Should I Start an LLC for My Dog Walking Business?

Starting a limited liability company (LLC) for your dog walking business can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a dog walking business, lawsuits can arise from things like medical damage claims (e.g., a customer’s dog getting injured due to employee negligence while walking).

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your dog walking business seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

A dog on a leash looking up at their walker

Do I Need an LLC for a Dog Walking Business?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should start an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Dog Walking Business

By starting an LLC for your dog walking business, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Dog walking businesses will benefit from liability protection because pet services face a variety of risks associated with visiting clients’ homes and interacting with their pets.

Example 1: One of the employees of your dog walking business is walking several clients' dogs. While he is checking his phone, a dog escapes from his leash and runs into the road, where it is hit by a car. This prompts the customer to sue your business for negligence on the basis that it failed to satisfy the duty of care it owed. In this situation, your personal assets would be protected from any liability imposed on your business to pay compensation.

Example 2: An employee of your dog walking business chased a dog that had escaped its leash but, in doing so, ran into a nearby bystander, causing them to fall over and break their collarbone. As a result, the injured party brought a lawsuit for bodily harm against your business, alleging it is to blame. In the ensuing proceedings, you are personally protected from being held responsible for paying the business’s liabilities.

Example 3: Your dog walking business suffers a devastating data breach in which the confidential details of numerous clients were released after an employee had their phone stolen. One of the affected clients sues your business for this data breach, alleging that your business’s negligence led to this occurrence. Limited liability would ensure that any compensation is limited to the assets belonging to the business.

Example 4: While an employee is walking a client’s dog, the dog escapes the leash and bites a pedestrian walking down the sidewalk. The pedestrian sues your business and the dog’s owner.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Dog Walking Business

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a dog walking business owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Dog walking businesses rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a dependable LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All businesses, including LLCs, require insurance in order to protect their assets. Dog walking businesses have a number of valuable assets that they need to protect.

In a similar way to how insurance protects a business’s assets, limited liability provides a safeguard for the personal assets of an LLC’s owner.

Common Situations Business Insurance May Cover for a Dog Walking Business

Example 1: During a walk, a dog unexpectedly jerks the leash out of your hand. It runs down the street and bites a pedestrian, resulting in a severe infection. General liability insurance will likely cover the cost of treating the injury.

Example 2: Another local dog walker files a lawsuit against you claiming that your company’s name is too close to theirs. General liability insurance will likely cover the cost of the legal advice you need to either settle or argue the claim.

Example 3: While you’re out on a walk, a dog veers off into a nearby garden. It tramples the expensive, exotic plants the homeowner ordered from overseas. General liability insurance will likely help you replace the bulbs and any other resulting property damage that may have occurred.

Other Types of Coverage Dog Walking Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all dog walking businesses should obtain.

Commercial Auto Insurance

If you’re using a vehicle to get to clients or to transport their dogs, you may need commercial auto insurance to cover any damage that may ensue from an accident. A personal policy may not cover the cost of dog injuries or property damage if the insurer becomes aware that the vehicle was used for business activities at the time of the crash.

Home-Based Insurance

Many dog walkers work out of their homes without realizing that accidents or damages that occur in their business space may not be covered by homeowner’s or renter’s insurance. So, if there’s a flood in your home office that ruins your work and destroys the nearby wiring system, you’ll need home-based insurance to cover the damages.

Commercial Umbrella Insurance

Dog walking is an inherently risky business, one that can potentially result in physical injury and extensive property damage. And, while your dog walks will usually go without a hitch, it only takes one broken bone to make an extremely expensive mistake. Umbrella insurance is a way to continue receiving financial compensation for a claim even after the limits of a general liability policy hit their limits.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance and possibly commercial auto insurance.

Read our Business Insurance article for more info.

You should expect as much as $10,000 to get your dog walking business started. Only a few items are needed to get started, including leashes, dog treats, chew toys, transporting crates, insurance, and a website.

Visit our How to Start a Dog Walking Business guide to learn more about the costs of starting and maintaining this business.

The bulk of your ongoing expenses will be related to costs associated with vehicle fuel, maintenance, and insurance.

Learn more about running a dog walking business.

Profit is made by charging clients varying rates for you to walk their dog, in addition to other potential services you may choose to offer such as grooming or pet sitting.

Learn more about starting a dog walking business.

Dog walking businesses provide the service of walking dogs for a small price. The average annual profit of a dog walking business is about $83,000.

Learn more about starting a dog walking business.