How to Start Up a Temporary Agency

By Lanee’ Blunt
Open a temp service--
Image by Ante3.

Starting your temporary agency can be rewarding because when businesses and organizations need temporary or seasonal help they may use your company to fulfill their manpower needs. Your temporary employment service will undertake the hiring and firing decisions, you will issue paychecks, withhold payroll taxes, pay unemployment insurance, and worker’s compensation.

A business client will need an employee for a specific time frame, pay a set hourly rate to the temporary employment agency for the services of the temporary employee.

Determine Legal Ownership
You must set up your business as a legal entity. Decide which form of ownership is best for your particular business: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, or S corporation. Complete all the paperwork at the local, state, and federal to establish your business.

Obtain Business Insurance
Get insurance that will protect your business. Talk to an insurance agency. The minimum insurance that you will need will be for general liability, workers’ comp., and profession liability insurance.  Contact your state's Insurance Fund for your Workers Comp. policy. 

Purchase payroll software.  Purchase computers, printers, fax machine, and internet. You will need office furniture and enough furniture for a lobby area.

Put ads in the classified section of your local newspaper and online. Create flyers and postcards. Create an information package that describes the service you offer and distribute it to corporations and businesses.

Inc: Temporary Employment Services
Entrepreneur: Business Ideas Center: Temporary Help Agency
WikiHow: How to Start a Temp Agency 


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