How to Start a Kennel Business

Start a kennel business by following these 10 steps:

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

We have put together this simple guide to starting your kennel 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 Kennel 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 kennel business?

There are many costs associated with starting up a kennel business. The two largest costs are usually securing a facility for the business and finding insurance for it.

A facility should have room for crates, several runs for individual dogs and at least one large play area, where dogs may run around alone or with other dogs. The crates should be indoors or in dog houses so that dogs are sheltered during inclement weather, and there also ought to be a small indoor play area if the main area is outdoors.

When looking at insurance policies, kennel owners should pay careful attention to each policy’s exclusions. Many policies will exclude certain dog breeds from their coverages. In order to accept all types of dogs, kennels should have a policy that doesn’t exclude any breeds.

Additional startup expenses include purchasing crates, food bowls, leashes, dog food and similar items.

Kennel business owners that are trying to keep their initial costs minimal may want to look for a facility in a rural area and only start with enough equipment to keep a few dogs. Boarding rates at kennels in rural areas, however, are typically lower than the rates that kennel businesses near airports and major cities charge.

What are the ongoing expenses for a kennel business?

A kennel business’ primary ongoing expenses include its insurance premiums, license fees (if any), and the occasional maintenance that’s needed to repair fences or other facilities. Of these, insurance is often the largest cost.

Who is the target market?

The ideal customer is a dog owner who frequently travels, either for work or leisure, and has discretionary income. Such a person will need their dog watched frequently, and they have money to pay someone to board their pooch. A dog owner who has multiple dogs will need to pay even more, as most kennel businesses charge for each dog.

How does a kennel business make money?

Kennel businesses are paid a flat amount to house dogs for a set period of time. Dog owners may leave their dogs for anywhere from one night to a month or longer.

How much can you charge customers?

Like hotels, kennel businesses’ rates vary depending on how many amenities they provide. Kennels that provide no-frills accommodations for dogs typically charge between $12 and $26 per dog, per day. These kennels often include little more than a cement floor, and fenced-in run or play area. Kennels that are a little nicer usually charge $22 to $55 per dog, per day, and a few extremely high-end kennels charge as much as $110 per dog, per day. The fanciest kennels have rugs, actual furniture, fancy food, comfortable beds and even art for the dogs they board.

It’s also common to vary rates according to the weight of a dog, with large dogs paying as much as 50 percent more than small dogs. Some kennels provide a discount for boarding more than one dog at a time.

How much profit can a kennel business make?

A kennel business’ earning potential is limited by the rates for boarding dogs in its region and how many dogs it can hold. A low-end kennel that is able to host up to 30 dogs and charges $20 per night can bring in as much as $600 in one night. The kennel may not always be full, though. On average, it might have 10 dogs every night, thus earning an average of $200 per night. Over the course of a year, that would add up to $73,000. A fancier kennel could earn much more, possibly several hundred thousand dollars in a year.

How can you make your business more profitable?

Kennel businesses can increase their revenue by providing add-on services. Some common add-ons including baths, premium food, extra play time, special treats and medication administration. Kennels can either charge extra for these services, or provide these services as complimentary services but increase their per-night rates.

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 kennel 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.

State & Local Business Licensing Requirements

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

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?

Anyone who loves dogs may be well-suited for owning a kennel business, as most of the work involves taking care of dogs. Owners often have to play with dogs, and they sometimes need to physically move stubborn pooches. Therefore, owners should be in decent physical condition.

What happens during a typical day at a kennel business?

Kennel business owners spend much of their time looking after dogs. This includes putting dogs to bed at night, getting them up in the morning, letting them out as needed, feeding them, exercising them and playing with them. It also involves cleaning up after them as necessary.

When not spending time directly interacting with dogs, owners often take care of administrative items and repair any damaged kennels or fences.

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

Kennel business owners should be comfortable around dogs and know how to interact with a wide array of dog breeds and personalities. Owners who don’t have a lot of experience around dogs may want to volunteer at their local SPCA or another animal shelter.

While there aren’t any certification requirements for kennel business owners, owners may want to take a certificate or associate degree program in small animal care. These programs teach students how to safely treat and handle dogs and other small animals. There are programs offered at schools throughout the country. There aren’t many online programs available, though, because learning to safely handle animals is a hands-on activity.

Kennel owners should also have a relationship with a local veterinarian who provides emergency vet services for dogs, in case a dog has medical issues while boarding. Business owners can build this relationship by contacting a local vet to make sure they will take dogs on an emergency basis.

What is the growth potential for a kennel business?

A kennel business can be as small as a one-person operation or as large as a national chain. Many independent kennels have just one location, while national chains often operate through franchise structures.

Not sure if a kennel business is right for you? Try our free Business Idea Generator and find your perfect idea.