How to Start a Junk Removal Business

Whenever unwanted belongings cannot be thrown out in the normal trash, a junk removal service can help. People and businesses need help hauling away broken furniture, clearing out an attic full of trash, or even emptying an estate or foreclosure. The junk removal industry is competitive but growing, and you can start from scratch or buy into a franchise. If you’re up for the challenge, owning a junk removal business can be a profitable and rewarding adventure that involves not only hauling heavy garbage but also scouting local donation and recycling solutions.

Learn how to start your own Junk Removal Business and whether it is the right fit for you.


Start a junk removal business by following these 9 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your junk removal business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

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:

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

What are the costs involved in opening a junk removal business?

At a minimum, you can start up a junk removal business with these resources:

  • A truck or large van
  • Basic tools and cleaning supplies
  • Location for sorting


The first vehicle represents the biggest hurdle. You can use your own truck, a new or used vehicle, or a full commercial tractor-trailer. Other options include vehicle decals and logowear to brand your business and project professionalism to customers.

What are the ongoing expenses for a junk removal business?

At a minimum, you can start up a junk removal business with these resources:

  • A truck or large van
  • Basic tools and cleaning supplies
  • Location for sorting

The first vehicle represents the biggest hurdle. You can use your own truck, a new or used vehicle, or a full commercial tractor-trailer. Other options include vehicle decals and logowear to brand your business and project professionalism to customers.

Who is the target market?

Individuals and businesses are both frequent junk removal customers. Real estate and storage facilities are two industries with a particular need. Residential customers often include empty nesters and retirees looking to declutter.

How does a junk removal business make money?

Pricing typically centers around the volume of garbage removed, measured in cubic feet inside the truck. Other fees might apply to especially heavy items, certain dangerous materials, cleanup, and rush appointments.

How much can you charge customers?

For a single junk removal visit, homeowners most often spend between $139 to $373, according to HomeAdvisor. This often covers a load of junk consisting of a few pieces of furniture or appliances, or a small room full of garbage. With pricing based on junk volume, it can be more or less depending on the customer’s needs.

Junk removal business owners need accurate knowledge and data of all overhead, including:

  • Employee wages
  • Insurance (injury, liability, business auto, and more)
  • Landfill fees and other disposal costs
  • Fuel costs and auto payments
  • Office, marketing, and other expenses

In some cases, the junk removal business can benefit financially during the disposal process, such as by selling scrap metal or receiving tax deductions for donations.

The largest national franchisors offer “no hidden fees” pricing. The crew gives an estimate upon arriving at the site, and the customer decides whether to proceed.

More information about pricing models for junk removal businesses:

How much profit can a junk removal business make?

Each vehicle can average about one typical residential job per hour. Some jobs will take a long time, but those jobs will also bring in more revenue. Many junk removal businesses have a minimum charge of around $125 to make sure that expenses are covered for one hour of work. The size and density of your service area greatly affect driving time, which in turn affects your efficiency.

With enough demand and fast workers, a junk truck can bring in $500 to $1,500 per day, or about $500 for each truckload of junk. Many businesses start with one truck. Investing in a larger fleet greatly affects profitability.

How can you make your business more profitable?

Junk removal businesses can scale easily thanks to branding and fleet size increases. Add trucks with the company logo and employees to drive them, and the owner can scale as much as the market demands.

Completing more jobs in less time is the best and simplest way to maximize profits for your junk removal business. Strategizing your drivers’ routes, training employees to work quickly, and growing the fleet all help with booking more customers each day.

What will you name your business?

Choosing the right name is very important. If you don’t have a name in mind already, read our detailed guide on how to name a business or get some help brainstorming a name with our Business Name Generator.

Then, when registering a business name we recommend checking if the business name is available in your state, federally by doing a trademark search, searching the web, and making sure the name you choose is available as a web domain to secure it early so no one else can take it.

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After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

STEP 2: Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your junk removal business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

Check out the Top Business Formation Services from our friends at StartupSavant.

You should also consider using a registered agent service to help protect your privacy and stay compliant.

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!

A cube with LLC printed on its sides

You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

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.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • It also makes accounting and tax filing easier.
A cube with LLC printed on its sides

Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment 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.

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.

State & Local Business Licensing Requirements

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

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For more information about local licenses and permits:

Service Agreement

Junk removal businesses should consider requiring clients to sign a service agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example service agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your junk removal business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

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.

Learn more about General Liability Insurance.

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.

Recommended: Learn what business insurance for your Junk Removal Business will cost.

Business Insurance for
Junk Removal Business

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

How to promote & market a junk removal business

Customers need to know your name and trust you; therfore, quality branding and referrals are both key to marketing a junk removal business. Funny names and bright colors are popular and effective for direct advertising campaigns. A strong online presence also helps capture more local customers.

STEP 9: Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

Start A Junk Removal Business In Your State

A cube with LLC printed on its sides

Select your state below for an in-depth guide on completing each of these steps in your home state.

Is this Business Right For You?

Problem solvers, people persons, and those who like working with their hands can succeed and find joy in running a junk removal business. Running the show involves managing plenty of people and resources while sticking to a tight schedule.

Junk removal businesses operate by appointment, so taking days off can be up to the owner. Night and weekend appointments are not necessary but are often in demand and profitable.

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Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a junk removal business?

Scheduling pickups and finding the right drop-off points are the two major challenges for a junk removal business owner. Customers don’t want to be kept waiting for appointments, so punctuality is crucial. People also expect you to dispose of everything in relatively eco-friendly ways. The actual junk removal simply requires appropriate strength and a fleet of trucks.

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

Successful junk removal business owners typically exemplify these traits:

  • Knowledge of business planning and management, including the ability to assess overhead costs and weigh liability issues while determining a realistic pricing model that can compete in the local market.
  • The communication skills to work with a team of junk haulers who will be doing the bulk of the labor, which is sometimes extremely strenuous; the owner-manager needs to train and motivate these employees to provide excellent service and always be reliable.
  • Customer service skills are always necessary, as a junk removal business needs to build a strong reputation in the community, earn positive online reviews, and stand out from the crowd.

What is the growth potential for a junk removal business?

Junk removal businesses can easily scale up with more trucks and employees. Franchise owners are generally limited to service areas, so you may need to purchase additional areas. On that note, you could potentially franchise your own junk removal startup in the long run.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

Next Steps

Get more ideas with our Business Ideas Generator.

Check out our How to Start a Business page.

Sign up at the Business Center to access useful tools for your business.

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