Should I Start an LLC for My Pet Cemetery?

Starting a limited liability company (LLC) for your pet cemetery 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 pet cemetery business, lawsuits can arise from things like property damage caused by a fire during the cremation of a client’s pet or injuries suffered by clients on business premises.

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

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

Do I Need an LLC for a Pet Cemetery?

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 Pet Cemetery

By starting an LLC for your pet cemetery, 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.

Pet cemeteries will benefit from liability protection because of the risk of being sued for personal injuries and property damage.

Example 1: Your pet cemetery has been contracted to handle the funeral of a family dog. In the course of the ceremony, two gravediggers mistakenly damage the casket, and your client's children are traumatized. Your business may be liable for compensation if the client sues you, but the limited liability will keep your personal assets safe from legal consequences.

Example 2: While cremating the remains of a client's hamster, an electrical fault triggers a fire. In the ensuing mayhem and bid to put out the fire, the remains are lost, and your client sues the business. As a result of the limited liability offered by your business’s LLC structure, your personal assets will remain safe regardless of whether your business is required to compensate the claimant.

Example 3: On a trip to visit their class pet who was buried at your pet cemetery, a group of elementary school children slip and fall within your business premises. Several of them sustain dislocations and other minor fractures. The school board sues you for neglecting to properly maintain the paths, leading to the accident. In the ensuing lawsuit, you will be protected from being held personally liable to pay any damages.

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 Pet Cemetery

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 pet cemetery 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

Pet cemeteries 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 professional 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 need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

Pet cemetery businesses need insurance because of the fact that they have to deal with the remains of people’s beloved pets. Any negligence or damage could cause emotional trauma, hence the need for proper insurance coverage.

Common Situations Business Insurance May Cover for a Pet Cemetery Business

Example 1: While walking from the parking lot to the cemetery, a visitor trips over some broken pavement, breaks an arm, and decides to sue for damages. General liability insurance would pay for your legal defense and any required settlement.

Example 2: During a tour of your cemetery, a potential customer slips on some ice, breaks his tailbone, and demands your business pay for his medical treatment. General liability insurance would cover his medical expenses.

Example 3: As an employee transports supplies from the toolshed to the cemetery, he loses control of the handcart, and it hits a visitor’s luxury sedan. General liability insurance would pay for the visitor’s vehicle repair costs.

Other Types of Coverage Pet Cemetery 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 pet cemeteries should obtain:

Commercial Property Insurance

You made a major investment in your real estate, equipment, and supplies. 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. This includes structural damage to your buildings and grounds as well as the business materials stored there.

Commercial Auto Insurance

Any car or truck you use primarily for your pet cemetery 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 equipment or supplies you carry in your vehicle.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. 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 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 property insurance.

Read our Pet Cemetery Business Insurance article for more info.

To start a pet cemetery business, you will need to secure land, licenses (permits and local ordinances), and staff to run the cemetery. The costs of these are mostly subject to the area where you live. Other operating costs include staff salaries, supplies, and marketing costs.

Visit our How to Start a Pet Cemetery guide to learn more about the costs of starting and maintaining this business.

Licensing fees, payroll, supplies, marketing, and additional land purchases are the main ongoing expenses.

Learn more about running a pet cemetery.

A pet cemetery charges for plots of land, funeral services, and possibly additional expenses like flowers and cremation.

Learn more about starting a pet cemetery.

A pet cemetery provides a place for pet owners to lay their pets to rest. The average net profit margin of a pet cemetery is less than 12%.

Learn more about starting a pet cemetery.