How to start a landscaping business: Simple steps for success

Published Thursday 29 January 2026

Table of contents

• Why start a landscaping business?
• Choose your landscaping business model
• Estimate your startup costs
• Steps to start your landscaping business
• Manage your landscaping business finances with confidence
• FAQs on starting a landscaping business

Key takeaways

• Choose a specific business model early by focusing on either recurring services like lawn care and maintenance for steady income, or project-based work like garden design and hardscaping for higher-value contracts.
• Form a limited liability company (LLC) to protect your personal assets from business debts and lawsuits, which is crucial in the physically demanding landscaping industry.
• Start with essential equipment like mowers, trimmers, and hand tools, and consider renting expensive items initially to manage startup costs while you establish your client base.
• Establish your target market by deciding between residential homeowners for easier entry and custom work opportunities, or commercial properties for larger contracts and higher margins.

Why start a landscaping business?

Starting a landscaping business offers significant benefits for outdoor enthusiasts. You can be your own boss, set working hours, choose clients, and control pricing.

However, consider the challenges before launching. The work involves physical labor and weather dependency, and some regions experience slow winter seasons.

Benefits of owning a landscaping business include:

• Schedule flexibility: Set your own working hours and choose preferred clients
• Financial control: Determine your pricing and manage business finances directly
• Outdoor work environment: Spend time outside while shaping local environments
• Earning potential: High-quality services can command premium pricing
• Business autonomy: Make all major decisions about operations and growth

Challenges of landscaping business ownership include:

• Physical demands: Work involves heavy lifting, outdoor labor, and long hours
• Weather dependency: Rain, snow, and extreme temperatures can halt operations
• Seasonal fluctuations: Winter months may reduce revenue in colder climates
• Business management stress: Handling finances, scheduling, and client relations requires ongoing attention

Find out about using Xero to stay on top of your cash flow and get paid.

Choose your landscaping business model

Before you start, decide on the services you'll offer. Your business model defines your target customers, the equipment you'll need, and your potential for recurring revenue. Most landscaping businesses focus on one or more of these areas.

• Lawn care and maintenance: Offer recurring services like mowing, fertilizing, and weeding for residential or commercial clients. This model provides steady, predictable income.
• Garden design and installation: Focus on one-off projects creating or renovating garden beds, planting shrubs, and arranging outdoor spaces. This allows for more creativity and higher-value projects.
• Hardscaping: Specialize in installing patios, walkways, retaining walls, and other non-plant elements. This work is often project-based and requires specialized skills and equipment.
• Commercial landscaping: Serve businesses, apartment complexes, and public spaces. These contracts are often larger and longer-term but can be more competitive to secure.

Estimate your startup costs

Understanding your initial investment is a critical step. While you can start with minimal funds by renting equipment, planning for key expenses will help you set realistic financial goals. Your startup costs will likely include several of the following.

• Equipment: Mowers, trimmers, blowers, and hand tools are essential. You can buy new, used, or rent to manage initial cash flow.
• Business registration and licenses: Fees for forming your limited liability company (LLC) or other entity, plus any state or local permits.
• Insurance: General liability and commercial auto insurance are crucial for protecting your business from day one.
• Vehicle: A reliable truck or van to transport your equipment and materials.
• Marketing: Business cards, a simple website, and online directory listings to attract your first clients.
• Software: Accounting software like Xero to track expenses, send invoices, and manage your finances.

Steps to start your landscaping business

Formalizing your landscaping business involves completing legal, financial, and operational requirements to operate legally and attract customers. Follow these 14 steps to establish your company properly.

If this is the first time you are creating a business, you can read the guide to how to start a business for even more tips.

1. Choose your business name

Select a memorable name that reflects your services and is easy for customers to remember. Check that your preferred name is available as a domain name and isn't already registered in your state. Consider how the name will look on business cards, vehicles, and marketing materials.

2. Form your business's legal structure

Business structure determines your legal liability, tax obligations, and operational requirements. The three most common structures for landscaping businesses offer different levels of protection and complexity.

• Sole proprietorship: This is a business operated by a single person. It's the easiest structure, as all the profits and losses are received by the owner and reported on their personal income tax return. However, this structure doesn't offer legal protection, and the owner's personal assets may be at risk if they are sued or if anything goes wrong.
• S corporation: This corporate legal structure has special tax characteristics and is commonly used by landscaping companies. The name comes from the IRS classification of this type of business. In an S corporation, the owners are also employees, and unlike a traditional C corporation, it helps businesses avoid double taxation.
• Limited liability company: A limited liability company (LLC) can give owners some legal protection and flexible options for ownership and taxation. Some LLC owners also elect S corporation tax treatment. LLC liability protection is not complete, and owners can still be personally liable in some situations. LLCs are created under state law, so check your state or local government requirements.

3. Develop your business plan

A business plan outlines your landscaping company's goals, strategies, and financial projections. This document helps secure funding, guides decision-making, and measures progress toward growth targets.

You can use this business plan template.

Your business plan should consider each of the following areas:

• Executive summary: Brief overview of your plan.
• Company overview: An overview of your company, vision, mission, owners.
• Industry analysis: Overview of the industry, government regulations, details of your services, and potential risks.
• Customer analysis: Your likely target customer.
• Competitive analysis: Who your key competitors are.
• Marketing plan: How and where you want to advertise.
• Operations plan: Procurement, office location, key asset management.
• Management team: This is your leadership team.
• Financial plan: How you will finance your business and startup. This ideally includes information for the next three years.
• Insurance plan: You'll need to determine what is the best insurance coverage for your business.

4. Register for a business license and needed permits

Business registration establishes your company as a legal entity and enables tax filing, banking, and loan applications.

Required registration steps include:

• State business registration: File with your secretary of state office
• Doing business as (DBA) registration: Required when you use a trade name that is different from your legal business name
• Business license application: Submit required documentation and fees

Information required for a business license usually includes:

• business name
• business location
• ownership, management structure, or directors

Some states also require permits or industry-specific licenses. You can check with your state's secretary of state office or similar government office to find out which permits you need. Some common permits and industry licenses include:

• landscaping license
• permit for handling pesticides or fertilizers
• contractor license surety bond

5. Apply for an EIN

An EIN (Employer Identification Number) is a unique federal tax ID required for paying business taxes and opening business bank accounts. Apply online through the IRS website for immediate processing.

Keep in mind the application must be completed in one session, as it expires after 15 minutes of inactivity and cannot be saved for later.

6. Register for taxes

Tax registration requirements vary by state and business activities. Most landscaping businesses need:

• Sales tax registration: Required when selling products or taxable services
• Payroll tax registration: Mandatory when hiring employees
• Professional tax advice: Ask a tax advisor to review your registrations so you meet local requirements

7. Establish a business bank account

A business bank account separates personal and business finances, simplifying tax preparation and financial reporting.

Account opening requirements:

• EIN or SSN: Federal tax ID or social security number for sole proprietors
• Business registration documents: Legal formation paperwork
• Initial deposit: Amount varies by bank and account type

Recommended banking services: Business checking account and business credit card for complete financial management.

8. Determine your services

Determining your services involves analyzing local competition and aligning offerings with your skills and market demand.

Two primary service categories:

• Landscaping services: Design, installation, and hardscaping projects
• Lawn care services: Ongoing maintenance, mowing, and seasonal treatments

Landscaping could include projects such as patio and fence installation (which may need a construction license), sod installation, or creating flower beds. Services are wide-ranging, so you can specialize in one or two specific services, depending on whether you prefer residential or commercial clients.

Lawn care company recurring maintenance services offer a diverse range of projects. These could include some of the following:

• lawn mowing
• planting and plant care
• weeding
• applying fertilizer or pesticides
• seeding
• trimming
• lawn aeration

When deciding on your services, consider your target market and their likely needs. To reduce your startup costs, you could consider offering a limited range of services until you have become more experienced and established.

9. Determine what equipment you need

Equipment planning matches your tool purchases to your specific service offerings, minimizing startup costs while ensuring service quality.

Essential landscaping equipment:

• lawnmower
• hoe
• shears
• rake
• trimmer
• edger
• shovel
• leaf blower
• fertilizing equipment
• safety equipment, for example, ear protection
• gardening gloves

If your startup fund is small, consider renting some of the more expensive items before you invest in buying them. This will give you time to explore exactly what you need and your favorite brands.

Another important consideration is the vehicle you use. Common types of vehicles for landscaping businesses are pickup trucks, vans, and utility trailers. One of these is essential for your business. You will have to choose whether to rent or buy your vehicle. Your vehicle is also an advertising opportunity. You can put signage with your company branding and contact details on the vehicle.

10. Establish your target market

Target market identification determines your ideal clients and shapes your marketing, pricing, and service strategies. Landscaping businesses typically serve residential homeowners, commercial properties, or both.

Commercial work often involves working with fewer clients in large spaces. You can charge more, and they have a budget. But it can be difficult for a new landscaping business to break into commercial work unless you have good industry contacts. You are likely to need to hire employees.

Residential work may offer a better initial entry point and opportunities for custom work. You'll need more customers, but you can offer specialized services to make yours a more premium service.

Who you choose to work with will depend on your interests, your capabilities, and your desired margins.

Understanding what your competitors offer can also help you define your target market. By differentiating your service and niching, you'll be better able to narrow down your preferred clientele. This will help you stand out from your competitors, which will help with marketing.

11. Set your prices

Pricing strategy determines your revenue potential and competitive positioning. Research local competitor rates before selecting your pricing method.

There are three main ways to price your services:

• by project
• hourly rate
• per square foot

When setting your prices, you'll need to factor in a range of considerations. These include your overhead costs (insurance, equipment), direct costs (mulch, fertilizer), and job-specific features such as property size, location, and condition.

Be prepared to offer an initial estimate for a client, followed by a final invoice upon completion. Consider invoicing software if you plan to have an automated system and want to accept credit card payments online.

12. Build your brand

Business branding helps people recognize your landscaping business and choose you over competitors.

Brand development activities:

• Use your business name consistently across your logo, website, and all marketing materials.
• Define your unique selling proposition (USP). How will you stand out from your competitors?
• Get a logo designed.
• Create your brand guide. Include your colors, fonts, tone, values, and mission statement.
• Get a website and have it professionally designed.

13. Understand insurance requirements

Business insurance protects your landscaping company from financial losses due to accidents, property damage, and liability claims. The right insurance can help your business recover from a lawsuit or equipment theft.

Each state has different insurance requirements. Find a reputable licensed agent to help you assess your risks and needs. Shop around to find one that suits you.

These are some common types of insurance:

• General liability insurance: Covers financial loss from property damage, bodily injury, and defending lawsuits.
• Workers’ compensation: If you have employees, this is required in most states and provides support to workers injured while working.
• Commercial auto insurance: Provides protection for your work vehicles.
• Contractor's tools and equipment insurance: Provides protection to repair or replace damaged tools or equipment.
• Equipment breakdown insurance: This provides cover to repair or replace equipment that is broken down or damaged.
• Business owner's insurance: This is an insurance plan that covers a combination of insurance needs for business owners. These plans vary but can usually be tailored.

14. Market your small business

Marketing your landscaping business involves promoting your services to attract and keep customers. Many effective marketing strategies require minimal financial investment while delivering strong results.

Here are a few common, cost-effective ways to market a small business:

• Business cards: Give them to clients and people thinking about your services.
• Referrals: Ask clients or people you know for referrals. Word of mouth matters a lot.
• Testimonials and reviews: Ask past clients for a testimonial and add it to your website and social media.
• Establish a Google Business Profile: It's free and easy to establish. You can ask customers to rate your services.
• Social media: Choose one or two of your favorite platforms. Create a business page on Facebook. You can showcase examples of your work.
• Advertising: You can do this in local publications and websites.

Manage your landscaping business finances with confidence

Launching your business is just the beginning. To build a profitable company, you need a clear view of your finances. When you track job profitability and cash flow, you can make more confident decisions as you grow.

Make your business finances easier from day one with Xero. Track expenses, send professional invoices, and see your financial performance in real time. Spend less time on paperwork and more time building a business you love. Get one month free.

FAQs on starting a landscaping business

Here are answers to a few common questions about starting a landscaping business.

How much do you need to start a landscaping business?

Startup costs can range from a few thousand dollars to over $15,000, depending on your business model and whether you buy or rent equipment. Key expenses include tools, a vehicle, insurance, and business licenses.

Do I need an LLC for a landscaping business?

While not always required, forming a limited liability company (LLC) is highly recommended. It protects your personal assets from business debts and lawsuits, which is a crucial safeguard in a physically demanding industry.

Is it worth starting a landscaping business?

Yes, a landscaping business can be very rewarding. It offers the chance to be your own boss, work outdoors, and build a profitable company. Success depends on hard work, excellent customer service, and smart financial management.

What's the most profitable type of landscaping service?

Profitability varies by location and market, but specialized services like hardscaping, landscape design, and comprehensive commercial maintenance contracts often yield the highest profit margins due to the skill and equipment required.