The cost of starting your own lawn care business can vary depending on several factors, such as the size of the business, the equipment needed, and the marketing strategy. Some of the major expenses include purchasing commercial-grade lawnmowers, trimmers, blowers, and other landscaping tools, as well as a vehicle for transportation. Additionally, one must consider the cost of insurance, licensing, and permits.

In this guide,I will break down the different start-up costs associated with starting a lawn care business and provide tips for minimizing expenses.

Factors that Affect the Costs of Running Your Own Lawn Care Company

In this section, I will discuss some of the most important factors that you need to consider when starting out.

#1 – Equipment Costs

One of the most significant expenses when starting a lawn care business is the equipment. You will need a variety of equipment, including lawnmowers, edgers, leaf blowers, string trimmers, wheelbarrows, and shovels. The cost of this equipment can vary depending on the brand and quality you choose. You can purchase new equipment or consider buying used equipment to save money.

#2 – Insurance Costs

Another crucial expense when starting a lawn care business is insurance. You will need to have general liability insurance and commercial auto insurance to protect your business from accidents and other unforeseen events. The cost of insurance can vary depending on the coverage you choose and the size of your business.

#3 – Licenses and Permits

In most states, you will need to obtain a business license and other permits before you can start your lawn care business. The cost of these licenses and permits can vary depending on your location and the type of business structure you choose. You may also need to obtain a pesticide license if you plan to offer fertilization and pest control services.

#4 – Personnel Costs

If you plan to hire employees, you will need to consider the cost of wages, payroll taxes, and workers’ compensation insurance. The cost of personnel can vary depending on the number of employees you hire and their experience level.

#5 – Marketing Costs

Marketing is crucial when starting a lawn business. You will need to invest in marketing materials such as business cards, flyers, and a website. You may also need to advertise your business in local newspapers and directories. The cost of marketing can vary depending on the methods you choose and the size of your business.

In conclusion, the start-up cost of a lawn care business can vary depending on several factors. It is essential to create a budget and plan your expenses carefully to ensure that you can cover all the necessary costs. By considering the factors discussed in this section, you can make informed decisions and start your lawn care business on the right foot.

Calculating Your Start-Up Costs

Starting a lawn care business requires a significant investment of time and money. As an entrepreneur, I need to calculate the start-up cost to ensure that I have enough capital to cover all the expenses. Here are the steps I take to calculate the start-up cost:

1. Determine the Business Structure: Before calculating the cost, I need to decide on the business structure. It can be a sole proprietorship, partnership, LLC, or corporation. Each structure has its own legal and tax implications, so I need to consult with an attorney or an accountant to determine the best structure for my business.
2. List the Equipment: The next step is to list all the equipment I need to start a lawn care business. It includes mowers, trimmers, blowers, edgers, trailers, and other tools. I can either buy or lease the equipment, depending on my budget and business plan.
3. Estimate the Cost of Equipment: Once I have listed the equipment, I need to estimate the cost of each item. I can research the prices online or visit local dealerships to get a better idea of the cost. It’s essential to factor in the quality and durability of the equipment to ensure that I’m investing in the right tools.
4. Calculate the Vehicle Cost: A lawn care business requires a vehicle to transport the equipment to different locations. I need to calculate the cost of the vehicle, including the down payment, monthly payments, insurance, and maintenance.
5. Add Other Miscellaneous Expenses: Apart from the equipment and vehicle cost, there are other expenses to consider, such as business registration, insurance, marketing, and office supplies. I need to estimate the cost of each expense and add it to the total start-up cost.
6. Determine the Total Start-Up Cost: After calculating all the expenses, I need to add them up to determine the total start-up cost. It’s essential to have a buffer amount to cover any unexpected expenses that may arise.

By following these steps, I can calculate the start-up cost of my lawn care business accurately. It’s crucial to have a realistic budget and plan to ensure the success of the business.

Tips for Reducing the Start-Up Cost

Starting a lawn care business can be a lucrative venture, but it can also be expensive. Here are some tips on how to reduce the start-up cost of your lawn care business:

Grants for Starting a Lawn Care Business

One way to reduce the start-up cost of your lawn care business is to look for grants. There are several organizations that offer grants to small businesses, including those in the lawn care industry. Some of these organizations include:

• The Small Business Administration (SBA)
• The National Association of Landscape Professionals (NALP)
• The National Institute of Food and Agriculture (NIFA)

Before applying for a grant, be sure to read the eligibility requirements carefully. Some grants may require you to meet certain criteria, such as being a minority-owned business or having a specific type of business structure.

In addition to grants, some states and local governments offer tax breaks and other incentives to small businesses. Be sure to check with your local government to see if there are any programs available to help reduce the start-up cost of your lawn care business.

Remember, reducing the start-up cost of your lawn care business doesn’t mean cutting corners. It’s important to invest in quality equipment and materials to ensure the success of your business. By following these tips, you can start your lawn care business on a budget without sacrificing quality.

Final Advice

Starting a lawn care business can be a profitable venture, but it requires a significant investment of time, effort, and money. In this guide, we have discussed the various costs associated with starting a lawn care business, including equipment, licenses, insurance, marketing, and more.

One of the most significant expenses you will incur when starting a lawn care business is the cost of equipment. Do not skip on buying quality equipment. It is essential to invest in high-quality equipment that will last for many years and withstand heavy use. You will also need to purchase a vehicle to transport your equipment to job sites.

Another significant cost is obtaining the necessary licenses and insurance. This includes a business license, liability insurance, and workers’ compensation insurance if you plan to hire employees. It is crucial to research the requirements in your area and ensure that you are properly licensed and insured.

Marketing is another expense that you will need to consider. You will need to develop a website, business cards, flyers, and other marketing materials to promote your business. Social media platforms can also be an effective way to reach potential customers.

It is crucial to carefully consider all of the costs associated with starting a lawn care business and develop a comprehensive business plan that includes a detailed budget. With the right equipment, licenses, insurance, and marketing strategy, you can build a successful and profitable lawn care business.

Many lawn care service owners wonder if they really need insurance, and the answer is yes. In many cases, insurance will be required by law.

But even if not, having adequate insurance coverage will help protect against the unique risks that your business faces.

• An employee may injure themselves while using a string trimmer.
• An employee’s property may be damaged while mowing the lawn.

Accidents can and do happen, and when they cause damage or injury, you will likely be responsible for those costs unless you have insurance.

What Insurance Do I Need for a Lawn Mowing Business?

You know the importance of having insurance, but what type of coverage will you need?

While every business will have its own unique risks, some of the most important coverages to have include:

General Liability

Every business owner should have general liability insurance. General liability provides vital coverage for:

• Property damage: Covers the cost of damage to customer property.
• Bodily injury: If a customer is injured while you’re on the job or at your place of business, general liability will cover their medical bills.

Depending on the insurer, general liability may also provide coverage for:

• Damage to rented property
• Advertising injuries
• Reputational harm

Most small businesses pay $360 – $1,200 per month for general liability insurance.

Business Owners Policy (BOP)

A business owners policy, or BOP, will combine both liability protection and commercial property insurance. If you run your lawn care business out of a physical location, a BOP makes sense.

The commercial property insurance that’s included with this policy will cover:

• The building itself
• Movable property owned by and used by your business

Typically, this type of policy will cover the cost of damage caused by fire, theft, weather, vandalism and other perils.

BOP coverage may also cover loss of income, debris removal and even pollution cleanup if necessary.  The average cost for a BOP policy is $600 – $700 per year.

Workers’ Compensation

If you have employees, you will need workers’ compensation insurance, which will cover the cost of medical care, rehabilitation, lost wages and more if an employee is injured while on the job.

Workers’ compensation insurance is required by law in virtually every state. Each state has its own requirements for workers’ comp, so make sure that you understand these requirements before obtaining coverage.

If you work as a sole proprietor and do not have any employees, you may not need this insurance. Be sure to check your state’s laws to determine whether you will still need this coverage as a sole proprietor.

Commercial Auto

As a lawn care service provider, you will need vehicles to transport your equipment to your job sites. Those vehicles will need to be covered by a commercial auto insurance policy.

A commercial auto insurance policy will provide a number of essential coverages if you or an employee get into an accident while on the job, including:

• Liability
• Physical damage
• Uninsured motorist
• Medical payments
• Hired auto
• Non-owned coverage

A comprehensive commercial auto policy will help cover the cost of property damage and medical care if an accident causes damage or injuries. Costs for commercial auto insurance are based on many factors, but most companies pay between $1,700 and $2,200+ per year.

Business Income Insurance

If your equipment or your truck is stolen, business income insurance will cover your lost income during this time. In fact, these policies will include property damage and theft, so you’ll have your income replaced if:

• Your truck is damaged in an accident
• A lawn mower is stolen from your facility
• Other incidents

Since your equipment is your livelihood, it’s important to have business income insurance. Most businesses will pay between $500 and $1,500 per year in premiums for business interruption.

Commercial Property Insurance

You may or may not need commercial property insurance. Most lawn mowing businesses will only obtain this insurance:

• If they lease a building
• If they purchase a building

The building may be used as office space, or it can be a place to store all of your equipment. In this case, you’ll need commercial property insurance.

If you choose to have a lower deductible, your insurance will be higher.

Most companies pay between $500 and $1,000 per year for commercial property insurance, but prices can range from under $500 to over $1,200. Factors that will determine premiums are:

• Location
• Building size
• Building age
• Use of building
• Security and safety features
• more

Optional: Herbicide and Pesticide Coverage

One of the coverage options that we’re seeing pop up more when securing insurance to mow lawns is herbicide and pesticide coverage. If your lawn business does include using chemicals of this nature, you may be held liable if your customers become sick from these chemicals.

Even if the manufacturer is named in the lawsuit, you’re likely required to pay a portion of the settlement amount.

Determining the cost for this type of insurance is difficult because:

• It’s often added to a liability policy
• Commercial entities, such as golf courses, are often required to have this insurance on their own

You’ll need to discuss adding this insurance with your insurer if you do plan on using herbicides or pesticides as a part of your service.

How Much Is Insurance for Lawn Mowing Business?

Insurance for lawn mowing businesses will vary from state to state, but based on the figures above, you can expect to pay between $3,600 and $6,800. Your premiums may be more if you opt for higher limits or based on the following factors:

• Number of employees
• Location
• Claims history

If you need lawn mowing insurance and are trying to better understand the costs involved, seek out multiple quotes from insurance companies and compare them to find the best value.

In fact, the steps to starting your own lawn care business are pretty straightforward. Below, we walk you through them one by one so you know exactly what you need to do to get your lawn care business off the ground.

10 Simple Steps to Starting a Lawn Mowing Business

1. Conduct market analysis and decide what to offer.

Your first step should be to analyze the lawn care market in your area to identify potential clients and what services they need.

If possible, you should look for gaps in what other lawn care businesses are offering. What needs are going unaddressed? What vacuums are waiting to be filled?

Once you identify real market demand, you will know what you should focus on in terms of your services and marketing. You can then build your business around meeting that demand.

2. Come up with a lawn care business plan.

Next, you need to lay the foundations for a successful business by creating a lawn care business plan. This process will help you get organized and anticipate obstacles and pitfalls. A business plan for lawn care startups should include:

• An executive summary and business overview, including a lawn care business description.
• A list of the services you intend to offer.
• Your market analysis.
• Your budget.
• Your pricing.
• An analysis of what your competitors are doing.
• Marketing strategies.
• Whether you will hire employees, and at what rates of pay.
• Anything else you feel is important in helping you plan your new lawn care business.

If you are applying for financing (see below), make sure you also include a cover letter and table of contents when you put together your business plan. You want to make it as easy as possible for potential lenders to understand what you are building.

3. Raise capital.

Next, you will need to find a source of funding for your equipment, marketing, licensing fees, and any other startup costs.

Hopefully, you already have the money you need to finance your business yourself. But if you do not, you could apply for a personal loan or an SBA-backed loan.

You might have other options as well, depending on your situation. If you own sufficient home equity, for example, you could borrow against it. If you have a supportive family, they might be willing to lend you some of the funds or even donate them outright. The only way to find out is to ask.

If you are having a difficult time with this step, you could always try to start small and build your way up. For example, you could just do lawn mowing in the beginning, and as you make money from your business, you could use it to purchase new equipment and start expanding your services.

4. Register your business and apply for licenses and permits.

Now it is time to register your business with the government and apply for any necessary licenses and permits.

With a lawn care business, this paperwork tends to be pretty minimal. You will need to first apply for a business license. Depending on the types of services you will be performing, you might next need to apply for permits. These are commonly required, for example, if you will be working with herbicides and pesticides.

This is also the time for you to decide on a structure for your business. Different types of business structures include sole proprietorships, partnerships, corporations, S corporations, and limited liability companies (LLCs).

Sole proprietorships are a common default for small business owners, but as a lawn care professional, you should consider forming an LLC.

Why? Well, from a taxation standpoint, operating as an LLC with a small business is no different from operating a sole proprietorship. But there is a massive difference when it comes to liabilities.

If you operate as a sole proprietorship, you and only you are solely responsible for any and all liabilities your business might incur. From a legal standpoint, you and your lawn care company are synonymous.

That means that anything your insurance does not cover, you personally will have to cover. You are on the line for all of it.

But an LLC is a limited liability company. If you form an LLC, you and your business are separate entities. That does not mean you may not sometimes find yourself personally liable for certain things, but it does make it less likely in general that a lien will be put on your personal assets to repay business debts and liabilities.

To avoid personal liability, you need to make sure you are not acting as if your LLC is a sole proprietorship. A lawyer can advise you as to how to conduct your business to minimize your personal liability while operating as an LLC.

With some types of businesses, operating as a sole proprietorship is no big deal, since liabilities are unlikely.

But in lawn care, there is a lot that can go wrong. A tree you are cutting down could injure someone or cause property damage. A pesticide or herbicide you use apply result in problems with a garden’s ecological balance. You could accidentally let the owner’s pet out of the yard, etc. 

Given all the things you could be liable for, it makes sense to give yourself as much protection as possible. So, an LLC may be worth it.

5. Buy your equipment.

Now you are finally ready to start buying equipment for your business. The exact equipment, tools and supplies you need will depend on your specific services. Some examples might include:

• A mower
• An edger
• A leaf blower
• Trimmers
• A spreader
• A sprayer
• Pesticides or other chemicals
• Bags for collecting leaves and debris
• Gloves
• Shears and other hand tools
• Safety equipment

Again, there is nothing wrong with starting small and acquiring more equipment and offering more services as your budget permits. You do not necessarily need to get everything you need all at once.

6. Purchase insurance.

Next, you are going to need to apply for lawn care insurance. At a minimum, this should include general liability insurance. But you might also want to apply for other types of policies such as commercial property insurance, contractor’s tools and equipment insurance, professional liability insurance, commercial auto insurance, business interruption insurance, and (if applicable) workers’ compensation.

On our site, you can discover a lot more information about the different types of lawn care insurance and how you can save money on your policies while still getting great protection for your lawn care business.

7. Start marketing and offering your services.

You now have everything you need to start performing services. But, to do any work, you will need to find clients.

This is often the hardest part of starting any new business (or keeping an established one going, for that matter).

A good way to start is to make a website or social media page for your business, and then get your business listed on Google Maps. Be sure to claim your listing.

Social media groups may allow you further promotional opportunities; just make sure you are allowed to promote on any local groups you join before you do so.

In terms of other forms of local advertising in your community, you could attend local events, host workshops, and advertise on your vehicle.

You also may want to think about where your customers are shopping. If they are trying to do something with their lawn on their own, they might drop by a local hardware store or plant nursery, for example. See if you can drop off business cards there for staff to hand out to customers who might want professional help with their lawn care.

If you can, try and get on a regular schedule with some of your customers for ongoing lawn care. Doing so can help you break free of the “feast or famine” scenario that often goes with self employment.

8. Hire employees if you need them.

Depending on the scale of your prospective business, you might also need to think at this stage about bringing other people onboard.

Hiring employees will allow you to serve a larger geographical area in a shorter amount of time, bringing in more revenue and potentially spreading your name more rapidly throughout the broader community as well.

Of course, employees also bring complications. You need to make sure that you are hiring trustworthy, experienced staff who will be able to carry out their jobs efficiently while minimizing risks to your business. It is also a legal requirement that you purchase workers’ compensation for all staff.

If hiring employees seems like too much to deal with as you are just getting your business going, you could always come back to it later. Just start up doing your own lawn care work, and begin hiring when you feel ready (or not at all, if you want to keep things small).

9. Figure out your accounting and taxes.

One more step you should take early on when starting a lawn care business is coming up with systems and strategies for managing your money.

You should either work with an accountant or do your own accounting on a regular basis so you fully understand the money flowing in and out of your business. That way, you will be able to identify areas where you can cut costs.

Additionally, you should start thinking about taxes immediately. Look up how taxes work for the business structure you have chosen, and do not forget to pay your estimated taxes. Doing so from the start will help you to avoid underpayment penalties.

You should also learn about self-employment taxes, the tax impacts of earning income unevenly throughout the year, and other tax issues specific to small businesses.

10. Continue to assess and adjust to seize new opportunities.

In the weeks, months, and years after you launch your lawn care business, you should regularly evaluate your progress. Are you meeting your goals or falling short? If you are meeting your goals, are you ready to aim for higher ones?

Along with looking for ways to better meet your budget, you should try to refine your hiring strategies, marketing techniques, and the methods you use for lawn care itself. That way, you can continue to boost revenue, increase customer satisfaction and grow your business.

Need Help Forming an LLC for Your Lawn Care Business?

Now you know the basics of how to start a lawn care business, including how to draft a business plan, structure your company, and find your first customers.

Creating an LLC is simpler than creating a corporation, but does involve more legwork than creating a sole proprietorship. Need help forming an LLC for lawn care? Click below to quickly start your LLC with a fast and easy online process.

A few questions to ask are:

• Do I need a lawn care LLC?
• Can I operate as a sole proprietorship?
• What are the pros of an LLC?

Do I Need an LLC To Mow Lawns?

No, but they are very beneficial. If you’re mowing your neighbor’s lawn or a friend’s lawn, you likely don’t need an LLC. However, an LLC would help offer you protection for events that may only happen in 1 out of 10,000 mows.

For example, if a customer claims that you caused property or bodily injury, they can sue you.

If you’re a sole proprietor, there’s no division between you and your business. A lawsuit without an LLC can lead to you being liable for incidents out of your control and can involve your:

• Car
• Home
• Savings

A lawn care LLC offers limited liability protection, keeping your personal assets from being involved in a lawsuit.

Lawn Care LLC or Sole Proprietorship?

Most lawn care businesses will benefit from incorporating as an LLC. Simple and inexpensive, you can form an LLC for cheap, and they’ll offer numerous key benefits, such as:

• Limited liability, meaning that your home, car and savings accounts are protected in the event that a settlement against the business occurs.
• LLCs have more tax options and benefits than sole proprietorships.
• Businesses that are an LLC are seen as more credible by potential customers.

Limited liability is a protection that cannot go understated in your decision to incorporate. If your business is involved in a lawsuit or defaults on debt, creditors cannot come after your personal assets.

Even if you have general liability insurance, there’s always the chance that:

• Insurance won’t cover the full cost of the claim
• A judge will request your assets be liquidated to pay the debt

With an LLC that is operated properly without co-mingling any assets, you’re shielded from liability. Instead, the creditor or judge can ask the business to pay the debt, but the owners of the lawn care business are personally shielded from liability.

Why?

The corporate veil. A corporate veil protects owners from being held liable for business debts. However, there are certain rules that you must also follow to ensure that you don’t pierce the veil, such as not co-mingling bank accounts.

Sole Proprietorship

Anyone can be a sole proprietor if they are a legal citizen. While you can start operating your lawn care business a day or two earlier, you will be solely liable for the business. What does this mean?

You’re:

• 100% liable in the event you’re sued
• 100% responsible for any judgments against you
• At risk of having to liquidate assets to satisfy judgments

Additionally, if you do not incorporate, you’re also at a business disadvantage because your business will not be seen as “professional,” and it can be very difficult to raise capital. If you do grow the company into a successful entity, you’ll find it more challenging to sell the business.

In terms of taxation, an LLC is treated as a pass-through entity, meaning it will be taxed as a partnership or sole proprietorship. For example, if you’re the only employee, the net income of the business will pass to you and be filed on your own individual tax return.

You’ll be taxed based on the owner’s tax bracket in this case.

However, with an LLC lawn care business organization, you can always treat your business as an S Corp. The benefits here are the option of being able to reduce your tax burden and may even be able to minimize self-employment taxes.

There are many benefits to incorporating as an LLC, and the tax savings alone can help offset the initial incorporation costs.

Forming a Lawn Care LLC is Easy

Starting a lawn care business is a decision to have financial freedom. You have a lot of great opportunities in an ever-in-demand business. However, the initial steps that you take to open your business can have lasting consequences for your business.

Opening your lawn care business as a sole proprietorship may seem like the easy, logical choice, but an LLC will provide:

• Liability protection
• Tax choices
• Peace of mind

While you may not need to have an LLC to start your business, it’s the right legal decision in the long term. You may never be involved in a lawsuit or go bankrupt, but if you are, the small cost of an LLC will protect your savings and home from being taken to satisfy your debts.