Your First 5 Steps for Setting up Your Own Professional Cuddling Practice
There are referral links in this article. I may get compensated for the products I recommend and promote in this article.
“Do I need a business license for my professional cuddling business?” is a question I get asked pretty often.
The answer? It’s complicated.
In Massachusetts, where I practice, the answer is usually no– but requirements vary from state to state (and sometimes from municipality to municipality). You’ll want to check your own state’s and town’s licensing requirements to see if you need a business license, a business certificate (if your business’s name isn’t your legal name), or if there are other rules you’ll need to follow.
I definitely understand wanting to have all your business ducks in a row. When I was getting started cuddling, I was worried about that, too. And if I had to do it again, here are five steps I’d take to set up a cuddling business right.
If you’re already listed on a cuddle site or two and accepting money for sessions, you’re technically an independent contractor, yeah– but the IRS recognizes you as a sole proprietor, and will tax you as one. This means you’re responsible for taxes your employer would normally pay (but you also get to write more things off on your taxes, so overall it’s a win).
If you want more wins, getting an EIN is one of the easiest ways to open up a ton of opportunities for your business– and it only takes 15 minutes to do.
With an EIN, you’ll be able to get better banking options, apply for business loans and funding, set up a personal 401(K) plan, hire employees… the list of benefits goes on.
You don’t need to make an LLC to set up your cuddling business– but if you do, programs like LegalZoom might offer to get you an EIN at an added cost. Since it’s super easy, save yourself the money and do it for free!
2. Get a separate bank account for your cuddle money.
I literally used to deposit all of my cash from cuddling payments directly into my personal account until around February of 2017…
…which was more than a year after I was in professional cuddling. (WTF, Past Sam?)
Putting my cuddle money into a separate bank account helped me see just how much money was really coming in from cuddling, which can definitely be a boon for your business.
It also helps you see what you’re spending it on. Within six months of cuddling full-time, my account went negative, and I found out that, uh, I wasn’t doing as well as I thought I was.
Weighing costs and income by separating your cuddling funds from your personal funds also helps you be more intentional about paying yourself – and about what business expenses you absolutely need and what you don’t.
Having a separate account for cuddling is really useful for taxes, too— it makes your life a LOT easier once taxes roll around. You’ll have less headaches for whomever is doing your taxes (a CPA or yourself) and more time to focus on other parts of your business, like…
3. Get some way to accept payments from people electronically.
If you’re only accepting cash, you’re likely missing out. Most clients I have want to pay electronically these days, so finding a way to accept electronic payments that works for you is important.
Venmo, PayPal, and Cash App are great for personal use. Most clients use at least one of these services, you can connect them directly to your cuddling account, and you can move your money quickly, if you need to.
But as a personal user, all it takes is one vengeful client claiming fraud for these services to shut down your account– and sometimes even tie up money you’ve left in the account. (Yikes!)
Adding a business account on these electronic services gives you more protections. For example, if someone disputes a charge, you get an opportunity to defend yourself– keeping your account intact and your business in good standing with the service.
I personally use (and like) Square. Square gives you a ton of different reporting options, so you can see income over time, on specific days, or from specific clients. You can also send invoices, so people can pay well before I actually see them, and they can save a card on file for future visits (and so I can charge late or cancellation fees). Using my referral link, you can get up to $1,000 of free credit card processing through Square.
4. Get insurance.
It might seem like an extra expense up front, but you’ll likely need insurance– whether you’re working out of your home or out of a designated cuddling space.
Renter’s insurance or homeowner’s insurance likely won’t cover you for all your liabilities. And most out-of-home offices will have some insurance requirements before you can rent space from them.
If you go look for insurance through an agent, you’ll likely find it pretty difficult. Not only are these plans more expensive for you, but since there’s not a lot of data on risk in our profession, they often transfer their risk to you in the form of higher premiums. At least as of this writing, you don’t need to deal with that when there’s places that already did their risk assessment and will insure you.
Two insurance companies that accept cuddlers inexpensively are Beauty & Bodywork Insurance— what I use, though you’ll have to chat with them directly to make sure they still cover cuddlers– and the Hands On Trade Association, under “cuddle therapy”.
Do note: as of this writing, I’m looking for new insurance providers in the new year. BBI seems to not have an underwriter on their staff (and if they do, I have found them impossibly hard to work with). This has made getting small details and verbiage changed on my insurance documents like pulling teeth. If you’re starting out and don’t need small customizations to your quotes, this might not be an issue for you and you can get their quote as is. For me, I’ll be looking to invest slightly more money into a company that takes care of this headache for me come this June. Stay tuned for more options!
5. Have a way to collect information on interested potential clients
Marketing is one of the most important parts of your cuddling business. Putting yourself out there in as many places as you can is vital– but for actual sales conversions, it’s not enough.
Why? A few reasons:
People are forgetful. Even some of my clients that have seen me multiple times forget me if I don’t reach out often. (Seriously?! Seriously!)
Lots of people are self-conscious about wanting a cuddling session. Many are afraid to reach out if you don’t, because they’re worried you might not want to see them. Others experience anxiety or self-consciousness, or have preconceived ideas that you don’t work with people much older than you. There are so many reasons people don’t reach out– so you have to.
Not everyone is ready to come in for a session after meeting or chatting with you. Having their information means you can keep the lines of communication open rather than just hoping someone reaches out to you eventually.
The good news is that there are plenty of ways to collect information. A combination email list/Customer Relationship Management (CRM) system like MailChimp, a Google Form or Typeform, a Contact page on your website, a scheduling link– any of these options will help you follow up with clients until they say they’re not interested.
Even if you’ve already set up your professional cuddling business, following these steps can give you clarity around your outcomes and streamline your work, putting you in a better position to do more with less. And if you’re looking for more ways to make your life easier with your practice, I recommend looking into my free workbook, “Designing How You’ll Work As a Professional Cuddler.” It has 32 essential questions every professional cuddler should have answers to so they can run their practice confidently and professionally— so you can focus on being with your client the best way you can be instead.