How to Start a Landscaping Business in Illinois (2026)

Last updated: February 25, 2026

Starting a landscaping business in Illinois doesn’t require a state contractor license, but if you plan to apply any pesticides for hire, you’ll need a Commercial Applicator License from the Illinois Department of Agriculture. Illinois also has strict workers’ comp rules that kick in with your very first employee, and stormwater permits may apply for larger projects.

This guide covers every requirement, cost, and step to legally start and operate a landscaping business in Illinois, from basic lawn care through full-service landscape installation.

Landscaping Business Requirements in Illinois at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	IL Secretary of State	$150	Several weeks (mail) or 4-5 days (online + $100)
Federal EIN	IRS	Free	Immediate (online)
Commercial Pesticide Applicator License	IL Dept. of Agriculture	$300 (3-year license)	2-4 weeks after exam
State Landscaping License	N/A	Not required (no statewide license)	–
Local Business License	City/village clerk	Varies ($50-$500)	1-2 weeks
General Liability Insurance	Commercial insurer	$500-$2,000/year	Same day
Workers’ Comp (any employees)	Commercial insurer	Varies by payroll	Same day
NPDES Stormwater Permit (1+ acre disturbance)	Illinois EPA	Varies	Before land disturbance

How to Start a Landscaping Business in Illinois (Step by Step)

Step 1: Form Your Illinois LLC

File Articles of Organization with the Illinois Secretary of State ($150 by mail, $250 online expedited). Then get your free EIN from the IRS.

Annual Report: $75/year, due on the first day of your LLC’s anniversary month.

Step 2: Get Your Pesticide Applicator License

If you plan to apply any pesticides for hire (including weed killers, insecticides, fungicides, or herbicides), you need a Commercial Applicator License from the Illinois Department of Agriculture.

Item	Detail
License type	Commercial Applicator
Relevant categories	Turf Pest Control and/or Ornamental Pest Control
License fee	$300 for 3-year license
Exam	50-question category exam; passing score = 35/50
Training	University of Illinois PSEP offers in-person and online training
Insurance required	Certificate of insurance must accompany application
Operator registration	Each business must have at least one licensed applicator per facility location

Important: Even applying general-use pesticides for hire requires licensure. If you only apply fertilizer (no pesticides), no license is required under state law, but check local ordinances.

Training resources: University of Illinois PSEP – Commercial Licensing

Step 3: Get Insurance

General Liability Insurance

• Average cost: $500-$2,000/year depending on services and revenue
• Typical coverage: $1M per occurrence / $2M aggregate
• Covers: Property damage, bodily injury, and personal injury claims
• Required by: Most commercial clients and municipalities for permit applications

Workers’ Compensation Insurance

• Required for ANY employees – Illinois has no minimum employee threshold
• Landscaping is higher-risk work, so expect higher premiums than office jobs
• Penalties: Up to $500/day, minimum $10,000 fine
• Sole proprietors and LLC members can exempt themselves

Commercial Auto Insurance

• Required for business vehicles (trucks, trailers)
• Cost: $1,500-$4,000/year depending on vehicles and coverage

Step 4: Get Local Business Licenses

Illinois has no statewide landscaping license. Get a local business license from each city or village where you operate. Some municipalities may have specific requirements for landscaping companies, including noise ordinances and operating hour restrictions.

Step 5: Understand Environmental Permits

For larger landscape installation or hardscape projects:

• NPDES Stormwater Permit: Required from the Illinois EPA for construction/land disturbance of 1 acre or more
• Erosion and Sediment Control: Must implement Best Management Practices (BMPs) during construction
• Chemical disposal: Follow Illinois EPA guidelines for proper disposal of pesticide containers and unused chemicals

Step 6: Handle Employer Requirements (If Hiring)

• Register for unemployment insurance with IDES through MyTax Illinois within 30 days
• Register for income tax withholding through MyTax Illinois
• Complete Form I-9 for every employee
• Report new hires to IDES within 20 days

Cost to Start a Landscaping Business in Illinois

Solo Lawn Care / Basic Landscaping

Item	Cost	Notes
LLC Formation	$150	One-time
Federal EIN	Free	Online at IRS.gov
Local Business License	$50-$300	Annual
Annual Report (SOS)	$75	Annual
Pesticide Applicator License	$300	3-year license (if applying pesticides)
General Liability Insurance	$500-$1,200/year	Recommended
Equipment (mower, trimmer, blower)	$2,000-$8,000	Commercial grade
Truck/Trailer	$5,000-$20,000	Used truck + open trailer
Commercial Auto Insurance	$1,500-$3,000/year	Required for business vehicles
Marketing / Website	$300-$1,500	Optional at start
Estimated total: $9,875-$34,575

Full-Service Landscaping (1-5 Employees)

Item	Cost	Notes
LLC Formation + EIN	$150	One-time
Local Business License(s)	$50-$500	Annual
Annual Report (SOS)	$75	Annual
Pesticide Applicator License	$300	3-year license
General Liability Insurance	$1,000-$2,000/year	Required by commercial clients
Workers’ Comp Insurance	$2,000-$8,000/year	Required with any employees
Commercial Equipment	$10,000-$40,000	Zero-turn mowers, skid steers, etc.
Trucks & Trailers	$15,000-$50,000	Fleet vehicles
Commercial Auto Insurance	$3,000-$6,000/year	Multiple vehicles
Marketing / Website / Uniforms	$1,000-$5,000	Professional presence
Estimated total: $32,575-$111,575

Related Illinois Business Guides

• Starting a Business in Illinois: Complete Guide

← Back to all Illinois business guides

Frequently Asked Questions

Do I need a license to start a landscaping business in Illinois?

Illinois does not require a statewide landscaping contractor license. However, if you apply any pesticides for hire (including weed killers and insecticides), you need a Commercial Applicator License from the Illinois Department of Agriculture ($300 for 3 years). You’ll also need local business licenses.

What is the pesticide applicator license exam like?

The exam is a 50-question multiple-choice test for each category (Turf Pest Control and/or Ornamental Pest Control). You need a score of 35/50 to pass. The University of Illinois PSEP program offers in-person and online training to prepare for the exam.

Do I need workers’ comp for landscaping employees in Illinois?

Yes. Illinois requires workers’ comp for any employer with even one employee. Landscaping is considered higher-risk work, so premiums are typically higher than for office jobs. Penalties for non-compliance include up to $500/day with a minimum $10,000 fine.

Do I need a stormwater permit for landscaping work?

Only for projects that disturb 1 acre or more of land. You’ll need an NPDES stormwater permit from the Illinois EPA and must implement erosion and sediment control Best Management Practices (BMPs). Routine lawn care and small garden installations don’t require this permit.

How much does it cost to start a landscaping business in Illinois?

A solo lawn care business can launch for approximately $9,875-$34,575, with the largest costs being equipment and a truck/trailer. A full-service operation with employees typically costs $32,575-$111,575 due to additional equipment, insurance, and vehicles.

Can I apply fertilizer without a pesticide license in Illinois?

Yes. If you only apply fertilizer (no pesticides, herbicides, insecticides, or fungicides), you do not need a Commercial Applicator License under state law. However, check local ordinances as some municipalities have additional requirements for fertilizer application, especially near waterways.