How to Start a Junk Removal Business
Junk removal is a simple service with strong demand: people moving, cleaning out a house, renovating or managing rental turnovers will pay to have it gone today. The business runs on a truck, a strong back, good disposal accounts and a phone that rings.
Get your junk removal business planFree numbers first · $49 for the full planThis guide covers the launch steps, with federal data on the industry and the same cost model our plans use.
The junk removal business industry in numbers
Businesses with employees in this Census category average $5,946,463 a year, but the category includes large waste-hauling companies, so it is not a target for a new small business.
How to start a junk removal business, step by step
Pick your customers
Homeowners and estate cleanouts, property managers and realtors, and contractors each find you differently and buy differently. Choose the first group to focus your marketing.
Price by volume, and know your dump fees
Most operators price by the fraction of the truck a job fills. Disposal fees vary by site and material, so know what your local landfill and transfer station charge before you quote.
Set up disposal, donation and recycling
Open accounts at disposal sites and find donation centers and recyclers for furniture, metal and electronics. Diverting items lowers your dump costs and gives customers a reason to choose you.
Get the right truck
A dump truck or box truck sized for your typical job is the biggest startup cost. Check whether its weight requires additional registration or a USDOT number if you will cross state lines.
Register, permit and insure
Form your business entity, get a federal EIN, and check whether your city or county requires a hauler or waste-transport permit. Commercial auto and general liability insurance are essential.
Write the plan
Your plan shows jobs per day, average price per job and the break-even point, which is what a lender will look for.
Market where people are getting rid of things
Moving companies, realtors, property managers and online local listings are the main sources. Fast quotes and same-day service win jobs.
Hire a helper early
Most junk jobs are two-person work for safety and speed. Budget for a helper from the start.
What it costs to open
Our worked example comes to $56,152; real budgets typically run $32,000–$90,000. Each line shows the range we found in published prices and cost data — see every source. Replace each with your own quotes in the calculator below.
| Item | Our example | Typical range |
|---|---|---|
| Box or dump truck (used) | $35,000 | $15,000–$55,000 |
| Dollies, straps, tarps and tools | $1,000 | $300–$1,500 |
| Truck wrap and signage | $3,000 | $2,000–$7,000 |
| LLC filing and registered agent, first year | $350 | $134–$749 |
| Licenses and permits budget (confirm with your city and county) | $500 | $59–$500 |
| Logo, website and printed materials | $800 | $238–$1,038 |
| Working capital: 3 months of fixed costs and wages | $15,502 | computed |
| Total to open | $56,152 | $32,000–$90,000 |
Running costs and break-even
With these assumptions, costs that rise with sales take about 30% of revenue, and fixed costs, wages and an example loan payment come to $6,019 a month. That puts break-even at about $8,599 in monthly sales — roughly 1.3 jobs per working day.
| Fixed monthly cost | Typical |
|---|---|
| Insurance (commercial auto, liability) | $350 |
| Marketing and lead listings | $600 |
| Phone, booking and invoicing software | $80 |
| Truck maintenance and registration | $250 |
Licenses and permits to line up
Requirements and fees differ by state, county and city. Confirm each item with your local offices before you sign a lease or buy equipment.
- Business license from your city or county
- Business registration with your Secretary of State, plus a federal EIN
- Hauler or waste-transport permit where your city or county requires one
- Disposal-site accounts and rules for what each landfill or transfer station accepts
- Commercial auto and general liability insurance
- USDOT number if your truck is over 10,001 lbs and crosses state lines
Where junk removal businesses are concentrated
States ranked by employer junk removal businesses per 100,000 residents (2023). A high count means proven demand — and more competition for the best locations and customers.
| State | Businesses | Per 100k | Wage / hr |
|---|---|---|---|
| 1. New Hampshire | 102 | 7.2 | $20.45 |
| 2. South Dakota | 67 | 7.2 | $19.85 |
| 3. Maine | 97 | 6.9 | $20.69 |
| 4. Vermont | 45 | 6.9 | $19.68 |
| 5. North Dakota | 53 | 6.7 | $22.07 |
| 6. Nebraska | 123 | 6.1 | $20.60 |
| 7. Rhode Island | 64 | 5.8 | $21.01 |
| 8. Iowa | 176 | 5.4 | $20.92 |
| 9. Wyoming | 32 | 5.4 | $19.88 |
| 10. Minnesota | 279 | 4.8 | $22.56 |
| 11. West Virginia | 80 | 4.5 | $18.50 |
| 12. Alaska | 33 | 4.5 | $24.31 |
Show all 51 states
| State | Businesses | Per 100k | Wage / hr |
|---|---|---|---|
| 1. New Hampshire | 102 | 7.2 | $20.45 |
| 2. South Dakota | 67 | 7.2 | $19.85 |
| 3. Maine | 97 | 6.9 | $20.69 |
| 4. Vermont | 45 | 6.9 | $19.68 |
| 5. North Dakota | 53 | 6.7 | $22.07 |
| 6. Nebraska | 123 | 6.1 | $20.60 |
| 7. Rhode Island | 64 | 5.8 | $21.01 |
| 8. Iowa | 176 | 5.4 | $20.92 |
| 9. Wyoming | 32 | 5.4 | $19.88 |
| 10. Minnesota | 279 | 4.8 | $22.56 |
| 11. West Virginia | 80 | 4.5 | $18.50 |
| 12. Alaska | 33 | 4.5 | $24.31 |
| 13. Missouri | 272 | 4.4 | $19.80 |
| 14. Connecticut | 160 | 4.4 | $21.31 |
| 15. Kansas | 126 | 4.2 | $19.86 |
| 16. Pennsylvania | 540 | 4.1 | $20.74 |
| 17. Arkansas | 128 | 4.1 | $17.66 |
| 18. Colorado | 247 | 4.1 | $22.05 |
| 19. Oregon | 173 | 4 | $21.99 |
| 20. Massachusetts | 273 | 3.8 | $22.00 |
| 21. Indiana | 252 | 3.6 | $20.12 |
| 22. Montana | 41 | 3.6 | $20.52 |
| 23. North Carolina | 393 | 3.6 | $18.94 |
| 24. Ohio | 421 | 3.5 | $19.71 |
| 25. South Carolina | 191 | 3.5 | $18.82 |
| 26. Tennessee | 251 | 3.5 | $19.24 |
| 27. Wisconsin | 208 | 3.5 | $21.19 |
| 28. Maryland | 210 | 3.4 | $20.67 |
| 29. Mississippi | 99 | 3.4 | $17.87 |
| 30. Hawaii | 48 | 3.3 | $22.91 |
| 31. New Jersey | 313 | 3.3 | $20.45 |
| 32. New Mexico | 71 | 3.3 | $18.74 |
| 33. Georgia | 361 | 3.2 | $19.45 |
| 34. Idaho | 65 | 3.2 | $19.62 |
| 35. Kentucky | 146 | 3.2 | $20.17 |
| 36. Louisiana | 145 | 3.2 | $17.17 |
| 37. Oklahoma | 131 | 3.2 | $18.17 |
| 38. Delaware | 33 | 3.1 | $19.11 |
| 39. Illinois | 389 | 3.1 | $20.66 |
| 40. Utah | 106 | 3 | $20.54 |
| 41. Michigan | 296 | 2.9 | $19.82 |
| 42. New York | 576 | 2.9 | $22.21 |
| 43. Washington | 229 | 2.9 | $22.92 |
| 44. Virginia | 239 | 2.7 | $20.35 |
| 45. Alabama | 139 | 2.7 | $18.02 |
| 46. Arizona | 201 | 2.7 | $21.25 |
| 47. Florida | 576 | 2.5 | $19.36 |
| 48. Texas | 786 | 2.5 | $18.94 |
| 49. Nevada | 77 | 2.4 | $20.77 |
| 50. California | 907 | 2.3 | $21.92 |
| 51. District of Columbia | 12 | 1.7 | $23.68 |
“—” means the Census Bureau did not publish the figure for that state, usually to protect the confidentiality of individual businesses.
Run the numbers for your town
Pick your city to see local competitors, average sales and wages, and your own startup cost and break-even.
Questions
How much does it cost to start a junk removal business?
With typical starting assumptions — a used box or dump truck, tools, a wrap and registration — opening comes to about $56,152, including a cash reserve. The truck is most of it.
How much do junk removal businesses make?
It depends on jobs per day and your average price after disposal costs. The Census does not publish a figure for junk removal alone — it is grouped with waste collection, which includes large haulers — so your plan builds revenue from your own price and volume instead.
What do helpers earn?
The mean hourly wage for laborers and freight, stock, and material movers, hand was $20.32 nationally in the Bureau of Labor Statistics’ 2025 data. Your local rate is in your plan.
Do I need a permit to haul junk?
Some cities and counties require a hauler or waste-transport permit, and disposal sites have rules about what they accept. Check with your city, county and the sites you will use.
Is junk removal profitable?
It can be, if your price per job covers disposal fees, fuel and labor with room to spare. Your plan shows the margin at your own prices before you buy a truck.
Main Street Plans is not affiliated with the SBA or any government agency. This guide is general information, not legal or tax advice.
Sources
- U.S. Census Bureau, County Business Patterns 2023 and 2019 — NAICS 562111 (Solid Waste Collection).
- U.S. Census Bureau, 2022 Economic Census — receipts, payroll and employment, NAICS 562111.
- U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025 — Laborers and Freight, Stock, and Material Movers, Hand.
- U.S. Census Bureau, population estimates (2024).
- Federal Reserve, bank prime loan rate (via FRED), for the example loan.
Figures are computed by Main Street Plans from the published federal files listed above. See how we build our numbers.