How to start a tree service business

Take the jobs your gear and skill cover. A removal over a house is a different job from one in an open yard, and the price and the risk should show it.

Some states and cities license tree work, and some require a certified arborist to sign off on certain jobs or permits. Many cities require a permit to remove some trees. Treatments that use pesticides need state applicator certification. The International Society of Arboriculture runs the ISA Certified Arborist credential, which many customers and cities recognize. Ask your city about tree permits before you quote a removal.

OSHA's tree care pages cover the main hazards, including falls, being struck by falling limbs, and electrocution, and OSHA publishes a guide on electricity and tree care work. The rule of thumb every tree crew lives by: if a tree is near a power line, call the utility and do not work it unless you are trained and qualified for line clearance. Wear the protective gear for chainsaw work and plan every cut and drop zone before it starts.

The SBA lists the launch steps in this order: pick a location, choose a structure, choose a name, register, get federal and state tax ID numbers, apply for licenses and permits, open a business bank account, and get insurance. For a tree service business working out of a truck, the location is usually your home address and the area you will serve.

• Structure. A sole proprietorship is the simplest. An LLC keeps the business separate on paper. Ask an accountant which fits your state and your plans.
• Tax ID. The IRS gives out an employer identification number (EIN) online, and says you never have to pay a fee for one. Websites that charge for an EIN are not the IRS.
• Self-employment tax. The IRS lists the self-employment tax rate as 15.3%: 12.4% for Social Security and 2.9% for Medicare. Income tax comes on top, so set money aside from every job.
• Bank account. Open it before the first payment lands, so every dollar in and out is easy to find at tax time.

Your name goes on the truck, the invoices, the Google profile and the yard signs, so pick it once. The free tree service name generator gives 36 ideas for your town and style, each with a domain idea, and lists the checks to run before you commit: your state's business name search, a federal trademark search and the domain itself.

The SBA describes general liability insurance as cover for financial loss from bodily injury, property damage, medical expenses and defending lawsuits. It says businesses with employees are required to carry workers' compensation, unemployment and disability insurance, and some states ask for more.

Tree work is one of the costlier trades to insure. Ask for general liability that covers tree removal, commercial auto for trucks and the chipper, equipment cover, and workers' compensation as soon as anyone works for you. Homeowners will ask for a certificate, and they should.

No total here on purpose. What you spend depends on what you already own, new or used, and how much work you plan to take on. Price your own list with a local supplier, then put the numbers in the startup cost table of the free business plan template, which adds them up for you.

• Chainsaws in a range of sizes, with chaps, helmet, eye and hearing protection
• Climbing gear: harness, ropes, lanyards, and rigging blocks for lowering
• A chipper and a truck or dump trailer for brush and wood
• A stump grinder, often rented per job at the start
• Ladders, pole saws and hand saws

The chipper and truck are the largest costs after insurance. Renting a lift or grinder per job keeps startup costs down until the work is steady.

Price each tree from its height, spread, access, what it could hit, and the cleanup: chipping, hauling and dump fees. The free tree removal cost calculator shows how those factors add up, and our guide to pricing tree work works through examples. Price stump grinding and haul-away as their own lines so the customer can choose.

• Storm response. After a storm, answer every call. Koira answers on your number while you are in a tree.
• The neighbors. Trees cross property lines, and neighbors watch the work. Koira mails nearby homes after the job.
• Property managers and HOAs. Regular pruning contracts.
• Google and reviews. Photos of clean yards after a removal win the next job.

Send an estimate with options (prune, remove, remove and grind) and take a deposit on large removals. Invoice when the yard is clean and take payment at the door.

Your first hire is a ground worker trained on chipper safety and rigging. Add a lift or grinder once you rent one often enough that owning costs less. Read how tree services run on Koira.