Teaching in your home or your students' is best, IMO. If you decide to go the music studio route, try to rent a room...like stations at the barber's or hairdresser's.
I once was an independent contractor for a service which sent out tutors...no benefits, had to pay my own taxes (no contribution by the employer for SS) and, worst of all, the agency took half the tuition!
They finally went bankrupt, and I have been on my own ever since...