How to Start a Landscaping Business: Seven Steps to Take

Maintaining a yard is a lot of work, and many homeowners would prefer to hire someone to handle this chore. As it turns out, choosing to start a landscaping business can be very lucrative. Landscaping businesses are booming, and while they’re not the cheapest business to set up, they aren’t the most expensive either, and it’s relatively easy to get started. So, if you’ve been thinking about starting your lawn care company, we’ll walk you through some things to consider as you start a lawn care business. Through a series of steps, we’ll help answer the question, “What do you need to start a landscaping business?” Plus, we’ll show you how Block Advisors can help along the way.

Step 1: Create a landscaping business plan

The first step in starting any business is creating a well-thought-out business plan. The plan can resemble a traditional business plan but is tailored to your specific business needs.

First, figure out your business goals and objectives and how you plan to achieve them. This includes things like figuring out your business’s who, what, and why.

Then, your plan should outline the specific services you will provide, any specializations you may have, the tools and equipment you need to get started, and a general idea of your start-up budget. Do some research about competitors in your area. Brainstorm how you will reach customers and differentiate yourself in the market.

The business plan should hash out details of your business. For example, do you want to rent or buy equipment? Will you need to hire employees? The answers to these questions will help you set up your business and keep it running smoothly.

Step 2: Register your lawn care business

Next, you’ll have to register your business entity. This includes choosing a name for your landscaping business and registering it with the state. Choosing a business entity is an important step. While you can be a sole proprietor, setting up an LLC or corporation may be attractive, too. Not sure which structure to choose? Block Advisors’ business formation services can help you weigh the pros and cons of each type.

For whichever structure you choose for your landscaping business, you’ll have to complete the related paperwork and file it with the state you’re operating in. The registration process varies by state, so look at the Secretary of State’s website for your needs. 

Step 3: Get the required insurance, licenses, and identification numbers

Preparation meets opportunity when you get the required landscaping business insurance, license, and identification numbers.

Business insurance for landscaping

There are a few types of business insurance for landscaping. You’ll need to obtain them before you can start doing any business. Insurance is crucial even if your landscaping business starts small with few (or no) employees. A Business Owners Policy, or BOP, is an excellent place to start. A BOP bundles three essential coverage types: business liability insurance, commercial property insurance, and business interruption insurance.

And if you hire employees, almost every state requires that you have workers’ compensation insurance.

Other types of business insurance that you may want to have in your policy are inland marine insurance, commercial auto and property insurance, and professional liability insurance.

Landscape business licensing

In some states, you must acquire a landscaping or gardening license to operate your business legally. Each state’s licensing process is different, so check with your state to ensure you have the correct licenses. If you plan on using pesticides as a part of your landscaping business, some states require a pesticide charter you’ll need to acquire.

Tax identification numbers & documents

Once registered with the state, you can file for an employer identification number (EIN) with the Internal Revenue Service (IRS). The IRS uses your tax ID number as a unique identifying number. You should use it to pay your landscape business’ state and federal income taxes.

If you are assembling a team for your landscaping business, you’ll first need to decide whether you’ll hire independent contractors and/or employees. Once you’ve decided, you’ll need to have some Form W-2s (employees) and Form W-9s (independent contractors) ready.

(Related: Learn more about hiring independent contractors vs employees and the tax filing requirements for each).

Step 4: Open a business bank account

After you’ve been issued a tax identification number and completed the registration paperwork, you can open a business bank account to separate your personal and business finances. It can help you stay organized when tracking expenses and getting a clear picture of your business’s financial status.

Step 5: Set your prices

You can promote your services now that you’ve registered your business and obtained the necessary permits. Set your rates and make sure that they cover your overhead so they leave a profit for you. If you need help figuring out where to start with pricing, see what other landscaping companies in your area charge on average for comparable services. Remember, you can adjust prices as you go.

Step 6: Create a marketing plan

Your business is established, and your rates are set – now it’s time to market your new company! There are several ways to get your business out there. You could start simply by knocking on doors to hand out business cards or rely on word-of-mouth. You could also look into creating social media accounts, launching a website, buying ads in local newspapers, or doing direct outreach to other businesses.

Step 7: Keep your business financials in order

A lot goes into running a business; keeping your finances in order and staying on top of bookkeeping is a top priority. You’ll need to keep your business expenses, schedules, and accounts. Accurate record-keeping helps you forecast your business’s needs, quickly produce records if requested, and stay compliant with your tax responsibilities. See how Block Advisors’ bookkeeping services can help.

How Block Advisors can help your small business

Starting a landscaping business – or any small business for that matter – is no easy task. If you’re feeling overwhelmed by the steps needed to start your business, don’t worry. Block Advisors has the tools to help you form your business quickly and confidently. Get back to doing what you love while we work with the state to file your paperwork with 100% satisfaction guaranteed.

Our taxes, bookkeeping, payroll, and incorporation services are designed with small business owners like you in mind.

Speak with a certified small business pro to start forming your business today.

This article is for informational purposes only. The content may not constitute the most up-to-date information and should not be construed as legal advice. 

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