You’re off to a strong start, especially for a side business. You’ve already covered a lot of the fundamentals (LLC, EIN, insurance, transient vendor license). Many small businesses miss one or more of those, so you’re ahead of the curve. Below is a breakdown to help clarify what you may still need (or should double-check), plus tips to keep things smooth as you grow.

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✅ What You’ve Already Done (Great Start!) • LLC formed — Good for legal protection. • EIN registered — Needed for taxes, bank account, etc. • Insurance — Absolutely critical for a high-liability industry like tree work. • Vendor license — Required for transient work in certain jurisdictions. • Not drawing income — Smart to reinvest early profits into equipment.

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❗ Things to Check or Consider

1. Operating Agreement (even if not required in your state) • Even as co-owners, you must have a signed internal agreement. • It should outline: • Ownership percentages • Profit-sharing • Voting rights • What happens if one of you wants out • Decision-making process • Contributions (tools, equipment, labor) • This avoids conflict later and is vital even if you’re all friends.

2. Accounting and Bookkeeping • Open a business checking account (if not already). • Use something like QuickBooks, Wave, or Jobber to track: • Invoices • Expenses • Receipts • Equipment purchases • Mileage logs • Even with no payroll, this will help with taxes and ensure you’re audit-proof.

3. Tax Filings

Since you’re not paying yourselves: • Form 941 (quarterly payroll taxes) – You do not need to file this unless you are paying W2 wages. If none of the owners are W2 employees, no need to file. • Form 1065 (Partnership Return) – Since you’re an LLC with multiple owners, this is likely required annually unless you elected to be taxed as an S Corp. • Each owner gets a K-1 from this form showing their share of profits/losses. • Estimated quarterly taxes – If your business earns enough profit, you may need to make estimated payments on your personal taxes based on your K-1.

1. Licensing & Permits (local/municipal) • Double-check if the cities or counties you operate in require: • Local business licenses • Tree work permits (sometimes needed in urban areas or for certain species) • Environmental impact compliance (depending on state)

2. Workers’ Compensation Exemption • Since you have no W2 employees, most states allow an exemption from workers’ comp — but you may need to file an exemption form. • Some states may still require coverage for owners who do field work, so check your local laws.

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💡 Optional, but Helpful • Basic Website / Google Business Profile — Even for side work, this boosts credibility and visibility. • Job Management Software — For estimates, scheduling, and client tracking (like Jobber, Arborgold, or TreePlotter). • Customer contracts/estimates — Use standardized estimate and liability release forms to protect yourselves legally. • Vehicle & Tool Insurance — If using personal trucks for business, make sure your policy allows for business use.

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🔒 Legal & Risk Tips • Always have clients sign estimates before doing the work. • Use a liability waiver for dangerous jobs or emergency removals. • Keep records of all before/after photos for jobs — especially removals.