So, you’re thinking about starting your own personal training business—awesome! Whether you’re breaking away from a gym or diving straight into building your brand, launching your own fitness business is exciting, but it’s not all about squats and sprints. Getting your finances in shape is just as important as getting your clients there.

In this guide, we’ll walk you through the financial must-haves to get your business off the ground and keep it running strong—from figuring out startup costs to managing your income (even when it’s inconsistent) and staying on top of taxes. No complicated jargon here, just real-world advice and tools you can actually use to set yourself up for long-term success.

By the time you finish reading, you’ll feel more confident about taking the leap into entrepreneurship, knowing that your finances are solid. Plus, we’ve thrown in some downloadable resources to make things even easier for you.

Let’s make sure your business is as fit as your clients!

Setting Up Your Business Structure

Disclaimer: Always consult with a legal or financial professional when setting up your business structure.

Before you jump into training clients, it’s critical to get your business structure sorted. Not only does this impact how much you’ll pay in taxes, but it also affects your personal liability and how you’ll grow your business. Here’s a breakdown of the most common structures for personal trainers and fitness business owners, and what you need to know about each.

1. Sole Proprietorship

If you’re just starting out and plan to work alone, a sole proprietorship might seem like the easiest option. In this setup, you and your business are one and the same—there’s no legal distinction. That means you report your business income and expenses on your personal tax return. While it’s simple and low-cost to set up (basically no set-up!), the major drawback is that you’re personally liable for any debts or legal claims against your business.

Pro Tip: Many trainers start as sole proprietors, but as you grow and take on more clients (or liability), switching to an LLC or S-corp can offer more protection.

2. Limited Liability Company (LLC)

For personal trainers who want to separate their personal assets from their business, forming an LLC is a smart move. With an LLC, you get legal protection—meaning if something goes wrong in your business, your personal assets (like your house or savings) can’t be touched in most cases. This is especially important if you have a physical space, group classes, or anything that increases the potential for accidents.

Why LLC is a Game-Changer for Trainers:

Liability Protection: If a client gets injured or sues, your personal assets are protected, in most cases. (There are exceptions to this, such as criminal acts.)
Flexibility in Taxation: LLCs can be taxed as a sole proprietorship, partnership, or S-corp, giving you options based on how your business grows. You have to opt for these ahead of time, don’t wait if you want to take advantage of S-corp taxation, for example.
Professional Image: Having an LLC can add professionalism and can help you build trust with clients and partners.

3. LLC with S-Corp Election

Once you start earning more, especially if you’re pulling in $60,000+ a year, you should look into filing your LLC as an S-Corp. Be aware that this threshold can vary business to business and it’s best to consult a professional for this. This election allows you to split your income into salary and distributions, which could potentially reduce your self-employment taxes. In simple terms, instead of paying self-employment tax on every dollar you make, you can minimize it by paying yourself a reasonable salary and then taking the rest as profit distributions (which aren’t subject to self-employment tax).

Key Numbers to Consider:

Self-employment tax savings: You pay about 15.3% on your earnings as a sole proprietor or LLC. By electing S-corp status, you could save thousands in taxes, depending on your salary.
Payroll Requirements: With an S-Corp, you’ll need to run payroll, which can add some complexity. Hiring a payroll service for a minimal fee each month can solve this easily, though. We recommend Gusto.

Pro Tip: Work with a CPA to help you decide when and if the S-Corp election makes sense for your income level. It’s a powerful tool, but it’s important to set it up properly. Ensure that you work with them on establishing a reasonable salary.

5. Why Separating Your Finances Matters

Regardless of which structure you choose, separating your personal and business finances is critical. Open a dedicated business bank account and a separate business credit card. This not only simplifies bookkeeping but also protects your personal assets in case of any legal issues. Plus, it makes tax time much easier when you’ve kept all your business expenses in one place.

Here’s why it’s important:

Easier Bookkeeping: You’ll have a clear picture of your business finances without having to sift through personal transactions.
IRS Compliance: Keeping business and personal finances separate is a key factor if you’re ever audited. The IRS loves seeing clean records.
Professionalism: Paying for business expenses from a dedicated business account looks more professional to clients and vendors.

Pro Tip: Many banks offer no-fee business accounts for new entrepreneurs. Take advantage of this early on, and your future self will thank you when tax season rolls around.

Key Takeaway: Choosing the right business structure and separating finances early on sets the foundation for streamlined financial management and reduced liability. Seek help from financial professionals early on.

Budgeting for Startup Costs

Starting a personal training business comes with a range of upfront costs that require careful planning. Essential expenses such as certifications, liability insurance, and fitness equipment are just the beginning. You’ll also need to budget for marketing materials, like business cards, a website, and online ads, as well as administrative tools like scheduling software and payment processors.

It’s crucial to differentiate between one-time startup expenses and ongoing costs such as gym rental fees, software subscriptions, and maintaining your website. By outlining your costs ahead of time, you can avoid financial surprises and maintain control over your cash flow.

Moreover, building an emergency fund is essential. This fund will help you cover unexpected costs—like equipment repairs or a drop in client bookings—without having to scramble for money. Don’t end up in a stressful situation that you could have easily avoided. Having a detailed, well-thought-out budget allows you to focus on your clients and growing your business, knowing that your finances are under control.

Key Takeaway: A detailed, forward-looking budget helps you manage both startup and ongoing costs, providing a cushion for unexpected expenses while keeping your business financially stable.

Managing Your Income as a New Trainer

One of the biggest challenges for new personal trainers is managing inconsistent income, especially in the early stages of business. Clients may come and go, and your cash flow can vary month to month. To combat this, setting clear and strategic pricing for your services is essential.

Offering different options, such as one-on-one sessions, group training, and package deals, can help you attract a wider range of clients and encourage long-term commitments. Memberships or recurring payment options are particularly effective in providing stable, predictable income.

Additionally, it's important to track your expenses in real-time. This will allow you to adjust your budget quickly if your income fluctuates more than expected. Using financial management software can help you visualize your cash flow, stay on top of your revenue, and control spending.

Finally, make sure to create an income buffer by setting aside money during high-earning months to cover periods when client numbers dip. This financial cushion will protect your business from the impact of slower periods, ensuring you can continue operating smoothly. Read up on how to grow your personal training business even further here.

Key Takeaway: By setting strategic pricing, offering a variety of services, and closely tracking income and expenses, you can manage cash flow more effectively and create stability in the early stages of your business.

Tax Considerations for Personal Trainers

Taxes are often one of the most overlooked aspects of starting a personal training business, but getting them right from the start can save you major headaches down the road.

As a self-employed professional, it’s important to plan for quarterly tax payments rather than waiting until the end of the year. Many new trainers make the mistake of not setting aside enough money for taxes, leading to cash flow issues when tax season rolls around. Many trainers lack tax guidance and struggle as a result. Just by reading up on this, you’re already setting yourself up better than most do.

Start by saving a portion of your income (generally 25-30%) for taxes as soon as you begin earning. This will ensure that you’re covered when tax payments are due. It’s also crucial to familiarize yourself with common tax deductions available to personal trainers, such as equipment, certifications, gym rental fees, and even marketing costs. These deductions can reduce your taxable income, helping you retain more of your earnings.

Invest in a solid accounting tool or work with a CPA to track these expenses and manage your tax obligations smoothly.

Key Takeaway: Planning for quarterly taxes and maximizing deductions will help you avoid surprises during tax season and retain more of your hard-earned income.

Conclusion: Building a Financially Successful Personal Training Business

Starting a personal training business is as much about financial planning as it is about fitness expertise. By choosing the right business structure, creating a solid budget for both startup and ongoing costs, managing your fluctuating income effectively, and preparing for taxes, you can ensure your business stays financially healthy as it grows.

Financial success doesn’t happen overnight, but with the right strategies in place, your personal training business will thrive for the long term.

Starting a Personal Training Business: Financial Essentials for New Trainers