Free Guide To Starting An LLC For Pool Cleaning Business 2024
Reviewed by Kristina Knight, Journalist , BA
The article is checked by our editorial team, Which includes entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.
If you’re the owner, starting an LLC for your pool cleaning business could be a smart move. It could help to protect your business bank account and make your pool cleaning services appear more legitimate, among other benefits.
But what are the steps for turning a pool cleaning business into an LLC? How much does it cost? And what should pool cleaning companies know before making the change to the LLC business structure?
We created this guide to answer those questions and to provide more details about turning a business in the pool service industry into an LLC. Keep reading to learn more.
What Is An LLC For Pool Cleaning Business?
The first thing we should cover is what an LLC is. Essentially, it’s a way to hold your business, just like a sole proprietorship or corporation. If you have your own pool cleaning business, you can choose which type of business structure is right for you based on the pros and cons of each.
Whether you plan to start a pool cleaning business but haven’t done so yet, or you’ve been running a successful pool cleaning business for some time now, it’s worth reevaluating whether an LLC is right for you just like you reevaluate the pool equipment, pool service software, and pool chemicals you use to clean pools.
The Benefits And Drawbacks Of Using An LLC For Pool Cleaning Business
Now that you know what an LLC is, it’s time to consider why small business owners may want to use it. Here are the pros and cons of using an LLC for your pool cleaning business.
Benefits
The biggest advantage of an LLC is the personal asset protection it offers. Your personal assets will be protected from seizure if your company goes bankrupt since they will be separated from your business assets.
Your pool cleaning business could also receive tax benefits on pool cleaning equipment, supplies, and other expenses incurred through the pool service business and pool maintenance services. But this can vary some based on the state you’re located in, your pool cleaning business plan, and the type of business expenses you incur while servicing pools and working with pool technicians.
Drawbacks
There are also a few potential drawbacks to using an LLC to offer pool maintenance and complete minor repairs on a customer’s pool. For example, you will have to pay a filing fee to complete the LLC formation process and get any relevant contractor’s license for starting a pool cleaning business.
Additionally, your pool cleaning businesses may have less flexibility after turning into an LLC. But that can also vary based on the state where your pool cleaning company is located.
What Are The Tax Benefits For An LLC Pool Cleaning Business?
Pool service businesses that are LLCs can save from pass-through taxation. This can reduce your tax requirements by as much as 20%. Your state may have special tax incentives for LLCs in the pool business and other business owners as well.
When you save on taxes like this, you have more money left over to pay for general liability insurance, pay off your business credit card, and start advertising to your target market so that you can begin finding your first few customers with commercial pools and the high-value contracts they tend to offer you as a pool service business owner.
How To Form An LLC For A Pool Cleaning Business? Steps By Steps
If you think forming an LLC is right for your pool cleaning service, then the next step is following your state’s process for turning your pool service businesses into LLCs.
The exact process that your pool service business follows here will depend on where its pool cleaners are located, as every state has its own requirements. But, keeping that in mind, here’s a general overview of what getting a pool cleaning business starting with an LLC looks like.
Research your state’s legal business entity forms
First, look up the local requirements for turning a company into an LLC. If you have your own business, this will be the first step toward forming a limited liability structure.
You can usually find the documents that your pool cleaning business needs to fill out on the secretary of state’s websites. You can Google something like “form an LLC in [your state]” and the forms should pop up. Figuring out which forms your pool service business needs to fill out in order to start offering pool maintenance as an LLC is the first step in the process.
Fill out the required forms for your new business
Once you know which forms your pool cleaning businesses need to fill out, you’re ready to go ahead and fill those forms out. You may need to provide some information from your business plan and will definitely need to have a business name ready to go.
At this point, part of your startup costs will include filing fees. These vary from state to state, but you should keep them in mind as you think about fees for things like a business license, business insurance, business property rent, and supplies for cleaning pools.
Respond to your state’s requests for edits
At this point, you need to wait for the secretary of state to get back to you. When they do, they can either say that your pool cleaning business meets all of the requirements and has officially become an LLC. Or they might ask you to fix some problems with your LLC application and business plan.
You may need to fix a few details about your pool cleaning business to finalize the process, such as getting pool cleaning business insurance or applying for a business license that allows you to start a pool cleaners company for residential pool owners and commercial pools.
Run your LLC
Once you fix any issues, you’ll officially be finished with starting a pool cleaning LLC. Now all that’s left to do is run your swimming pool cleaning business and continue offering excellent cleaning services on clients’ swimming pools.
One thing to keep in mind while you hire employees and service your target market as a swimming pool cleaner is that your LLC may have ongoing fees. For example, some states have annual report fees. These should be factored into your startup costs, alongside fuel costs and the other items your pool cleaning business requires, as your pool cleaning business grows.
Top 2 LLC Services
You can typically set up an LLC for local pool cleaners on your own. But it can be helpful to go through a professional LLC formation service provider as well. If you’d like some help as you start a pool cleaning LLC that offers pool cleaning services, here are two of the top-rated options.
| ZenBusiness | Northwest Registered Agent | |
| Award | Best Overall | Most Affordable |
| Price | $0 – $299 + state filing fees | $0 – $225 + state filing fees |
| Rating | 4.8/5 | 4.7/5 |
| Detail | Read Review | Read Review |
| Link |
ZenBusiness
ZenBusiness can guide you through the full process of forming an LLC for your seasonal business. They also provide great customer service outside of standard business hours and can provide ongoing support with things like setting up an employer identification number or tax factors to consider before hiring a new pool technician or setting up a business stand.
Northwest Registered Agent
Northwest is another excellent LLC formation business that can help you start a pool cleaning LLC. The company is very similar to ZenBusiness, but is slightly more affordable, which will be good for your business bank account. However, Northwest doesn’t quite offer as many services to help you expand your own pool cleaning business.
Read More: Best Registered Agent Services 2024
Tips To Maximize Benefits For An LLC For Pool Cleaning Business
Pool owners who want to maximize the performance of their swimming pools invest in the best pool equipment. If you want to maximize the performance of your business, it could make sense to invest in an LLC creation service.
Companies like ZenBusiness and Northwest can help you identify the biggest factors to keep in mind while setting up an LLC for your specific business in your specific state. They can provide a level of personalized support that may help you save money on taxes and administrative costs while you continue offering pool cleaning services to the public.
Final Thoughts
Turning your pool cleaning business into an LLC may be just what you need to protect yourself from personal liability and save on taxes. You can either go through the formation process on your own, by following guides like this, or by hiring a professional service provider.
It can also be helpful to look up LLC formation guides for your specific state. Doing so can help you zero in on the most important factors to consider both before you decide on the LLC business structure type and what to think about after the formation process has been completed. Regardless of what you decide, we wish you all the best with your business moving forward.
Frequently Asked Questions (FAQs)
You can start a pool cleaning LLC by visiting your secretary of state’s website, filling out the forms they request, and paying the filing fee that your state charges for this paperwork. You can go through that process on your own or you can hire a professional LLC formation provider to give you some support.
The cost will depend on the state that you’re located in, as ever state sets its own filing fees. It’s also important to note that some states have ongoing annual fees that you need to pay in order to stay an LLC, but not all of them.
Yes, it can often be a smart move. Forming an LLC will limit your personal liability in the event that something goes wrong with your company’s finances while also making your service appear more legitimate to the public.
The biggest potential downside is the amount of money that you need to spend to form and maintain an LLC in your state. In some states, these amounts will be negligible. But in others, running an LLC can cost hundreds of dollars per year. You can research your state’s fees to see if they work for your budget.
ABOUT THE AUTHOR
ABOUT THE REVIEWER
+ 4 sources
Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
-
U.S. Small Business Administration. Choose a business structure. Choose a business structure. Published 2022. Accessed June 8, 2023. https://www.sba.gov/business-guide/launch-your-business/choose-business-structure
-
IRS. Sole Proprietorships | Internal Revenue Service. Irs.gov. Published 2020. Accessed June 8, 2023. https://www.irs.gov/businesses/small-businesses-self-employed/sole-proprietorships
-
IRS. Limited Liability Company LLC | Internal Revenue Service. Irs.gov. Published 2019. Accessed June 8, 2023. https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc
-
Apply for licenses and permits. Apply for licenses and permits. Published 2020. Accessed June 8, 2023. https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits