How to Start a Lawn Care Business Legally: 10 Steps to Success

If you enjoy working outdoors, being your own boss, and have a passion for creating beautiful lawns, starting a lawn care business could be the perfect career move. 

The lawn care industry offers immense potential, with opportunities to grow from a one-person operation to a million-dollar enterprise. To ensure success, it’s crucial to understand the essential steps involved in starting and running a lawn care business legally and efficiently.

In this comprehensive guide, we’ll cover everything you need to know, from gaining hands-on experience to registering your business, obtaining the necessary licenses and insurance, deciding on services, pricing strategies, marketing tactics, and scaling your operations. 

By following these steps, you’ll be well-equipped to launch and grow a thriving lawn care business.

1. Get hands-on experience

Before diving into entrepreneurship, it’s essential to have a solid understanding of the lawn care industry and the skills required to deliver top-notch services. Hands-on experience is the best way to gain this knowledge.

One option is to work for an established lawn care company for a year or two. This will allow you to learn the ropes, from operating various equipment to understanding the intricacies of lawn maintenance and customer service. 

Alternatively, you can offer discounted services to friends, family, and neighbors, providing you with practical experience while building a reputation in your local community.

Whichever route you choose, gaining hands-on experience will not only equip you with the necessary skills but also give you a better understanding of the challenges and opportunities within the industry.

2. Register your business

Once you’ve acquired the necessary experience, it’s time to make your lawn care business official by registering it with the appropriate authorities.

Read More : How to Start an ATM Business in 5 Steps: A Comprehensive Guide

Pick a business structure

The first step is to choose the right business structure for your lawn care company. The structure you select will impact various aspects, including taxes, liability, and operational procedures. Here are the most common options:

1. Sole Proprietorship: This is the simplest structure, where you are the sole owner of the business. It’s easy to set up and offers complete control, but you’ll be personally liable for any debts or legal issues.
2. Partnership: If you plan to run the business with one or more partners, a partnership structure may be suitable. However, each partner is personally liable for the company’s obligations.
3. Limited Liability Company (LLC): An LLC is a popular choice for medium to high-risk businesses, as it provides personal liability protection. The company’s assets are separate from your personal assets, shielding you from potential legal issues or debts.

Consider factors such as the level of risk involved, potential for growth, and tax implications when choosing the appropriate structure for your lawn care business.

Apply for an employer identification number (EIN)

If you plan to hire employees or operate as a partnership or corporation, you’ll need to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). 

This nine-digit number is used for tax reporting purposes and is essential for keeping your personal and business finances separate.

Register your lawn care business name

Once you’ve settled on a business structure, it’s time to choose a name for your lawn care company. Select a name that reflects the services you offer and resonates with your target audience. 

After deciding on a name, you’ll need to register it with the appropriate state or local authorities. In the United States, you can trademark your business name and register your domain name to protect your brand if no other business in your state is using the same name. 

In the United Kingdom, the process involves checking name availability, searching for trademarks, and registering your company name and business.

Get a business license

Most states and localities require businesses to obtain a license or permit to operate legally. Contact your local Chamber of Commerce or the Small Business Administration (SBA) to determine the specific licenses and permits required for your lawn care business.

If you plan to offer services involving the application of pesticides or other regulated substances, you may need to obtain additional licenses or certifications from your state’s Department of Agriculture or Environmental Protection Agency.

3. Get the right insurance

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Running a lawn care business comes with inherent risks, such as property damage, personal injury, or equipment theft. To protect yourself and your business, it’s essential to have the appropriate insurance coverage in place.

Here are some of the most common types of insurance you’ll need:

1. General Liability Insurance: This coverage protects your business from claims of property damage or personal injury caused by your operations.
2. Commercial Auto Insurance: If you plan to use vehicles for your lawn care business, commercial auto insurance is a must. It covers accidents, theft, or damage involving your company vehicles.
3. Commercial Property Insurance: This insurance covers any damage or loss to your business property, such as equipment, tools, or a physical office space.
4. Workers’ Compensation Insurance: If you plan to hire employees, workers’ compensation insurance is required in most states. It provides coverage for employees who sustain work-related injuries or illnesses.

Many insurance providers offer Business Owner’s Policies (BOPs), which bundle various types of coverage into a single policy, often at a discounted rate. 

Work with an insurance agent to determine the specific coverage your lawn care business requires and tailor a policy accordingly.

4. Research and Secure Your Equipment

When starting a lawn care business, you’ll want to keep costs low, but you need to invest in quality tools. Don’t spend all your money buying every piece of equipment. Instead, figure out the few key items you’ll need for your first few jobs to do high-quality work.

Consider these factors:

• How many upcoming jobs you have scheduled
• The types of lawns and gardens you’ll be caring for
• Your budget
• How much you’ll need to charge to cover costs

For example, small front yards may only need a manual push mower, but larger fields or meadows might require a lawn tractor.

Think about these categories:

• Extras: Will you need extra tools for smaller jobs (like pruning shears or trimmers)? Don’t forget protective gear like ear and eye coverings, gloves, and safety shoes or boots.
• Transport and storage: You’ll likely need a vehicle to transport your tools between properties and a secure place to store equipment overnight to prevent theft or break-ins.
• Cleaning up: Consider a leaf blower, rake, and gardening trash bags. Some areas also charge for commercial and green waste disposal, so check the rules where you’ll operate.

Next, plan your budget. You can always buy or rent more tools later once you know what you use regularly. Remember to factor in your initial business investment costs when setting prices.

Your expenses will depend on the tools and where you buy them, but expect to spend approximately:

• New push mower: $170-350
• Pruning shears: $25-40
• Leaf blower: $30-150
• Wheelbarrow: $80-140

As Trevor Kokenge explains, “When I started, I was broke. I put a few hundred dollars into some used tools. It didn’t take much to get going, maybe $300, but expenses grow as you build. I highly recommend starting with a leaf blower, string trimmer, and shears.”

For expensive, one-off equipment needs, consider renting tools instead of buying.

At each stage, check regulations – like rules around storing pesticides or using purchased items commercially. Tools like Homebase can help stay compliant by sending reminders about updating licenses/certifications when laws change.

5. Set up your business banking and accounting

Separating your personal and business finances is crucial for maintaining accurate records, simplifying tax filing, and building credit for your lawn care business. Start by opening a dedicated business checking account and credit card.

Next, develop a monthly budget that accounts for your anticipated expenses, such as payroll, insurance premiums, equipment maintenance, marketing costs, and operational overhead. Review and adjust this budget regularly as your business grows and circumstances change.

Implement a system for tracking your income and expenses throughout the year. This will not only help you stay organized but also ensure accurate tax filing. 

In the United States, you’ll file your business taxes with the Internal Revenue Service (IRS), while in the United Kingdom, you’ll file with Companies House.

6. Decide what lawn care services to offer

As a new lawn care business owner, it’s wise to start small and focus on offering basic lawn maintenance services. This approach will allow you to build a customer base and generate revenue without a significant upfront investment in specialized equipment.

Some essential services to consider offering initially include:

• Mowing and basic lawn maintenance: This includes grass cutting, trimming, weeding, and edging around driveways and walkways. All you’ll need to get started is a reliable lawn mower and a string trimmer.
• Seasonal services: Market your lawn care services as spring and fall cleanups, as well as winter snow removal and landscaping services in colder climates.
• Fertilization and weed control: Offer fertilizer application and weed control services to keep your clients’ lawns healthy and green. These services require minimal additional equipment and can provide a steady revenue stream.

Start with this free lawn care service list

As your business grows and your cash flow improves, you can expand your offerings to include more specialized services, such as:

• Leaf blowing
• Dethatching or power raking
• Lawn aeration
• Grading
• Mulch installation and garden work
• Sod installation
• Lawn returfing
• Lawn pest control and insect control
• Tree trimming and pruning
• Shrub care

Pay attention to the requests from your existing clients and the services offered by your competitors to identify new opportunities for service expansion.

7. Purchase lawn care equipment and tools

To effectively deliver your lawn care services, you’ll need to invest in the right equipment and tools. At a minimum, you’ll need a reliable truck or trailer to transport your gear, as well as the following essentials:

• Lawn mower
• String trimmer
• Edger
• Leaf blower
• Gardening gloves
• Gas cans
• Lawn bags

What type of lawn mower should you invest in?

The type of lawn mower you choose should depend on the size of the properties you’ll be servicing and the scope of your operations.

• Push mower: These are the most affordable option and work well for smaller yards. They’re easy to use and maintain, making them a great choice for new lawn care professionals.
• Walk-behind or self-propelled mower: More powerful and efficient than push mowers, these machines can tackle thicker grass and cover more ground in less time. However, they come at a higher price point.
• Riding lawn mower or lawn tractor: For large-scale jobs or properties with extensive lawn areas, investing in a riding mower or lawn tractor may be necessary. These heavy-duty machines can cut swaths up to 48 inches wide, significantly increasing your productivity.

How much does lawn care and landscaping equipment cost?

The initial investment in lawn care and landscaping equipment can range from $715 to $1,515. Here’s a breakdown of what you can expect to spend on new equipment:

• Gas-powered push mower: $170–$350
• Corded electric string trimmer: $20–$80
• Electric edger: $100–$175
• Handheld leaf blower: $20–$130
• Lawn aerator: $200–$300
• Power rake: $100–$300
• Plastic wheelbarrow: $80–$130
• 3-pack of pruning shears: $25–$50

As your business expands and you start offering more specialized services, you may need to invest in additional tools and machinery, such as spreaders, sod cutters, or stump grinders.

Invest in lawn care business software

In today’s digital age, investing in lawn care business software can streamline your operations and boost efficiency. The right software solution can help you manage client details, schedule jobs, create optimized routes, generate invoices, and process payments seamlessly.

One example is Jobber’s lawn care business software, which offers features like:

• Mobile app access: View client details and job histories from the cab of your truck.
• Intelligent scheduling: Automatically create efficient routes to fit more jobs into each day.
• Batch invoicing: Generate and send multiple invoices simultaneously.
• Automated payments: Save client payment information for recurring services like weekly lawn maintenance.

By leveraging technology, you can improve your productivity, enhance customer service, and ultimately grow your lawn care business more effectively.

8. Price your lawn care services

Pricing your services fairly and profitably is crucial for attracting and retaining customers while ensuring your business remains viable. Follow these steps to determine the right pricing strategy:

1. Research local rates: Investigate what other lawn care companies in your area are charging for similar services. This will help you set competitive pricing.
2. Calculate labor costs: Factor in your hourly wage, as well as wages for any employees or subcontractors you plan to hire.
3. Account for overhead, equipment, and material costs: Include expenses like insurance premiums, equipment maintenance, fuel, and any materials required for specific services.
4. Determine your desired profit margins: Decide on a reasonable profit margin that covers your costs while allowing for business growth and reinvestment.

Once you have these figures, decide whether you’ll charge an hourly rate or offer flat-rate pricing for specific services. 

Hourly rates work well for larger commercial contracts or jobs with variable timelines, while flat rates are better suited for predictable, routine tasks like mowing or spring cleanups.

Create a comprehensive lawn care pricing chart that lists your service costs per square foot, per hour, or as flat rates. This will help you provide consistent and accurate estimates to potential clients.

How much do lawn care businesses make?

The earning potential for lawn care businesses can vary greatly, with some owners making $10,000 per year and others reaching six figures or more. Factors that influence your income include:

• Team size and efficiency
• Range of services offered
• Profit margins on each service
• Number of active clients
• Geographic location and cost of living

According to industry reports, profitable lawn care businesses can generate annual revenues ranging from $60,000 to $200,000 or more. 

By carefully managing costs, offering a diverse range of services, and continuously marketing to acquire new clients, it’s possible to build a highly lucrative lawn care enterprise.

9. Get your first lawn care customers

Once you’ve laid the groundwork for your lawn care business, it’s time to start attracting customers. Implement a multi-faceted marketing strategy to increase your visibility and reach potential clients in your service area.

Here are some effective marketing ideas to consider:

• Develop a strong brand identity: Design a professional logo, choose a color scheme, and establish a consistent look and feel for your company’s marketing materials.
• Create a website: Build an informative website that showcases your services, service areas, pricing, and customer testimonials. Ensure it’s optimized for local search.
• Utilize local advertising: Distribute door hangers, flyers, and postcards in your target neighborhoods. You can also explore local print, radio, or TV advertising opportunities.
• Leverage social media: Establish a presence on platforms like Facebook, Instagram, and NextDoor. Share before-and-after photos, promotions, and engaging lawn care tips.
• Claim online business listings: Ensure your lawn care business is listed on Google Business Profile, Bing Places, and other online directories.
• Offer referral incentives: Encourage existing customers to refer their friends and neighbors by offering discounts or other incentives.
• Wrap your vehicle: Turn your truck or trailer into a mobile billboard by wrapping it with your company’s branding and contact information.
• Network and build partnerships: Attend local community events, join business associations, and explore partnership opportunities with related businesses like landscapers or home service providers.

Consistent and targeted marketing efforts will help you build brand awareness, establish credibility, and attract your first wave of loyal customers.

10. Hire employees and grow your business

As your lawn care business gains traction and your client base expands, you’ll likely need to hire additional staff to keep up with the demand. 

Building a team not only increases your capacity but also frees up time for you to focus on business development, marketing, and strategic planning.

How much does it cost to start a lawn care business?

The initial startup costs for a lawn care business can range from $755 to $1,360, depending on the equipment and services you plan to offer. If you don’t already have a reliable truck or trailer, you may need to factor in an additional $30,000 or more for a suitable vehicle.

Here’s a breakdown of potential startup costs:

• Lawn mower: $170–$350
• String trimmer: $20–$80
• Edger: $100–$175
• Leaf blower: $20–$130
• Miscellaneous tools and supplies: $200–$400
• Business registration and licensing fees: $75–$400
• Initial insurance premiums: $100–$300

Remember, these are just estimates, and your actual startup costs may vary based on your location, the condition of any used equipment you purchase, and the specific services you plan to offer.

When hiring employees or subcontractors for your lawn care business, follow these best practices:

• Determine worker classification: Decide whether you’ll hire traditional employees or independent contractors (subcontractors). This decision will impact your tax and insurance obligations.
• Write detailed job descriptions: Clearly outline the responsibilities, qualifications, and expectations for each role you’re hiring for.
• Post job listings: Utilize online job boards, social media, and local classifieds to advertise open positions.
• Conduct thorough interviews: Prepare a list of questions to assess candidates’ skills, experience, and cultural fit.
• Check references and background: Verify employment history, certifications, and conduct background checks as needed.
• Provide comprehensive training: Implement a structured training program to ensure new hires are proficient in using equipment, following safety protocols, and delivering consistent service quality.

As your team grows, you may need to invest in additional equipment, vehicles, and potentially a physical office or workspace. Carefully manage your cash flow, reinvest profits into expanding your operations, and continuously seek opportunities to increase efficiency and productivity.