Transportation · LLC guide · updated
How to start an LLC for a drone services business
Drone pilots shoot real estate listings, inspect roofs and towers, map construction sites and film events. A drone that hits a person, a car or a roof makes a claim against whoever flew it for pay. Client contracts, aviation insurance and FAA records are cleanest in an LLC's name.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- Part 107 certificate
- FAA registration
- Remote ID
- Aviation liability
Drone Services Business businesses in the U.S.
Source: FAA, By the Numbers dashboard, checked .
Why drone services business owners form an LLC
Property damage
A crash into a roof, car or window during a job is the most common claim.
Privacy complaints
Filming over neighbors' yards can bring privacy and trespass complaints under state law.
Deliverables disputes
Clients disputing mapping accuracy or missed shots go after the business that signed the contract.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a drone services business
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- Aviation liability
Most clients ask for $1 million. Regular general liability policies usually exclude aircraft.
- Hull coverage
Covers the drone and camera.
- Professional liability
For mapping, survey and inspection work where clients rely on your data.
Taxes
- Equipment write-offs
Drones, cameras, batteries and software are business equipment; most small owners can expense them in the year bought.
- Sales tax on photos
Some states tax the sale of photos or video as tangible goods. Check your state revenue department.
FAA registration can be in the company's name. Put drones, software subscriptions and the LAANC account under the LLC, so the business owns the gear and the records if you add pilots later.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a drone services business LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need an LLC to fly drones for money?
No, but you need a Part 107 certificate. The LLC helps you sign contracts, buy aviation insurance and keep a crash claim away from your personal assets.
Can my LLC hold the FAA certificate?
No. The Part 107 certificate belongs to the pilot. The drones can be registered to the company, and the company hires certified pilots.
What does it cost to start a drone business?
Your state's LLC fee, the $175 FAA knowledge test, $5 per drone for registration, Remote ID equipment if needed, and aviation insurance.
Can I fly near an airport for a job?
Only with an airspace authorization, usually through LAANC, which is often approved in near real time for many airports.
How much does it cost to form an LLC for a drone services business?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my drone services business?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Drone Services Business LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.