How to Start a Nursery Business

In late 2024, after eight years in the wholesale nursery industry, I decided to start a new company brokering the sales of trees and shrubs around the country.  A large part of my motivation is to create a legacy for my kids.  In that same spirit, it’s occurred to me that there may be other aspiring entrepreneurs out there who might be interested in starting a brokerage, so I figured I’d leave behind a very brief roadmap of the steps I’ve taken so far and the steps I plan to take going forward.

Please make sure to do your own research.  Requirements change over time and are different from state to state.  I’m not a lawyer nor an expert in the right way to set up a business.

Scared to start? If I can do it, you can too!

How did I get started and what did it cost?   

Oregon Business License: $100

The first thing I needed was to establish the company with the State of Oregon, where I’m operating.  I filed for a Business License with the Secretary of State.  It only cost $100 and I was able to apply online through their portal.  Processing time was very quick. 

There were several options to choose from like Sole Proprietor, LLC, Corporation, etc.  I decided to set the business up as an LLC which stands for Limited Liability Company.  Basically, this protects my personal assets (home, car, savings, investments, etc.) in the event that my business was in jeopardy.  It’s a safe way to go but does not help much with taxes, which I’ll get into shortly.  At this point, I’m able to conduct business according to Oregon but cannot sell more than $250.00 worth of nursery stock.  For that, I’d need a Nursery Broker License. 

Oregon Nursery Dealers License: $158

This license allows me to sell cut flowers, Christmas trees, and nursery stock.  There are limits to the nursery broker license.  It doesn’t allow me to propagate material or grow it for more than a single year. It is however required for selling in the state of Oregon. At this point, we’re now in business as a nursery dealer but I need to go through a couple more steps to be able to file taxes or get a bank account.

Certificate of Existence, Employee Identification Number: $0

An EIN is like a Social Security Number except for a business.  This information is required to file taxes and start a business bank account.  It’s also required to file as an S-Corp which can be advantageous when it comes to tax season.  The EIN is always free on the federal IRS website.  I was able to register online with immediate results.  It was quite convenient.

Business Checking & Savings Account: $105

At this point, the business was officially operating and I had all the required documentation prepared to set up a bank account with a local credit union.  I did spend some time choosing the right institution.  I visited two banks and two credit unions before settling on my favorite choice.  The only costs required for setting up the bank account were $100 in the checking account and $5 for the savings.  Unfortunately, I didn’t bring a debit card so there was a $10 processing fee for using the credit card.  Well worth it, when you consider the time I’d invested in visiting them.

Beneficial Ownership Information Report: $0

This particular step is highly controversial and at the time of this article it is not required.  The BOI filing was required under the Corporate Transparency Act which mandated that certain types of US and foreign entities report who benefits from ownership.  It is considered by many to be an unconstitutional invasion of privacy. As of January, 2025, this was no longer required after the Fifth Circuit Court of Appeals reversed their own ruling and removed any liability from companies who refused to submit an ROI.

I would like to reiterate the warning above that everyone must do their own research when getting into business. 

File as an “S-Corp”: $0

I was advised to file with the IRS as an “S-Corp” because it has some tax advantages when it comes to my business.  I suppose the only advice I would give for this portion is that you begin with the end in mind.  I was able to mail in my Form 2553 to the IRS within 60 days of filing for my LLC and they handled the rest on their end.

Closing & Costs: $363

Overall, the whole process took a couple hours of diligence and cost only $363.  It could seem complicated or intimidating if you’ve never done something similar before.  One concern I had at the beginning was that I was working with a limited timetable.  To avoid analysis paralysis and make sure I hit a good stride, I began by making a rough checklist of tasks to complete. 

Breaking the overall project into small, manageable tasks enabled me to make progress around my already busy schedule of work, wife, kids, etc.  I was able to spend a small amount of time before work, after dinner, or before bed.  Pretty soon, everything was up and running.  I was able to focus on getting the website setup and get to work securing vendors to work with. 

I hope this little article was helpful in learning how to start a nursery business.  Please let me know if you have any questions or suggestions to help others.  Thanks so much!