How to Start a Clamming Business

Start a clamming business by following these 10 steps:

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

We have put together this simple guide to starting your clamming 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 Clamming 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 clamming business?

The costs associated with opening a clamming business are minimal. Business owners need:

• A commercial shellfish license
• A metal gauge for measuring clams
• A few 5-gallon buckets
• Footwear that offers protection (wetsuit shoes work well)

If desired, a rake, inner tube and rolling machine (for sorting) may also be purchased. Even with these items, it’s often possible to outfit a clamming business for just a few hundred dollars including any necessary licenses.

Business owners who need a boat to reach clamming grounds will have to spend more, but a used rowboat or skiff suffices and doesn’t cost much.

What are the ongoing expenses for a clamming business?

The ongoing expenses for a clamming business are almost nothing. If a business has a powerboat, then fuel and oil must be purchased. Otherwise, the only main ongoing expense is whatever annual fee must be paid to keep licenses current.

Who is the target market?

Clams eventually make their way to seafood shops, grocery stores and restaurants. Clamming businesses, however, sell to clam wholesalers who are middlemen in the supply chain.

How does a clamming business make money?

Once clams are sorted, they’re sold to a wholesaler in the area. Most clamming regions have only one or two wholesalers.

How much can you charge customers?

The wholesale price of clams is determined by the market. Most clams sell for around $2.25 per pound, but littlenecks can command higher prices.

How much profit can a clamming business make?

Business owners can earn between $100 and $200 per half-day of work. Exactly how much business owners make depends on how hard they work and how plentiful the clams are.

How can you make your business more profitable?

In addition to harvesting clams, business owners may also be able to gather certain crabs or mussels that they come across while working. These won’t be major income streams, but they can provide a little boost if there’s someone in the area who will buy them.

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 clamming 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

In most states, it is necessary to obtain a Clamming license. Certain state permits and licenses may be needed to operate a Clamming business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

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

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

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 likes being outside near the water and isn’t afraid of hard work may enjoy running a clamming business. Business owners spend hours outside on the shore or in shallow water searching for clams. Working in the muck is guaranteed to make a person dirty and reaching down for clams is physically tiring, but few other jobs allow people to spend their work day near the ocean and return home each night.

Clamming can be especially good work for someone who’s looking for a part-time job and has other obligations. While business owners must be available to work at specific times -- there are only 4 to 5 hours of work per day (see below) -- children can be brought along when necessary, and there is the flexibility to take a day off when the need arises.

What happens during a typical day at a clamming business?

A clamming business owners’ day is dictated by low tide, as Luke Jenks explains. Luke and his clamming partner Mike start their day 2 to 2.5 hours before low tide and continue working until 2 to 2.5 hours after low tide. Outside of this time frame, the water is too deep to work effectively. Most clammers don’t work in the middle of the night, which is why work is limited each day.

After arriving at a clamming location by foot or boat, business owners begin searching for clams. Luke feels around for them with his feet, but others use rakes or shovels (see Jump-Starting). Once clams are gathered, they’re put into a bucket and sorted at the end of the day. Many clammers use an innertube to stabilize and move the bucket. Sorting can be done by hand or with a mechanical sorter.

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

Running a clamming business requires little more than knowing how to find and harvest clams.

There are classes on clamming (e.g. The University of Rhode Island offer courses), but taking a course is often unnecessary. Business owners can usually find a fellow clammer in the area who will teach them the tricks of the trade and not charge a fee for doing so.

Those who don’t have a mentor or want additional information can read books, such as The Compleat Clammer and Here’s How To… Clamming.

What is the growth potential for a clamming business?

Clamming businesses remain small, and most are one-person operations. There are few barriers to prevent would-be employees from establishing their own businesses, and the profit margin often doesn’t justify hiring employees. Additionally, work in many states is seasonal.