Do I Need an LLC for My General Gardener Business?

Starting a limited liability company (LLC) for your general gardener 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 general gardener business, lawsuits can arise from things like an employee accidentally damaging a customer’s property (e.g., destroying a sprinkler system while mowing a lawn, etc.).

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

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

Should I Start an LLC for My General Gardener 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 General Gardener Business

By starting an LLC for your general gardener 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.

General gardener businesses will benefit from liability protection because of the risk of being sued for personal injuries, libel, property damage, and more.

Example 1: You are mowing a lawn, and your lawnmower mistakenly hits a client's internet cable line. If the client insists on legal action, your LLC status will protect your personal assets from being affected and limit the lawsuit to your business assets alone.

Example 2: Your employee weeds a client's garden, and after the work, the client sees that the employee’s gardening tools destroyed some valuable plants. If the client sues, your business assets may be affected, but your personal assets will be safe from a lawsuit.

Example 3: A client hires you for soil treatment. Some new chemicals you used turned out to be too harsh. The client complains that you did not warn them about this and that the chemical affected their health. If the client sues for this, they will be suing your business and not you as an individual.

Example 4: While working for a client, an employee accidentally damages a prize rose bush in the garden. The client asks you to pay for the resulting replacement costs.

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 General Gardener 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 general gardener 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

General gardener 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 LLCs need insurance to protect them from unforeseen risks, even as limited liability protects the owner’s assets. This is because business insurance protects the assets of the business itself.

General gardener businesses need insurance to protect them from threats such as equipment damage and legal battles from unsatisfied clients and employees.

Common Situations Business Insurance May Cover for a General Gardener Business

Example 1: During a visit to your office, a customer slips on a wet lobby floor, breaks an arm, and decides to sue your business. General liability insurance would cover your legal fees and any required settlement.

Example 2: While rushing to a consultation with a commercial client, one of your gardeners accidentally runs into the client and knocks him to the floor. The client breaks an arm and demands your business pay for his medical care. General liability insurance would cover his medical treatment.

Example 3: A competitor claims your new logo infringes on her copyright. While you don’t see the similarities, you know you need to hire an attorney to protect your business. General liability insurance would pay for your legal defense and any required settlement.

Other Types of Coverage General Gardener 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 general gardeners should obtain:

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Commercial Property Insurance

You made a major investment in the specialized tools, office equipment, and gardening supplies needed to make your business a success. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property.

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business materials you carry in your vehicle.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

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 commercial auto insurance.

Read our Business Insurance article for more info.

You can start this business for a low cost with a lawnmower and some available gardening tools. You will also need to budget for transportation costs and equipment maintenance. Additionally, you will need to purchase commercial insurance for the business.

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

Ongoing expenses include equipment replacement and maintenance, transportation costs, and commercial insurance.

Learn more about running a general gardener business.

A general gardener business charges money for gardening services, including mowing, weeding, and planting.

Learn more about starting a general gardener business.

A general gardener business provides gardening services to residential and commercial clients. Among other things, a general gardener mows, weeds, plants flowers, and rakes leaves.

Your location, the number of hours you work, and the type of equipment you use will largely determine your profits.

Learn more about starting a general gardener business.