How to Start a Headstone Business

Start a headstone business by following these 10 steps:

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

We have put together this simple guide to starting your headstone business. 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 Headstone Business 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 headstone business?

Headstone owners should account for the rent/mortgage of their workshop, headstone materials, and marketing costs. They’ll also need to prepare for standard expenses of any new business, such as registration fees, permits, and commercial insurance.

What are the ongoing expenses for a headstone business?

A headstone business will need to account for the rent/mortgage of their space, the cost of replacing equipment, and the premium for commercial insurance. Stone cutting can be a dangerous business and owners are highly encouraged to have the liability insurance to cover themselves against an injury or workers’ compensation claim.

Who is the target market?

Any loved one who is planning to give the deceased a physical tribute. Traditionally, headstones are used for marked graves, but some people will order a headstone for the urn that holds a person’s ashes. These headstones are built from a solid block of stone, but have a back that can be opened where the urn can go. Owners should also strongly consider marketing their business to pet owners as well. This is a growing market that can vastly boost your numbers.

How does a headstone business make money?

Headstone companies charge per headstone based on labor, the raw cost of materials, and general business expenses. They will also typically budget a profit margin based on the size and scope of their operation.

How much can you charge customers?

Average costs for a headstone are around $2,000. A flat headstone may cost $1,000 or less, while a more elaborate upright headstone can cost up to $10,000 or more.

How much profit can a headstone business make?

Headstone businesses can make a substantial profit on their creations, especially for top talent. The funeral industry makes more than a 60% margin on all services, including tombstones.

How can you make your business more profitable?

Consider offering additional engraving services for vaults or crypts. These elaborate resting places can be made more beautiful with your etchings, especially if they're meant to house several generations of a single family.

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 headstone business 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.

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?

People who want to give the dead a headstone that is worthy of the time a person spent on Earth. Owners should want to work with grieving friends and family who wish to commemorate their loved ones.

What happens during a typical day at a headstone business?

Headstone companies will spend most of their time working on orders. Staff will spend time gathering information from customers about their exact parameters and expectations. They’ll also need to order materials, restock supplies, and build an attractive and compassionate website.

What are some skills and experiences that will help you build a successful headstone business?

Headstone business owners are typically those familiar with the world of stone working. However, you’ll also need some degree of salesmanship, financial savvy, and compassion to successfully run this business. You should feel comfortable discussing the business of death while being mindful of those who aren’t.

What is the growth potential for a headstone business?

The world is quickly running out of burial space, so there is some risk here. It is the tradition of certain religious groups such as Muslims and Christians to bury their dead, but other people are beginning to turn to cremation. Owners should consider the demographics of their community before starting the business.

However, headstones can enjoy a larger market for those willing to think outside the box. For example, many people would still like a physical reminder of their loved ones, even if the person isn’t physically in the grave. You can also consider shipping your headstones overseas. Mourners in other countries may want a specific type of stone that can't be found in their country, which can open up a whole new demographic.