Translation technologies are rapidly improving, improving the speed and accuracy of translation services, such as by offering suggestions within documents. 
  • Fortune 500 companies that use translation services are twice as likely to increase profits — a statistic you might use in your marketing. 

Challenges in the translation industry include:

  • Many translators freelance, making it difficult for translation agencies to hire employees.
  • Evolving translation technologies may soon pose a threat to human translators.

Demand hotspots

translation agency industry demand hotspots

What kind of people work in Translation?

translation agency industry demographics

How much does it cost to start a translation agency business?

Startup costs for a translation agency range from $2,500 to $7,000, or significantly lower if you already have a good computer. The other main cost is translation software, which significantly increases speed and efficiency, saving thousands of dollars each year. 

You can become certified in translation through the American Translators Association. You must pass an exam and regularly complete continuing education to keep your certification. 

Start-up CostsBallpark RangeAverage
Setting up a business name and corporation$150 - $200$175
Business licenses and permits$100 - $300$200
Business cards and brochures$200 - $300$250
Website setup$1,000 - $3,000$2,000
Computer$800 - $2,000$1,400
Translation software$200 - $1,000$600
Total$2,550 - $7,100$4,825

How much can you earn from a translation business?

translation agency earnings forecast

Translation prices range from $.09 to $.40 per word depending on the complexity of the documents and the rarity of the language. These calculations will assume an average rate of $.25. Your profit margin should be about 90%. 

In your first year or two, you could translate an average of one 5000-word document per week, bringing in $65,000 in annual revenue. This would mean $58,000 in profit, assuming that 90% margin. As your brand gains recognition, sales could climb 40,000 words per week. At this stage, you’d hire other translators, reducing your profit margin to around 20%. With annual revenue of $520,000, you’d make a tidy profit of $104,000.

What barriers to entry are there?

There are a few barriers to entry for a translation agency. Your biggest challenges will be:

  • The language skills needed to be an excellent translator
  • Acquiring clients when you have no experience

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Step 2: Hone Your Idea

develop a business idea

Now that you know what’s involved in starting a translation agency, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research translation agencies in your area and online to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a translation agency that specializes in legal documents or bank loan documents. Or maybe medical, technical, or entertainment translations.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as marketing copy translation or website translation.

Your services will depend on your skills and experience with a specific industry. Specializing helps in building a reputation as an expert in a specific field, attracting clients who need specialized services.

In addition to document translation, you could also do local in-person translation and live real-time translation online. 

How much should you charge for translation services?

Prices will vary based on the complexity of the documents and range from $.09 to $.40 per word. You should aim for a profit margin of about 90% when you’re working by yourself. Ensure that your pricing is competitive and consider offering packages or discounts for large or ongoing projects.

Once you know your costs, you can use our profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be mainly business owners who you can find on LinkedIn. You can also contact local businesses directly. You can find them on Google or Yelp. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

  • Central location accessible via public transport
  • Ventilated and spacious, with good natural light
  • Flexible lease that can be extended as your business grows
  • Ready-to-use space with no major renovations or repairs needed
translation agency idea rating

Step 3: Brainstorm a Translation Company Name

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “translation” or “translation services”, boosts SEO
  • Name should allow for expansion, for ex: “Universal Translation Agency” over “Legal Translation Experts”
  • A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a business plan:

what to include in a business plan
  • Executive Summary: Highlight the objectives and strategies of your translation agency, focusing on offering a wide range of language translation and localization services to businesses and individuals.
  • Business Overview: Describe your agency’s specialization in providing translation services for various documents, websites, and multimedia content across multiple languages.
  • Product and Services: Detail the types of translation services offered, including document translation, website localization, and interpretation services.
  • Market Analysis: Assess the demand for translation services, identifying key market segments like international businesses, legal entities, or educational institutions.
  • Competitive Analysis: Compare your agency to others, focusing on your strengths such as language expertise, turnaround times, or niche market specializations.
  • Sales and Marketing: Outline your strategy for attracting clients, using tactics like online marketing, networking with businesses, or attending trade conferences.
  • Management Team: Highlight the qualifications and backgrounds of your team members, especially their expertise in linguistics, project management, and customer relations.
  • Operations Plan: Describe the operational workflow, including client consultation, project management, quality control, and delivery of translation services.
  • Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and revenue projections.
  • Appendix: Include supplementary documents like translator certifications, client testimonials, or detailed market research to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to translation agencies. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your translation agency will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

types of business structures
  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. 

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

types of business financing
  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a translation agency business. 

Step 8: Apply for Licenses/Permits

Business Licenses and Permits

Starting a translation agency business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your translation agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

types of business insurance
  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

Launching a Business

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Smartling, Trados, or lokalise, to manage your projects, workflows, and translation quality. 


  • Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.


Here are some tailored marketing strategies to help you thrive in the competitive translation industry:

  • Leverage Social Media: Utilize platforms like LinkedIn, Facebook, and Twitter to share interesting content related to language and culture. This could include fun facts about languages, translation challenges, or case studies. Engaging content can attract a broader audience and establish your brand as both knowledgeable and approachable.
  • Content Marketing: Start a blog or a YouTube channel focused on translation challenges, language learning tips, and cultural insights. This positions your agency as a thought leader in the industry and can improve your SEO rankings, drawing more traffic to your website.
  • Client Testimonials and Case Studies: Showcase success stories and testimonials from satisfied clients. Real-life examples of how your services have helped others can be very persuasive to potential clients.
  • Partnerships and Collaborations: Partner with businesses in related fields, such as law firms, educational institutions, or publishing companies. These partnerships can lead to referrals and a broader client base.
  • Offer Webinars and Workshops: Host informative sessions on topics related to translation and language services. This not only showcases your expertise but also helps in building a community around your brand.
  • Utilize SEO and Local SEO: Optimize your website for search engines to ensure that potential clients can find you easily. Also, focus on local SEO if you are targeting clients in a specific geographical area.
  • Email Marketing: Build an email list and send out regular newsletters with updates, offers, and useful content. This keeps your agency in the minds of potential clients and can encourage repeat business.
  • Referral Program: Implement a referral program where existing clients can refer new clients in exchange for discounts or other benefits. This can be an effective way to gain new business through word-of-mouth.
  • Attend Industry Events and Conferences: Participate in translation and language-related events and conferences. This is a great way to network, learn about the latest industry trends, and promote your services.
  • Quality and Turnaround Time: Emphasize the quality of your translations and the efficiency of your service. Fast turnaround times can be a significant selling point.
  • Multilingual Customer Support: Offer customer support in multiple languages. This not only helps in serving clients better but also demonstrates your agency’s language capabilities.
  • Leverage Customer Feedback: Regularly collect and analyze feedback to improve your services. This can also help in tailoring your marketing strategies based on what clients are looking for.

Focus on USPs

unique selling proposition

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your translation agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your translation business could be:

  • Professional Arabic to English legal translations
  • Chinese to English — fast and accurate!
  • Sharp multilingual translation for your marketing and PR 


You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a translation business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in translation for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in translation agencies. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

Building a Team for a New Business

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a translation agency business include:

  • Translators – perform translation services
  • General Manager – scheduling, staff management, accounting
  • Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Translation Agency – Start Making Money!

Running a Business

If you’re fluent in a language, why not put those skills to work? In a world where business is increasingly global, translation services are seeing a sharp increase in demand. You can start your translation agency at home as a solopreneur for a small investment and soon be making good money.

You’ve got the business skills to match your language abilities, so now it’s time to go ahead and begin your entrepreneurial adventure! 

Translation Agency Business FAQs

Can a home translation agency be profitable?

Yes, it can be profitable. When you’re working at home as a solopreneur, your ongoing expenses will be low. As long as you’re providing high-quality services, you should get repeat customers and be successful.

How do translation agencies find clients?

They can establish an online presence by creating a professional website and utilizing search engine optimization (SEO) techniques to improve visibility in search results. They can also leverage social media platforms to showcase their expertise, engage with potential clients, and run targeted advertising campaigns.

Which translation pays most?

The payment for translation services can vary depending on several factors such as language combination, specialization, complexity of the content, and the client’s budget. Generally, highly specialized or rare language pairs, such as translating from or into lesser-known languages, can command higher rates. Legal, medical, or technical translations also tend to pay more due to their specialized nature and the required expertise.

What businesses need translators?

Various businesses and industries require translation services. Some common examples include international corporations expanding their reach into foreign markets, e-commerce platforms looking to localize their websites and product descriptions, legal firms needing translations of legal documents, healthcare providers requiring translation of medical records or patient information, and government agencies needing translations for official documents or international communications.

How can I attract and retain clients in a competitive translation market?

First, deliver high-quality translations consistently and meet agreed-upon deadlines. Establish clear and effective communication channels with clients to address their needs and provide regular updates. Develop a specialization or expertise in a specific field or industry to differentiate yourself from general translators. Build a strong professional network and seek referrals from satisfied clients or industry colleagues.


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How to Start a Translation Agency