Independen⁠t⁠ Prov⁠i⁠ders

Overview

With the rise in education choice across the country, unbundled services are becoming common as parents choose an a la carte approach to their children’s education. As our society has moved into one where customization is the norm, it is not surprising that a customized education, carefully curated for each student, has increased in popularity. Unbundling has been around for a long time as parents add ballet, private music lessons or engage the services of a math tutor to help their students perform better on an upcoming test. Education Savings Accounts are changing the landscape of options for parents, allowing ESA funds to be used for complete unbundling of services such as tutors, special education specialists, curriculum, cooperative tuition or they use the funds toward traditional private school tuition.

Are you an education entrepreneur interested in starting an independent practice in Montana? We’ve put together this ultimate guide to answer your questions.

Disclaimer: This page does not offer legal advice and should not be perceived as such. We have compiled the publicly-available resources below only as a starting point that may help you evaluate key considerations along your education journey. For legal questions, we recommend that you contact an attorney familiar with Montana law and other appropriate regulatory agencies.

Considerations for Education Entrepreneurs

As an entrepreneur with a private practice, it is crucial to understand what you’re offering families and familiarize yourself with your responsibilities as an education provider. Below we list some key considerations for prospective private practice founders.

Who Can Start an Independent Practice?

While Montana doesn’t require specific licenses for private tutoring businesses, it is best to maintain an active Montana business license for tax and insurance purposes.

Business Structure

As an independent education provider, your business structure will depend on the services you offer and whether you plan to hire employees. You’ll need to decide whether to operate as a sole proprietorship, LLC, or corporation, with many education businesses opting for an LLC to limit personal liability. Montana’s business registration process is straightforward and can be completed online through the Secretary of State’s website. It’s also a good idea to consult with an accountant familiar with Montana tax laws to ensure you’re making the best choice for your financial situation. Consider professional liability insurance if providing educational advice or special education services.If you belong to a professional organization, such as the Association of Educational Therapists, membership benefits may include access to preferred or discounted private practice insurance policies.

If you plan on hiring employees or even sharing an office space with other independent contractors, you may need to consider a Workers’ Compensation policy.

Learning Environments

As an Independent Provider, there is a lot of flexibility when it comes to meeting spaces. You can meet with students online, over the phone,  in your own office, at the student’s house, in person at a coffee shop, reserve a room at the public library, or possibly even at the student’s school. The location you choose depends on what is comfortable or most convenient for instruction for both you and your client..

Instruction

Independent education providers often specialize in a few subjects such as reading and writing or math, but some may choose to provide a robust, full curriculum. Be sure to coordinate with the parents of each student to ensure the parents are following Montana law minimum requirements.

Independent Providers are free to offer unique curriculum and classes that students wouldn’t  find in traditional public schools. For example, instruction in canning and preserving or woodworking have been growing in popularity as a desire for life skills study.

Religious/Non-Religious

Independent Providers are free to offer religious-based instruction.

Budgeting

As an independent provider, you will need to set your own price that clients are willing to pay. It may take some time to figure out the right amount to charge for your work. You will need to consider the value of your time, an office rental, your own transportation expenses, curriculum, and other supplemental materials needed to teach your courses adequately. You may want to pay for everything on your own, and then work it into your fee structure, or you may keep your hourly fee minimal, but then have the parents pay for supplies. There is no right or wrong way to do this, but you must consider what will work best for you and your clients.

Student Financial Support

With the new Special Needs ESA here in Montana, students participating in the program may choose to use their funds toward services with an independent provider. Montana’s ESA program provides parents of a child with a disability access to an account from which they can be reimbursed for educational expenses of roughly $5,500 for elementary students and $8,000 for a high school student. Parents can use ESAs to pay for private school tuition, home education, tutors, curriculum, therapies, and more.

To learn more about your responsibilities as a provider receiving ESA funds, check out our Provider’s Guide to ESAs.

Starting an Independent Practice

Starting a private education business in Montana can be rewarding and impactful, but it requires attention to legal, financial, and market demands. With the right approach, you can create a successful business that meets the educational needs of families across the state.Below, we’ve curated some helpful links and resources for Independent Providers.  We also provide free one-on-one consultations to address any additional questions, and our well-connected team is ready to facilitate introductions and connections to others who can assist.

More Resources

The Great Unbundling
Montana Secretary of State
How to Start A Tutoring Business