Service Business Setup

• Business structure decision framework (LLC vs. sole prop vs. S-Corp — non-legal framing)
• State formation coordination checklist with step-by-step filing guidance
• EIN acquisition walkthrough and documentation
• Business banking setup — account types, separation requirements, initial funding
• Payment acceptance setup — credit cards, ACH, checks, mobile payments

• QuickBooks Online setup with service-specific chart of accounts (not the default template)
• Income categories by service type: recurring contracts, one-time jobs, add-on services
• Cost tracking: labor, materials/supplies, equipment, vehicle, subcontractors
• Overhead separated from direct job costs — insurance, marketing, admin, office
• Invoicing structure: standard terms, deposit requirements, recurring billing templates
• AR aging tracker and weekly cash review habit installed

• Weekly owner meeting agenda (15–30 min — revenue, margins, cash, pipeline review)
• Simple KPI scoreboard: Revenue / Margin by Service Type / Cash / Recurring Base
• Role clarity one-pager for each active role (field crew, office, owner-operator)
• One SOP template per critical process identified during engagement
• 90-day maintenance guide — what to review weekly and monthly
• Handoff package: complete documentation, all credentials organized

What business structure is best for a service company?

Most owner-led service businesses start as a single-member LLC. An LLC provides personal liability protection — important when you're working on client properties, sending employees or crews out, and dealing with contracts. For partnerships, a multi-member LLC with a proper operating agreement is the standard starting point. S-Corp election can reduce self-employment taxes once net income reaches a certain threshold. That's a decision for your CPA based on your specific numbers — not a YouTube video.

Do I need an LLC for a cleaning company or lawn care business?

You can operate as a sole proprietor, but an LLC separates your personal assets from business liability. If someone slips on a freshly mopped floor, if a crew member damages a client's property, or if a lawn mower throws a rock through a window — without an LLC, your personal savings, home equity, and vehicles are exposed. The LLC costs $50–$500 to form depending on your state. The protection it provides is worth multiples of that.

How do I set up bookkeeping for a service business?

Start with QuickBooks Online (Plus if you need per-job or per-client tracking). Replace the default chart of accounts with service-specific categories: Income by service type (recurring contracts, one-time jobs, add-on services), Cost of Sales (labor, materials/supplies, equipment, subcontractors if applicable), and Overhead (separate from job costs — vehicle, insurance, marketing, office). Set up invoicing with your standard terms, deposit policy, and recurring billing for contract clients.

How do I price my services to make a real profit?

You need to know your actual cost to deliver the service: direct labor (hourly rate × time including drive time), materials and supplies consumed, equipment wear and vehicle cost per job, and your overhead allocation. Most service businesses undercharge because they price based on competitors or gut feel instead of actual cost data. A properly configured bookkeeping system that tracks cost per service type is the prerequisite — without it, pricing is guesswork.

Should I set up recurring billing from day one?

Yes — recurring revenue contracts are the foundation of a sustainable service business. Whether it's weekly cleaning, monthly pest control, or seasonal lawn maintenance, set up the invoicing infrastructure before you sign your first contract: recurring invoice templates in QuickBooks, standard contract terms, auto-payment if possible. Track recurring revenue separately from one-time jobs in your chart of accounts. The service businesses that survive slow periods are the ones with a recurring base.

What insurance do I need for a service business?

At minimum: General Liability insurance (covers property damage and bodily injury at client sites), Commercial Auto (if using vehicles for business), and Workers' Comp (required in most states once you have employees). Depending on your service type, you may also need Professional Liability, a surety bond (required in some states for certain services), or an inland marine policy for tools and equipment. Talk to an insurance agent who specializes in service businesses — generic policies often have exclusions that leave you exposed.

How do I manage cash flow with commercial clients who pay Net 30?

Three things: (1) Build your cash reserve before you take on Net 30 clients — you need to fund 30–60 days of operating costs while waiting for payment. (2) Invoice the same day service is delivered, not a week later. (3) Set up AR aging in QuickBooks and review it weekly — follow up at 7 days past due, not 30. For new commercial clients, consider requiring a deposit or starting with Net 15 terms until payment reliability is established.

What's the biggest mistake service businesses make when starting out?

Treating revenue as income. A cleaning company does $12,000 in a month and the owner thinks they made $12,000. But labor was $5,000, supplies were $800, vehicle costs $600, insurance $400, and they haven't set aside anything for taxes. Actual take-home: maybe $3,500 — before self-employment tax. Without a bookkeeping setup that shows real costs and real margins by service type, every month feels profitable until it isn't.

How long does it take to set up a service business properly?

DIY, expect 4–8 weeks: state LLC filing (1–4 weeks), bank account (a few days), QuickBooks (hours if you know what you're doing, weeks if you're figuring it out), insurance (1–2 weeks for quotes and binding). Our Foundation Install compresses the business infrastructure — entity through operating cadence — into 21 days with correct setup across all five foundations.

Is this only for contractors, or does it work for any service business?

The Foundation Install works for any owner-led service business: cleaning companies, pest control, lawn care and landscaping, property maintenance, pressure washing, pool service, junk removal, mobile detailing, handyman services — any business where you're delivering a service at a client's location. The structure is the same: entity, banking, bookkeeping, invoicing, operating cadence. We tailor the chart of accounts and processes to your specific service type.