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How to Start a Junk Removal Business

Junk removal needs a truck or trailer, strong backs and a plan for where everything goes. Disposal fees are your biggest variable cost, so knowing your local landfill, transfer station and recycling and donation options is what makes pricing work.

Reviewed November 5, 2026 · Sources linked inline

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a junk removal cost worksheet →

SBA 7(a) loans in this industry

Solid Waste Collection (NAICS 562111): 365 loans approved in FY2024–FY2026. Median loan $155,000; middle half $50,000–$350,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Solid Waste Collection (NAICS 562111)

Nationwide: 10,982 employer establishments (2023). The Census Bureau doesn’t publish a count of businesses without employees for this industry.

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Dump trailer or truck with a high-sided bed
  • Dollies, hand truck, straps and tarps
  • Gloves, boots, eye protection and dust masks
  • Basic demolition tools for sheds and decks
  • Brooms and shovels for cleanup

Licenses and registration

  • Register the business with your state.
  • Some cities and counties require a permit or registration to haul waste or use their transfer stations — ask your solid-waste department.
  • Hazardous items (paint, chemicals, batteries, electronics, appliances with refrigerant) have special disposal rules; turn them away or learn the proper drop-off.
  • Heavy trucks can trigger CDL and vehicle safety rules; check the weight rating before you buy.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • General liability (property damage during removal)
  • Commercial auto
  • Workers' compensation once you hire
  • Inland marine or equipment coverage for trailers

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Disposal and landfill fees
  • Fuel
  • Truck and trailer maintenance
  • Crew wages
  • Insurance
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them.

Common mistakes

  • Pricing without knowing your disposal cost per load
  • Accepting hazardous items you can't dispose of legally
  • Overloading the truck or trailer
  • No photos before starting a job
  • Skipping donation and recycling options that lower fees

Finding customers

  • Google Business Profile with photos
  • Realtors, property managers and estate-sale companies
  • Contractors who need cleanup
  • Yard signs and truck signage

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources