A tree service business can pay better than almost any other outdoor trade. A single removal can bring in $1,500 before lunch. It also has more ways to go wrong: expensive equipment, high insurance and work where one mistake lands on a roof. Here is how to start a tree trimming, tree cutting or tree removal business in the right order.
1. Decide what you will do first
Most new tree companies start with three jobs:
- Trimming and pruning of small and medium trees, the steady work
- Removals of trees you can safely climb or drop, the big tickets
- Stump grinding, which is easy to add and has high margins
Leave crane work, large hazardous removals over houses and utility line clearance for later. Those need more experience, more insurance and sometimes special certification. If you are in Florida or the Gulf Coast, add palm trimming. It is steady, fast and every street has palms.
2. Get the skills and the certification
Customers and insurers both care about training. Many owners worked for another tree company for a few seasons before starting. An ISA Certified Arborist credential is not required in most places, but it helps you win bigger jobs, write better proposals and answer the question homeowners ask most: "Should this tree come down?" Learn the ANSI Z133 safety standard and the ANSI A300 pruning standard, even if nobody checks.
3. Handle the paperwork
- Register the business. An LLC is common and inexpensive in most states
- Get an EIN from the IRS, free, online
- Check licensing. Some states, counties and cities require a tree service or tree trimmer license. Many cities also require a permit before certain trees are removed, so learn the rules where you work
- Get insurance before your first job (more on this below)
- Open a business bank account from day one
4. Insurance is not optional
Tree work is one of the highest risk trades in the country, and insurers price it that way. Plan on general liability of at least $1 million per occurrence. Expect to pay several thousand dollars a year for it, often $3,000 to $8,000 for a small company. Workers' compensation for tree workers is one of the most expensive classes there is; budget it as a real percentage of payroll before you hire. Commercial auto for the truck and inland marine coverage for equipment round it out. Read our guide on tree service insurance and licenses before you buy.
5. Equipment: what you need to start
You can start lean and rent the big pieces:
- Two or three professional chainsaws, one small top-handle saw for climbing ($500 to $1,500 each)
- Climbing gear: saddle, ropes, lanyards, carabiners, helmet, chaps ($1,500 to $3,000)
- Rigging: blocks, slings and lowering rope ($1,000 to $2,500)
- A dump truck or a pickup with a dump trailer
- A chipper: rent at $250 to $400 a day at first, buy used for $15,000 to $30,000 when you are booked
- A stump grinder: rent, or buy a small walk-behind for $5,000 to $10,000
A bucket truck is a $60,000 to $150,000 decision. Most new owners climb and rent before they buy one.
6. Price your first jobs
New owners underprice tree work more than any trade we see. Know your cost per crew hour (labor, insurance, fuel, equipment, dump fees) and price by how long the job really takes, including cleanup. A two to three person crew often needs to bill $1,500 to $3,000 a day to stay healthy. Our guides on how much to charge for tree removal and tree trimming cost walk through it.
7. Get the phone to ring
- A Google Business Profile with photos of your work and your service area
- A website with your services, a ballpark price and your proof of insurance on every page
- Door hangers on streets with big, overgrown trees, the week before storm season
- Every call answered. After a storm, the first company that picks up gets the job
Our guide on how to get tree service customers goes deeper.
How long until it pays
Many owner operators who start with trimming, smaller removals and stump grinding are booked two to three weeks out by their second season, as long as they look professional and answer quickly. Your first storm season will show you how many calls you can handle, and how many you miss.
Frequently asked questions
How much does it cost to start a tree service business?
Starting lean with saws, climbing gear, a truck and rented chippers and grinders, many owners start for $15,000 to $30,000 including the first year of insurance. Buying a chipper, a grinder and a bucket truck can push it past $150,000.
Do I need a license to start a tree service business?
It depends on your state, county and city. Some require a tree service or tree trimmer license, and many require permits for removals. Check with your state licensing board and your city before your first job.
Is a tree service business profitable?
It can be very profitable because jobs are large and stump grinding and haul-away add margin. The costs that sink new owners are insurance, equipment payments and underpriced bids.