Local temp staffing agency
Supply local businesses with temporary workers for warehouse, office or event work, and bill them for the hours worked.
- $15k-60k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in the US, not guarantees.
Official data
7,679 US businesses with employees in this field, +9.2% in a year
NAICS 561311 “Employment placement agencies”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
A small staffing agency that recruits workers and places them on short-term assignments with local businesses. You employ the workers on your payroll and the client pays you for their hours.
Your first three steps
- Choose one worker type (such as light industrial or clerical) and visit 20 local employers to learn their needs
- Get quotes from insurers for workers' compensation and general liability, and from a payroll or staffing back-office provider
- Form an LLC, get an EIN, and check your state and city for staffing agency licensing or bonding rules
Who pays
Local warehouses, light manufacturers, offices, restaurants and event companies that need flexible or seasonal help.
How it makes money
You bill clients an hourly rate per worker, set above the worker's pay plus payroll taxes and insurance. The difference (your markup) covers costs and profit.
Skills that help
- Sales and local networking
- Handling payroll and paperwork
- Quick screening and scheduling
- Dealing calmly with last-minute changes
Watch out for
- You pay workers before clients pay you, so cash flow is the main risk; check payroll funding or factoring options
- Workers' compensation insurance is a major cost for temp staffing, and rates vary by job type and state
- Some states and cities license or register staffing agencies, so check before you place anyone
- Employer duties include payroll taxes, I-9 checks and wage rules; consider an accountant or payroll provider
- Client contracts should state rates, payment terms and who is responsible on site
Deep research report · US
Everything you need to start: local temp staffing agency
Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a temp staffing agency?
Startup costs are typically around $15,000 to $60,000, depending on your office setup and payroll funding. You pay workers before clients pay you, so check payroll funding or factoring options as part of your planning.
What rules apply to running a staffing agency?
Check whether your state or city licenses or registers staffing agencies before you place anyone. Also check employer duties such as payroll taxes, I-9 checks and wage rules, and workers' compensation insurance, which varies by job type and state.
How much can a temp staffing agency earn?
Monthly revenue is typically around $10,000 to $50,000, depending on how many clients and hours you bill. Cash flow is the main risk, and workers' compensation insurance is a major cost, so check your numbers closely.
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