Congrats! You are taking the first steps towards starting your own business, which can be overwhelming to begin. We are excited to help answer some basic questions in the start up for your pet care business!
Why Do I Register My Business?
The short answer is you register your business to be recognized as a legal entity. Now this can vary from state to state or by your business services, but many of these steps are just good business common sense to follow. You will want to be registered with federal, and state agencies each for a different reason. We will go into those below:
Federal Registration: For your pet care services, you simply need to file with the federal government to register for a federal tax ID. This is often called your Employer Identification Number or (EIN). This allows you to do the following things necessary for your business:
Open a bank account
Pay employees
Pay state and federal taxes
Apply for business licenses or permits
Establish accounts with business direct companies
You will specifically need an EIN to operate as the following types of business entities; all corporations, all Limited Liability Companies (LLC) with more than one member, and any business that hires employees including a sole proprietorship.
State Registration: Remember that you will need to register as a business within any state that you are conducting active business. That goes above and beyond having a physical location – it includes where your business’ revenue is coming from.Most states require your business to register with either the Secretary of State’s office, a Business Bureau, or a Business Agency. We have linked a helpful tool, to find your state’s website and requirements in just one click.
Registration with a state requires the following information before you can get started:
Business Name
Business Location / Mailing Address
Ownership, Management, or Directors Structure
Register Agent Information
Number and Value of Shares (for Corporations)
How Do I Determine The Right Business Structure?
Choosing the right structure for your business is actually really important! This changes how you do things on a day to day operations level, it affects how to file your taxes, and your level of personal risk. So let’s walk you through what we find are the most common structures for your pet business.
Sole Proprietorship
This will be the most common type of business for many pet service based businesses. If you do not not register as any other type of business, but perform business activities, this is the assumption and structure assigned to you. Here, you have complete control over your business. This can be a good choice for a low risk service or for those wanting to test if their business will be successful before accruing additional start up costs.
However, there are risks with sole proprietorship. Your business assets and liabilities are not separated from your personal assets. If you are held liable for a business claim, your personal assets can be at risk for repayment of that claim.
Documents Needed: None
Partnership
Many of our dog walkers and pet sitters start their business as a partnership. It’s a great way to dive into business with someone who shares your same passions! A partnership is one of the more simple structures for two or more people to own a business together.
Now comes the choice between creating a Limited Partnership (LP) and Limited Liability Partnership (LLP). Here again, we talk specifically about risk and liability.
In an LP, one general partner can be designated with “unlimited liability”. Other partners within this structure have limited liability – and thus have a limited control over the company. This will be outlined and documented in a partnership agreement. Profits are paid through personal tax returns, except the general partner who must also pay self-employment taxes.
In a LLP, all partners are given limited liability coverage. This will protect each partner from debts against the partnership, meaning you won’t be responsible for the actions of your other partners.
Documents Needed: Certificate of Limited Partnership and Limited Partnership Agreement OR Certificate of Limited Liability Partnership and Limited Liability Partnership Agreement.
Limited Liability Company
This is many people’s ideal choice for structuring their new business. A registered LLC provides you protection for your personal assets – separating you from your business. This means your vehicle, home, and savings accounts won’t be at risk in the event of your business facing a lawsuit or bankruptcy; because they are seen as two separate entities.
Profits and losses can be handled through your personal income without facing corporate taxes. However, members of an LLC are considered self-employed and must pay taxes towards Medicare and Social Security.
States vary on rules for the life of an LLC or how to handle a member of an LLC leaving. Check with your local state to stay up to date on these rules and regulations.
Documents Needed: Articles of Organization and Operating Agreement
Corporation
Lastly, a corporation is a legal entity that stands separate from its owners. A corporation provides the strongest legal protection to its owners from personal liability because it can make a profit, be taxed, and be held legally liable on it’s own.
There is a cost to this level of protection. There are greater costs to form this type of business. It also requires more records, operational procedures, and reporting to maintain a legal corporation. Corporations also are required to pay income tax on their profits.
There are many different types of corporations, which we won’t get into today. But if you are interested in becoming a larger corporation, continue to do your research.
Documents Needed: Articles of Incorporation or Bylaws or Resolutions
How to Register a Business Name
No matter which business structure you are going to start with, you will need to think of a creative, original name. The name you want may already exist or be taken by another company, so keep an open mind when you are selecting a name. You’ll want to make sure that your business name is memorable and relevant to the services you will be providing. Perhaps you’re starting a pet sitting business—consider using the words “pet sitting” in your business name.
The SBA states that there are four different ways to register your business name. Each way serves a different purpose, and is not required by each location or business structure. They are as listed:
Entity Name: protects you at a state level
Trademark: protects you at a federal level
Domain Name: protects your business website address
DBA: doesn’t give legal protection, but may be legally required
You may be thinking, “How can I register a business name for free?” Unfortunately, in order for your business name to be recognized as officially registered, you will need to pay a small fee. This fee will depend on the state where you live. For example, in Utah, it costs $22 to register a business name.
Circle Back on Liability One More Time
Now that you know the requirements for registering a business with federal and state requirements and have narrowed down which business structure will be right for you, let’s talk one more time about liability – the is the most important part of getting started in business.
The right business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits could shut you down, if you are not protected with the right insurance for your pet care services.
You heard us mention liability more than once up above as we covered the business structure types. So why doesn’t that structure provide your business that protection? Depending on how your business is set up – your personal assets may or may not be at risk. But without insurance, your business assets are always at risk.
Purchasing the right pet care insurance will provide your business general liability insurance: coverage for bodily injury, property damage, medical expenses, libel, and slander. This type of insurance will help in defending lawsuits and settlements on bonds or judgements.
And just as important, professional liability insurance. This provides coverage against financial loss as a result of errors and omissions in your work. If your business provides services to customers, even furry ones, then this type of insurance is a critical piece for your business.
To learn more about our specific policy and our additional coverages, take a look at the Pet Care Insurance website. We are here to answer your questions, so always reach out if you need additional help or clarification!
Free e-book
Pet Sitter & Dog Walker Business Guide
Annual Pet Insurance Policy
This policy is for professionals who work in the pet care industry.
No purchase is necessary to enter or win the contest. Purchasing will not increase your chances of winning the contest.
2) Eligibility:
The contest is open to legal United States residents who are 18 years of age or older at the time of entry. The contest is only open to those who follow the instructions and enter their name and email address on the website landing page
https://www.petcareins.com/groomer-to-groomer Employees of Pet Care Insurance, their respective affiliates, contractors, subsidiaries, advertising and promotion agencies and partners, suppliers and their immediate family members and/or those living in the same household of each are not eligible to participate in the contest. The contest is subject to all applicable federal, state and local laws and regulations. Void where prohibited.
3) Agreement To Rules:
By participating, you agree to be fully unconditionally bound by these rules, and you represent and warrant that you meet the eligibility requirements set forth herein. In addition, you agree to accept the decisions of Pet Care Insurance (PCI), as final and binding as it relates to the content. The contest is subject to all applicable federal, state and local laws.
4) Contest Period:
Entries will be accepted online starting on or about November 23, 2018 and ending 10:30 AM MST on December 3, 2018. All online entries must be received by December 3, 2018 10:30 AM MST. There will be one winner.
5) How To Enter:
To enter the contest, one must enter their first name, last name, and email address into the contact form located exclusively on https://www.petcareins.com/groomer-to-groomer. You may enter only once. You may not enter more times than indicated by using multiple email addresses, identities, or devices in an attempt to circumvent the rules. If you use fraudulent methods or otherwise attempt to circumvent the rules, your submission may be removed from eligibility at the sole discretion of Pet Care Insurance (PCI). All disputes will be resolved at the sole discretion of Pet Care Insurance (PCI). In the event the entry collection mechanism suffers a technical failure, Sponsor may elect to randomly select another email subscriber to designate the winner of this giveaway. [Note: If you would like to remove yourself from consideration for this giveaway, please email Pet Care Insurance (PCI) at marketing1@petcareins.com with the subject line “Opt-Out – Attn: Ryan Muir”]
6) Prize:
here will be 1 (one) winner who will receive 1 (one) Amazon Gift Card. The Approximate retail price of the Amazon Gift Card is = $100 USD. At the discretion of PCI, the gift card may be delivered either electronically or by means of free standard shipping to the United States.PCI reserves the right to substitute an item of equal or greater value if any items listed above are out of stock or otherwise unavailable. Actual/appraised value may differ at the time of prize award. The specifics of the prize shall be solely determined by the Sponsor. No cash or other prize substitution permitted except at Sponsor’s discretion. The prize is non-transferable. Any and all prize related expenses, including without limitation any and all federal, state, and/or local taxes shall be the sole responsibility of the winner. No substitution of a prize or transfer/assignment of a prize to others or request for the cash equivalent by winners is permitted. Acceptance of prize constitutes permission for PCI to use winner’s name, likeness, and entry for purposes of advertising and trade without further compensation, unless prohibited by law.
7) Odds:
The odds of winning depend on the number of eligible entries received. One entry per person/email address.
8) Winner Selection And Notification:
Winners of the contest will be selected based on content quality under the supervision of the Sponsor. Winner will be notified via message to the email address that they used or phone number they submitted to enter the contest within five (5) days following the winner selection. PCI shall have no liability for a winner’s failure to receive notices due to winners’ spam, junk e-mail or other security settings or for winners’ provision of incorrect or otherwise non-functioning contact information. If the selected winner cannot be contacted, is ineligible, fails to claim the prize within 15 days of the time award notification was sent, or fails to timely return a completed and executed declaration and releases as required, the prize may be forfeited and an alternate winner selected.
The receipt by winner of the prize offered in this contest is conditioned upon compliance with any and all federal and state laws and regulations. ANY VIOLATION OF THESE OFFICIAL RULES BY ANY WINNER (AT SPONSOR’S SOLE DISCRETION) WILL RESULT IN SUCH WINNER’S DISQUALIFICATION AS WINNER OF THE CONTEST AND ALL PRIVILEGES AS WINNER WILL BE IMMEDIATELY TERMINATED.
9) Rights Granted By You:
By entering this contest you understand that Pet Care Insurance, anyone acting on behalf of Pet Care Insurance, or its respective licensees, successors and assigns will have the right, where permitted by law, without any further notice, review, or consent to print, publish, broadcast, distribute, and use, worldwide in any media now known or hereafter in perpetuity and throughout the World, your entry, including, without limitation, the entry and winner’s name, portrait, picture, voice, likeness, image or statements about the contest, and biographical information as news, publicity or information and for trade, advertising, public relations and promotional purposes without any further compensation.
10) Terms:
Pet Care Insurance reserves the right, in its sole discretion to cancel, terminate, modify, or suspend the contest should (in its sole discretion) a virus, bugs, non-authorized human intervention, fraud or other causes beyond its control corrupt or affect the administration, security, fairness or proper conduct of the contest. In such case, Pet Care Insurance may select the recipients from all eligible entries received prior to and/or after (if appropriate) the action taken by Pet Care Insurance. Pet Care Insurance reserves the right at its sole discretion to disqualify any individual who tampers or attempts to tamper with the entry process or the operation of the contest or website or violates these Terms & Conditions.
Pet Care Insurance has the right, in its sole discretion, to maintain the integrity of the contest, to void votes for any reason, including, but not limited to; multiple entries from the same user from different IP addresses; multiple entries from the same computer in excess of that allowed by contest rules; or the use of bots, macros or scripts or other technical means for entering. Any attempt by an entrant to deliberately damage any web site or undermine the legitimate operation of the contest may be a violation of criminal and civil laws and should such an attempt be made, Pet Care Insurance reserves the right to seek damages from any such person to the fullest extent permitted by law.
By entering the contest you agree to receive emails periodically from Pet Care Insurance and to receive a phone call from Pet Care Insurance. You can opt-out of receiving this communication at any time by clicking the unsubscribe link in the email.
1) Limitation Of Liability:
By entering you agree to release and hold harmless Pet Care Insurance and its subsidiaries, affiliates, advertising and promotion agencies, partners, representatives, agents, successors, assigns, employees, officers and directors from any liability, illness, injury, death, loss, litigation, claim or damage that may occur, directly or indirectly, whether caused by negligence or not, from (i) such entrant’s participation in the contest and/or his/her acceptance, possession, use, or misuse of any prize or any portion thereof, (ii) technical failures of any kind, including but not limited to the malfunctioning of any computer, cable, network, hardware or software; (iii) the unavailability or inaccessibility of any transmissions or telephone or Internet service; (iv) unauthorized human intervention in any part of the entry process or the Promotion; (v) electronic or human error which may occur in the administration of the Promotion or the processing of entries.
2) Disputes:
THIS CONTEST IS GOVERNED BY THE LAWS OF The United States of America AND California, WITHOUT RESPECT TO CONFLICT OF LAW DOCTRINES. As a condition of participating in this contest, participant agrees that any and all disputes which cannot be resolved between the parties, and causes of action arising out of or connected with this contest, shall be resolved individually, without resort to any form of class action, exclusively before a court located in Utah County, Utah, USA having jurisdiction. Further, in any such dispute, under no circumstances will participant be permitted to obtain awards for, and hereby waives all rights to claim punitive, incidental, or consequential damages, including reasonable attorney’s fees, other than participant’s actual out-of-pocket expenses (i.e. costs associated with entering this contest), and participant further waives all rights to have damages multiplied or increased.
3) Privacy Policy.
Information submitted with an entry is subject to the privacy policy stated on the Pet Care Insurance website.
4) Winners List:
To obtain a copy of the winner’s name or a copy of these Official Rules, mail your request along with a stamped, self-addressed envelope to:
Pet Care Insurance
c/o: Marketing Department
260 South 2500 West Suite #303
Pleasant Grove, UT 84062
Requests must be received no later than December 3, 2019.
5) Sponsor:
The Sponsor of the contest is:
Pet Care Insurance
260 South 2500 West Suite #303
Pleasant Grove, UT 84062
6)
This promotion is in no way sponsored, endorsed, or administered by, or associated with, Facebook, Twitter, or any other Social Network. You are providing your information to PCI and not to any other party.
Comparing Employee Dishonesty Coverage & Bonding
PCI’s employee dishonesty coverage is similar to a bond, but there may be some key differences to consider.
Employee dishonesty coverage:
Can be purchased in the same transaction
Doesn’t run credit checks
Provides $10,000 per occurrence and $25,000 aggregate coverage
Bonds may differ from our dishonesty coverage by:
Checking your credit during the application process
Having a “Conviction Claus;” Often bonds won’t pay on claims unless there is a conviction
Many require you to reimbursement the bonding company after a claim is paid
