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During the holiday season, many people and businesses enjoy having decorations. However, not everyone enjoys or is physically capable of decorating. Christmas lights installation companies offer holiday decorating services to individuals and businesses who want or need help putting up and taking down lights and other decorations.

During the holiday season, many people and businesses enjoy having decorations. However, not everyone enjoys or is physically capable of decorating. Christmas lights installation companies offer holiday decorating services to individuals and businesses who want or need help putting up and taking down lights and other decorations.

Follow these ten steps to start a Christmas light installation business:

Prepare your Christmas Lights Installation Company

Create a legal entity for your Christmas light installation business.

Register your Christmas Light Installation Company with the IRS.

Create a Business Bank Account and a Credit Card

Create an accounting system for your Christmas light installation company.

Get the Permits and Licenses You Need for Your Christmas Lights Installation Business

Purchase Christmas Lights Installation Commercial Insurance.

Create a brand for your Christmas Lights Installation Company.

Make a website for your Christmas Lights Installation Company.

Configure your Business Phone System

Starting a company entails more than just registering it with the state. This straightforward guide to beginning your own Christmas light installation company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.

STEP 1: Make a business plan.

A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:

What are the initial and continuing expenses?

Who is your intended audience?

How much money may you charge your customers?

Fortunately, we have done a lot of the legwork for you.

What are the expenses associated with starting a Christmas light installation business?

The following are the initial costs for starting a Christmas light installation business:

a truck used to bring personnel and lights to customers’ locations

ladders for lighting installation

lights of commercial quality

insurance

Because a Christmas lights installation company is often begun to supplement another seasonal industry, most business owners who enter this line of work already have a car, ladders, and insurance from their previous venture. A painter or landscaper, for example, is likely to already have the necessary equipment and insurance.

Some company owners may be tempted to buy cheap lighting to save money in the beginning, but this technique often backfires. Cheap lights are more prone to fail than commercial-grade lights, and the labour expenses of repairing broken lights often outweigh any savings offered by the less costly lights.

Rather of acquiring low-quality, low-cost lighting, firms could invest in a few samples of high-quality lights. Representatives may use these samples to demonstrate consumers how the lights appear, and then the first payments from buyers can be used to purchase the lights that will be utilised in displays.

Finally, some company owners may wish to consider purchasing a franchise. The cost of starting a Shine holiday lights business is between $10,000 and $15,000. While franchises might provide certain attractive advantages, company owners are not required to begin their venture as a franchise. Many people start successful independent enterprises.

What are the recurring costs of a Christmas light installation company?

A Christmas lights installation business’s continuous expenditures include storage fees for lights throughout the year, personnel pay, and equipment costs. Customers’ quotations often include storage charges. During the remainder of the year, employees’ pay and equipment expenditures are often covered by another seasonal company.

Who is the intended audience?

While most Christmas light installation firms have a large number of home clients, a company’s ideal customer is another company. Firms are typically ready to spend more money on displays than people are, yet most businesses do not have personnel to install lights for them. Individual homes prefer to install their own lights, giving them a less dependable source of regular revenue.

How does a company that instals Christmas lights generate money?

Customers pay a Christmas lights installation firm to install, service, and remove beautiful lights over the holiday season. The majority of clients are offered personalised quotations depending on the size and intricacy of their display.

How much money may you charge your customers?

The average cost of installing Christmas lights is $1,500, but exceptional installations may cost up to $15,000 or $20,000. Many companies will not accept displays for less than $500 or $1,000.

How much money can a Christmas light installation company make?

According to Stephen Lisk of Stephen Lisk Landscape Management in New Jersey, a Christmas light installation company may bring in $50,000 to $100,000. This is on top of any money generated by other seasonal businesses.

How can you increase the profitability of your company?

Offering decorative lighting services at other times of the year might help a Christmas light installation firm make additional cash. Some people may be willing to pay to decorate for Halloween, and many others may employ a professional service for weddings or other special occasions.

STEP 2: Establish a legal entity

Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.

Setting up a legitimate business organisation, such as an LLC or corporation, safeguards you from being held personally accountable if your Christmas light installation company is sued.

STEP 3: File your taxes

Before you can begin for business, you must register for a number of state and federal taxes.

To register for taxes, you will need to get an EIN. It’s really simple and completely free!

Taxes on Small Businesses

Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).

These guides will teach you more about small company taxes:

Taxes on LLCs

LLC vs. sole proprietorship

Corporation vs. LLC

S Corp vs. LLC

How to Form a S Corporation

S Corporation vs. C Corporation

There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.

STEP 4: Establish a company bank account and credit card

Personal asset protection requires the use of distinct business banking and credit accounts.

When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.

Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.

Establish a business bank account.

Opening a business bank account is not only required when asking for business financing, but it also:

Separates your personal assets from the assets of your firm, which is required for personal asset protection.

It simplifies bookkeeping and tax reporting.

Create a net 30 account.

Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.

Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.

Apply for a business credit card.

Obtaining a business credit card benefits you in the following ways:

Put all of your company’s costs in one location to separate personal and business spending.

Build your company’s credit history, which will be important for raising funds in the future.

STEP 5: Establish business accounting

Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.

STEP 6: Obtain all required permissions and licences

Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.

Requirements for State and Local Business Licensing

To run a Christmas light installation company, several state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.

For information on local licences and permissions, visit:

Check with the clerk’s office in your town, city, or county.

Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.

For information on local licences and permissions, visit:

Check with the clerk’s office in your town, city, or county.

Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.

Contract for Services

A services contract defining terms and conditions of service is often put in place in enterprises where services are supplied on an ongoing basis. Before beginning a new project, you may want to ask customers to sign a services agreement. By defining payment terms and conditions, as well as service level standards, this agreement clarifies client expectations and reduces the possibility of legal issues. Here’s an example of a service agreement.

Recommended: When you join up for Rocket Lawyer’s premium membership, you can easily write a professional service agreement for your Christmas lights installation company. Members have access to hundreds of legal agreements and on-call lawyers for free legal assistance for $39.95 each month.

Occupancy Certificate

A huge storefront may be used to conduct a Christmas light installation company. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.

If you intend to rent a storefront:

In most cases, it is the landlord’s obligation to get a CO.

Before leasing, make sure your landlord has or can receive a valid CO for a Christmas light installation company.

A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.

If you want to buy or construct a storefront:

It is your responsibility to secure a valid CO from a local government entity.

Examine all building laws and zoning restrictions for your business’s location to verify your Christmas light installation company is in compliance and may receive a CO.

STEP 7: Obtain commercial insurance.

Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.

There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.

Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.

STEP 8: Establish your brand

Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.

How to Market and Promote a Christmas Light Installation Business

Most Christmas light installation company owners already have a market to sell decorating services to since they have established seasonal enterprises. Business owners may notify their existing clients about the additional services they’re providing, and some may sign up for Christmas decoration. Berns claims that 70 percent of his holiday decorating customers were his first landscaping clients.

How to Keep Customers Returning

Customers who buy lights from a Christmas lights installation company are more likely to return. Once clients have purchased lights, they are more likely to return to the same company year after year. They’ve already made an initial expenditure, and moving to a different Christmas decoration service would almost certainly need another hefty upfront purchase of lights.

STEP 9: Create your company’s website.

After you’ve defined your brand and designed your logo, the next step is to build a website for your company.

While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.

The following are the primary reasons why you should not put off developing your website:

Every legitimate business has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.

Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.

STEP 10: Install your company phone system.

Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.

Get the legal clarity and support you need to move forward with confidence. Our team is ready to help, and your first consultation is completely free.
Schedule a Legal Consultation Today!
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Schedule a Legal Consultation Today!
Get the legal clarity and support you need to move forward with confidence. Our team is ready to help, and your first consultation is completely free.
Book Your Free Legal Consultation Now
Get the legal clarity and support you need to move forward with confidence. Our team is ready to help, and your first consultation is completely free.
Schedule a Legal Consultation Today!
Book Your Free Legal Consultation Now
Schedule a Legal Consultation Today!
Get the legal clarity and support you need to move forward with confidence. Our team is ready to help, and your first consultation is completely free.
Book Your Free Legal Consultation Now