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Starting Up a Pet-sitting Company

June 18, 2006

Q-My friend and I are retiring and are going to start a pet-sitting business. We have read literature on this and have talked to other people that do this for a living. We would like to know if you can give us information on how we go about setting up this business. Is there a Web site that gives information on whether we need to be bonded, what type of insurance we will need and if we need to incorporate and where do we go to do this?

Thank you for asking such important questions before you actually start your business. The more information you have the higher the probability that you will succeed.

The basic steps for setting up your business are to decide what type of organization will serve you best and to get the government licenses that you will need.

Most businesses begin their companies as either a subchapter S corporation or a limited liability company (LLC). In both of these cases you get liability protection without having to pay corporate taxes.

Most of the businesses I have seen start up lately have been LLCs. I would recommend that you hire a lawyer to handle the paperwork. Legal fees for setting up an LLC range from about $500 to $1,000. If you can find a lawyer who specializes in your type of business, do so. He or she will be able to offer you all kinds of valuable advice as your business grows.

In terms of insurance, a great resource for this information about your pet-sitting venture is at http://www.petsitterinsurance.com/faq.asp. You are definitely going to need liability insurance, commercial auto insurance and workers’ comp insurance if you have employees. Since you will have access to people’s homes, bonding is great idea because it will make people more comfortable with your presence there while they are gone.

Your best bet for types of insurance, however, is to ask for recommendations from an insurance agent you trust. After you have the agent’s input, call other pet-sitting businesses in other cities and find out what they have in terms of policy coverage.

Most governments are going to require a business license for you to operate and you are going to have your business name registered in the state where you are operating. Most government Web sites are now very easy to use so you should be able to find the information you need on-line.

There is a wonderful web site (http://www.uwlax.edu/sbdc/Timeline.htm) that provides a timetable and checklist for things you need to accomplish before you start your business.

Good luck on your new pet-sitting venture and thanks for asking such relevant questions.