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How to Start a Christmas Light Business That’s Legal

Published on August 12, 2021

In order to protect your business for long-lasting growth, it’s important you know how to start a Christmas light business that’s legal.

Since there are a lot of caveats that go into starting a business, you can use this quick guide to simplify the process and help you navigate everything:

  • Know how to choose the best business name and make it official
  • Take advantage of your financial advisor’s insight
  • Make your employees legal with EIN’s
  • Find out how to register your business
  • Protect yourself with insurance
  • Utilize the best software

By the end of this complete guide, you’ll have everything you need to know to legally start a Christmas light business.

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1. Choose a Name for Your Christmas Light Business

The name of your Christmas light business is important because it tells your clients who you are, where you’re located, and what you do.

Plus, the right business name needs to be SEO friendly so that it can appear in primary keyword searches too.

In order to choose the best name for your business, choose a name that:

  • Isn’t already used in your state
  • Defines what services you offer
  • Reflects who you are as a business
  • Separates you from your competition

Using the guidelines above, think about some business names that are easily marketable.

Next, look at your state’s database to find out if that business name is already in use. Though, keep in mind, while most states offer online name searches, a few still ask for in-person visits or mail-in submissions.

Before finalizing your business name, remember to choose something that’s unique to you. Plus, it doesn’t have to be complicated. For example, your business name can be as simple as “Johnson’s Christmas Light Installation Company” or “Johnson’s Christmas Light Experts.”

2. Meet With a Trusted Financial Advisor or Accountant

As you explore how to start a Christmas light business, you might be tempted to jump ahead and skip this step. However, it’s vital that you meet with a trusted financial advisor or accountant.

Before you can start making the big decisions, like hiring, budgeting, and registration, you need to consult with a financial advisor first.

In turn, a great financial advisor or accountant will help guide you to the right direction. As a result, you’ll get your Christmas light installation business started out on the right foot.

For example, a trusted financial advisor will help you make tough decisions like:

  • Setting a budget that’s right for you
  • How many employees you can afford to hire
  • Deciding how you should register your business

Keep in mind, this is one of the most important steps you’ll take towards discovering how to start a Christmas light business that’s legal.

3. Get an EIN for Your New Employees

If you’re hiring employees for the first time, you’ll need to get an EIN (employee identification number).

In order to get one, go to IRS.gov and start the process with an online application.

On their website, they’ll tell you everything you need to know about the United States hiring process for new employers.

By the way, if you’re in Canada, the process is different. Instead of needing an EIN, you’ll need an SIN (social insurance number).

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4. Register Your Christmas Light Business

Earlier, we discussed how a trusted financial advisor or accountant will help you choose how to register your Christmas light business.

As you’re exploring how to start a Christmas light business, how you register your business plays into a lot of legal factors.

For example, depending on how you’re registered, you could be personally liable for your business’ finances (e.g. if your business goes bankrupt, then you can personally go bankrupt).

Also, keep in mind, there are many factors you’ll need to think about before choosing if you want to register your business as an S Corporation or LLC.

Plus, how you register your business can make or break your business as you file your taxes next year.

A great financial advisor or accountant will help you to take everything into consideration, walk you through the entire process, and help you decide on your best option.

Also, depending on your state’s guidelines, you may also have to get certifications and licenses. Coincidentally, a trusted financial advisor can help you with this too.

5. Get Bonded and Insured to Protect Yourself from Liability

Prior to accepting new clients, you need to get your Christmas light installation business bonded and insured to protect yourself from liability.

When your business is bonded, you’re protecting yourself from paying for your employees’ accidents.

For example, if someone steals or damages property while on the job, then your insurance is responsible.

Also, since it’s dangerous to install Christmas lights on roofs, your insurance protects you and your clients from a lawsuit where an employee gets injured on the job.

For these reasons, insurance and bonding is an essential peace of mind that protects you from liability. In addition, it ensures you can successfully do business for many years to come.

Also, if you’re worried about covering the extra cost of insurance and bonding, then consider raising your Christmas light installation prices to cover it.

BONUS: Protect Your Christmas Light Business With the Best Software

Unfortunately, there will be times where a pesky client attempts to debate their contract terms. Even worse, they might try to say they never signed it in the first place.

Using the best software, you can obtain an electronic signature from your clients - protecting your Christmas light business from legal implications.

When you use Service Autopilot, you can get an electronic signature, IP address, and time the contract was signed - all via email.

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(and with Less Stress)​

Instant invoicing

Better scheduling

Manage your clients and employees all in one system

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Start a Christmas Light Business That’s Legal from the Start

Even though starting a Christmas light installation business might seem complicated at first, when you use these strategies, you can easily simplify the process.

When you start a Christmas light business that’s legal from the start, everything else has the ability to fall into place:

  • Use your business name to capture the right clients
  • Ensure your finances are sound using the right accountant
  • Make sure your employees are legally employed in your business
  • Prevent businesses from stealing your name by properly registering it
  • Protect yourself and your business from potentially being financially liable
  • Use the best field service software to protect your Christmas light business

At last, you have everything you need to know how to start a Christmas light business that’s legal from the very beginning.

Now, you have the power to start a Christmas light business that’s successful for many years to come!


Related: How to Transition from Lawn Care to a Christmas Light Business


Originally published Aug 12, 2021 12:46 PM

Alyssa Sanders

Alyssa is a Content Marketing Specialist II at Service Autopilot. Her bookworming began after she discovered the Harry Potter series. Her love of books evolved into writing and creating content. When she's not writing, you can find her watching a new sci-fi series or shoving her nose into a book.
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