Looking for a guide on how to start an excavating business? Or how much does it cost to start an excavating business? Excavating Insurance Partners is here to provide a step-by-step guide to starting an excavating business. In this guide, we will cover the costs involved in starting an excavation company as well as the best equipment for an excavating business.

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Step 1: Choose Your Business Structure - Do I need an LLC for my excavating business?

Sole Proprietorship: Simple but lacks liability protection

Partnership: Ideal for businesses with two or more owners

Limited Liability Company (LLC): Offers Liability protection and tax flexibility. 

Corporation: Best for businesses planning to raise capital. 

For a deeper dive on which legal structure is for you, visit the SBA's website here. 

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Step 2: Register Your Business Name - How to register your excavating business with the state?

Depending on your state of operation, you may need approval before using your company name. In most states, starting an excavating company requires you to file business formation documents through the Secretary of State website. Find you specific state's website here. 

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Step 3: Obtain an Employer Identification Number (EIN) - Do you need an FEIN for your excavation business?

An EIN is essential for filling taxes, opening a business bank account, and hiring employees. You can obtain an FEIN for free by visiting the IRS's website here. 

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Step 4: File for State, City, or Local Bonds - What bonds does an excavating business need?

Depending on your local laws, it may be a requirement to be bonded prior to working. To find out what bond you need in your state, please visit our bond quoting portal here. 

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Step 5: Open a Business Bank Account

Separate your personal and business finances by setting up a business bank account. This step helps you maintain clear financial records. Find the best business banks here. 

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Step 6: Obtain Excavating Business Insurance

Protect your business from unforeseen losses and liabilities by purchasing business insurance. Excavating Insurance Partners can help you find business insurance for excavating contractors. 

• General Liability Insurance

• Contractors Equipment Insurance

• Business Auto Insurance

• Workers Compensation Insurance

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Step 7: Create an Excavating Business Plan

A solid business plan helps you outline your goals, target market, and financial projections. It’s also crucial for securing funding from lenders or investors. If you are looking for a complete guide to starting an excavating business, check out the E-Book below: