How to Start a Recruiting Agency in the US (Even If You're Solo)

Starting your own recruiting agency might sound intimidating, but if you're already sourcing or hiring for others, you're halfway there. With the rise of contract roles, remote work, and AI-driven tools, 2025 is shaping up to be the best time in a decade to go independent.

This guide breaks down how to launch a solo recruiting business in the US step-by-step, without fluff. Whether you're freelancing on the side or ready to build your own client roster, here's how to get started.

1. Why Start a Recruiting Agency in 2025?

The demand for recruiters in the US has shifted. Startups want speed and specialization. Larger companies are leaning on contractors to fill gaps fast. More than ever, founders want recruiters who can deliver vetted candidates, not "applicants".

Going solo lets you:

• Control your income (top freelance recruiters report $120K+ annually)
• Work with clients you actually like
• Build a business with low overhead

It doesn't take a team of 10 or a fancy office. Many successful solo recruiters run lean with just a laptop, a sourcing platform like Glozo, and a few good clients.
For more on where the market is headed, see Predicting the Next Hiring Wave.

2. Legal & Financial Setup

Registering your business is the easy part. In the US, most solo recruiters set up as an LLC or sole proprietor. You can do this online in most states for under $200.

You’ll also need:

• An EIN (free from the IRS)
• A separate bank account
• Tools for invoicing (like Wave, PayPal, or Stripe)

Optional but smart:

• Business liability insurance
• Simple client contracts (you can use free templates or tools like Bonsai)

This setup gives you a professional foundation and protects your personal finances.

3. Pick a Niche (Seriously)

Trying to serve "everyone" will slow you down. The fastest way to get traction is to focus on one type of role or industry.
Start with what you know. Closed tech sales roles before? That’s a niche. Worked in healthcare staffing? Start there.

In 2025, high-demand niches in the US include:

• Product management
• Sales & RevOps
• AI/ML engineers
• Healthcare and allied health

Clients don't want generalists. They want someone who "gets" their space and can deliver. You don’t need thousands of candidates. You need 3–5 highly relevant ones for each role.
Need ideas? Check out Mastering Passive Candidate Sourcing.

4. Your Recruiting Stack

You don’t need an enterprise ATS to get started. In fact, your goal should be speed and clarity. Here’s a simple stack to run your agency:

Must-haves:

• Glozo (sourcing, messaging, and AI-powered insights in one)
• Google Workspace or Notion (CRM, project tracking)
• Calendly (scheduling calls)
• HelloSign (digital signatures)

Nice-to-haves:

• QuickBooks or FreshBooks (invoicing, taxes)
• Loom (explainer videos for clients or candidates)

For a full tool list, see 22 Free Tools Every Recruiter Should Use in 2025.

5. Finding Clients (Without Feeling Spammy)

Start with your own network. Reconnect with past coworkers, hiring managers, or founders. A simple DM like:

"Hey [Name], I just started a solo recruiting practice focused on [your niche]. If you ever need help filling [role types], happy to share how I work."

Beyond that:

• Join founder Slack groups and startup communities
• Share small wins or sourcing tips on LinkedIn 2x/week
• Cold outreach works if it’s relevant. Keep it short, focused on the client’s pain (not your service), and follow up politely.

More tactics: Talent Sourcing Strategies for Success

6. Sourcing & Submitting Candidates

Your real value isn’t just "finding" people, it’s presenting the right ones fast.

With Glozo, you can:

• Skip Boolean and use natural language to search
• Access profiles across 30+ databases
• See candidate openness signals
• Message directly (no jumping tools)

Create a shortlist and send candidates with a 2-line summary of why they match. Quality beats quantity. Clients will remember who brought the strongest fit, not who sent 20 resumes.

7. Pricing & Getting Paid

There’s no one-size model, but here’s what most solo recruiters use:
Success fee (15–20%): Most common. You’re paid once a hire is made.
Flat fee ($3K–$7K): Works for high-volume roles or startups on a budget.
Hourly ($50–$100/hr): Great for sourcing-only retainers or embedded work.
Start simple. Use clear agreements, send professional invoices, and track payments.

8. Growing from Solo to Boutique (Optional)

Some recruiters stay solo and love it. Others bring on a sourcer or VA to scale. When you’re at capacity, consider:

• Hiring a freelance sourcer (test them with one project)
• Building SOPs so others can replicate your process
• Using Glozo to manage sourcing + outreach centrally

Don’t rush. One good client and one strong hire can build the momentum you need.

Bonus: Starter Template Pack

1. Cold Email to Potential Client

Subject: Helping you hire [role type] fast
Hi [First Name],
I specialize in [your niche] recruiting and noticed you're growing your team. I can help you quickly connect with passive candidates who match your exact criteria. Would you be open to a quick intro call?
– [Your Name]

2. Candidate Submission Format

• Name: John D.
• Role: Senior Product Manager
• Why: 5+ years in fintech, recently led launch of B2B payments product
• Status: Open to new roles, interviewed 2x in past month

FAQ

Q: Do I need LinkedIn Recruiter to get started? A: No. Tools like Glozo cover passive candidate discovery and outreach without the hefty price tag.

Q: How many clients should I take on at first? A: 1–2 is enough. Focus on great delivery, not volume.

Q: What if I don't have a recruiting background? A: Start by sourcing for other recruiters or partner with someone who needs help.

Q: How long does it take to close a first deal? A: Most solo recruiters land their first client within 30–60 days if they actively pitch.

Q: What tools are absolutely necessary to begin? A: Glozo for sourcing/outreach, a calendar tool, invoicing software, and a way to track clients.

TL;DR

To start a recruiting agency in the US:

• Set up a basic legal and payment structure
• Choose a niche you know well
• Use a lean tech stack (Glozo does most of the heavy lifting)
• Focus on 1–2 clients to start
• Deliver high-fit candidates quickly

You don’t need a huge team or big investment. You need clarity, a few good tools, and the discipline to follow through.

Further reading. Our industry reports:
- Critical factors shaping IT Recruitment in 2025
- Key trends shaping finance hiring and salaries in 2025
- 2025 Banking recruitment and salary trends‍