How to Start a Fish Farm

Start a fish farm by following these 10 steps:

1. Plan your Fish Farm
2. Form your Fish Farm into a Legal Entity
3. Register your Fish Farm for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Fish Farm
6. Get the Necessary Permits & Licenses for your Fish Farm
7. Get Fish Farm Insurance
8. Define your Fish Farm Brand
9. Create your Fish Farm Website
10. Set up your Business Phone System

We have put together this simple guide to starting your fish farm. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Fish Farm Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a fish farm?

Costs will range, depending on the size and scope of the operation you are starting.

If you are starting an aquarium-based farm, you will need:

• Tanks and pumps
• Fish food and refrigerators
• Water aerators
• Water testing kits and equipment
• An investment in the initial parent fish or eggs/frye

If you are running at a commercial fish farm you will need:

• Land for ponds
• Equipment for excavating ponds
• Commercial-sized pumps, aerators, and water sources/reclamation devices
• Boat, motor, and equipment for cleaning and managing the pond.
• Industrial fish food supply
• Fish processing equipment for shipping and exporting

What are the ongoing expenses for a fish farm?

Fish farming will have some variation in expenses, depending on what kind of fish and how many you are raising. Average associated costs will stem from:

• Buying eggs and/or fingerlings for your re-stock purposes.
• Food and maintenance of the fish.
• Replacing pumps and oxygen/aeration systems.
• Digging new ponds or buying additional tanks.
• Electricity per month.
• Plumbing maintenance.
• Insurance for employees and the business.
• Transporting/shipping of fish in and out of your farm.

Who is the target market?

Customer types will vary, depending on the types of fish you are raising. If you are raising fish for sport, re-stocking, or commercial food products, your base will consist of larger businesses, which need a higher volume of fish. Some customers may even consist of state or federal organizations who re-stock depleted natural resources.

If you raise fish for aquariums or as pets, your customer group will be pet shops and specialty fish dealers. You may even choose to have customers contact you directly, in order to expedite sales and cut the cost of the middle man.

How does a fish farm make money?

Fish farms make money through the sales of their farm raised livestock. If your fish farm offers customers the opportunity to catch their own fish, you can also charge for fishing equipment, access to the fishing ponds, and fish cleaning services. 

How much can you charge customers?

For fish re-stocking or for commercial food services, you will sell fish by quantity or by the pound. Depending on the species, prices can range between $10-$30 per pound or ranging from $40 to upwards of $500 per 100 count.

If you are raising exotic or specialty fish, the pricing will fluctuate, depending on the market. Some exotics are sold for upwards of $1,000 per fish. This is, of course, a high end buying group, and you will need to research potential buying group(s) in order to determine which species of fish are most profitable to farm in your area.

How much profit can a fish farm make?

Depending on what kind of fish you’re farming and how large the operation, the annual salary can range between $35,000 to upwards of $150,000.

How can you make your business more profitable?

Some fish farm owners also choose to expand their market base by selling fish related products, such as food, pumps, aeration units, water testing supplies, or harvesting devices. By offering these additional items, fish farmers stay in contact with potential customers, even when not selling fish.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your fish farm is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a fish farm business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

A fish farm business is generally run out of a plot of land or large building. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a fish farm business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your fish farm business will be in compliance and able to obtain a CO.

Food Regulations

When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection. Tips for faring well on a health inspections

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Fish farm entrepreneurs should have a background in farming and have familiarity with basic biology of fish. This job will also involve some manual labor from time to time. In addition, since you’re running your own farm, knowledge of the economics and business of farming is also helpful.

What happens during a typical day at a fish farm?

Overseeing this type of operation, either small scale or large, will require hands-on management of your livestock. Depending on the type of fish you’re raising, you will be carefully monitoring the living conditions and water quality regularly. Other things you may have to do include:

• Check and service pumps for tanks and ponds.
• Test pH of water and adjust accordingly
• Feed fish and check water levels.
• Extract fish for sale and shipment
• Contact customers and distributors about inbound and outbound shipments.
• Train staff on proper farming techniques

What are some skills and experiences that will help you build a successful fish farm?

Having knowledge or experience in the business and industry of livestock rearing is important. In particular, understanding fish and how to take care of them is critical. You will also need to be able to connect with and maintain positive business contacts, in order to market and sell your product. Being personable and pleasant, yet shrewd in business, is necessary to continue to be profitable. Immerse yourself in the industry and stay up to date on the trends and moves of the market.

What is the growth potential for a fish farm?

Fish as a food source is growing in popularity. Fish farms for commercial output are replacing some of the land once used for traditional plant crops. For aquarium enthusiasts, the desire for new and unique, as well as healthy, species is always strong. With the popularity of custom fish tanks also expanding, there will be a need for fish to fill them.