How to start a firewood business: from log to profit

Starting a firewood business blends outdoor work with steady seasonal demand from homeowners, fire-pit buyers, and restaurants that cook over wood. Demand holds because firewood remains a primary or supplemental heat source in much of the United States, and the startup cost sits far below most retail businesses. Success comes down to sourcing logs cheaply, seasoning wood to the right moisture level, and pricing each cord so fuel, insurance, and equipment wear stay covered.

How much does it cost to start a firewood business?

Startup costs run $7,000 to $15,000, with a used truck as the largest expense and a 20-ton log splitter as the second. The exact total depends on whether you already own a vehicle and whether you buy equipment new or used.

Understand your local market before you spend. Check Facebook Marketplace and Craigslist to see what a cord of seasoned hardwood sells for in your area. Prices can range from $250 to over $500 depending on location and wood type. Map out three local competitors on Google Maps by searching "firewood for sale" and note their prices, delivery options, and wood types. This gives you a baseline to compete against and confirms whether your area can support another seller.

Your initial investment covers equipment and licensing. A reliable used truck is often the largest expense. Budget for a professional-grade chainsaw ($400 to $800) and a 20-ton hydraulic log splitter, which costs around $1,500 new. Buying an underpowered splitter to save money upfront slows production and eats the savings in lost output, especially in dense hardwoods like oak and hickory.

Here are 3 immediate steps to take:

• Research current firewood prices on at least two local online marketplaces.
• Create a spreadsheet to list and total your estimated equipment and licensing costs.
• Identify and map out three local competitors and their service areas.

What licenses do you need to sell firewood?

You need an LLC registered with your state, a free federal Employer Identification Number, a state seller's permit, and a local business license. Firewood operators who cross state or county lines may also need to follow local quarantine rules that restrict moving untreated wood.

Form a Limited Liability Company, or LLC, to protect personal assets like your home if the business faces a lawsuit. Many new owners operate as a sole proprietorship, a choice that leaves their personal finances exposed if something goes wrong. An LLC also keeps taxes simple: by default, the IRS treats a single-member LLC as a disregarded entity, so profits pass through to your personal tax return rather than being taxed at the corporate level. Source: IRS, Limited Liability Company (LLC). This pass-through treatment avoids the double taxation that C-Corporations face.

Register your LLC with your state's Secretary of State. State filing fees range from about $35 in Montana to $500 in Massachusetts, so check your specific state. Then get a free Employer Identification Number, or EIN, from the IRS. You will also need a seller's permit from your state's Department of Revenue to collect sales tax. For a broader walkthrough of how to start your own business, including naming and tax ID steps, JIM's guide covers each requirement in order.

Contact your local city or county clerk for a general business license. Also check with your state's Department of Agriculture. The federal domestic quarantine for Emerald Ash Borer ended in 2021, but some states and counties still restrict moving untreated firewood to slow the spread of invasive pests. Source: USDA APHIS, Emerald Ash Borer. Buy local or certified heat-treated firewood if you plan to sell across boundaries.

Here are 4 immediate steps to take:

• Decide on a business name and check its availability on your Secretary of State's website.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• Contact your city or county clerk's office to ask about a general business license.
• Check your state's Department of Agriculture website for any firewood transport regulations.

How do you insure a firewood business?

General liability, commercial auto, and workers' compensation are the core policies. General liability covers property damage or customer injuries, commercial auto covers delivery vehicles, and workers' compensation is legally required in most states once you hire anyone.

General liability insurance is your first line of defense. It covers property damage or customer injuries. A $1 million policy for a small business typically runs from $400 to $900 per year, depending on risk factors like location and claims history. This protects you if a stack of wood falls and damages a client's home.

Your personal auto policy will not cover business deliveries. You need a commercial auto policy. Many new owners skip this and find themselves uninsured after an accident. This coverage might cost between $1,500 and $3,000 annually, depending on your truck and driving record.

If you hire anyone, even part-time, you must have workers' compensation insurance. Also consider an inland marine policy. This is not for boats, it protects your equipment like chainsaws and splitters while in transit or on a job site.

Get quotes from providers that work with small businesses. Companies like The Hartford, Next Insurance, and Progressive Commercial are good places to start. Always get at least three quotes to compare coverage and price before you decide.

Here are 4 immediate steps to take:

• Get a quote for a $1 million general liability policy.
• Contact your current auto insurer to confirm business use is excluded from your personal policy.
• List your equipment and its replacement cost for an inland marine insurance quote.
• Ask each potential insurer if they have experience with businesses in the trades.

Where do you set up a firewood processing yard?

You need at least a half-acre, about 22,000 square feet, for log piles, a splitting area, and covered storage for seasoned wood. Look for properties zoned for light industrial or agricultural use.

Before you commit to a spot, call your local planning department. Confirm that a firewood business is a permitted use for that specific property. Some new owners get stuck with a lease on land where they cannot legally operate, so this call is important.

Your primary equipment includes a professional-grade chainsaw and a log splitter. A quality chainsaw from a brand like Stihl or Husqvarna will run you $400 to $800. You will also want a moisture meter, which costs about $50, to prove your wood is properly seasoned.

For the splitter, a 20-ton hydraulic model is a good starting point and costs around $1,500. Buying an underpowered model to save money upfront slows production and hurts profits more than the initial savings helps.

Here are 4 immediate steps to take:

• Call your local planning department to ask about zoning for outdoor wood processing.
• Research prices for a 20-ton log splitter from two different retailers.
• Identify one or two potential commercial properties for lease in your area.
• Buy a moisture meter to test wood dryness.

How do you accept payments selling firewood?

Most firewood sales are cash on delivery, but accepting cards increases sales because customers carrying less cash can still buy on the spot. Plan to accept cash, credit, and debit cards from the start, and compare transaction fees closely since they directly cut your margin.

A common mistake is overlooking transaction fees, which eat into your profits. Many payment solutions charge between 2.5% and 3.5% per sale. You will want a solution with clear pricing and portability for making sales on delivery routes.

For a firewood business that needs to accept payments on-site or on the go, a flat-rate Tap to Pay app keeps costs predictable with no hardware to buy. JIM turns your smartphone into a contactless card reader so you can accept debit, credit, and digital wallets on delivery. At 1.99% per Tap to Pay sale with no hidden costs or extra hardware, it costs less than the 2.5% to 3.5% many traditional processors charge. You can learn more about how flat-rate processing compares in this guide to credit card processing for small business.

The setup is straightforward:

• Get started: Download the JIM app for iOS.
• Make a sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access funds: Your money is available right on your JIM card as soon as the sale is done, with no waiting for bank transfers.

Here are 3 immediate steps to take:

• Decide which payment methods you will accept.
• Compare the transaction fees of at least two mobile payment solutions.
• Download the JIM app to explore its features for your business.

How do you fund a firewood business?

Personal savings and small loans are the main funding routes. The SBA Microloan program offers up to $50,000 through intermediary lenders and is friendly to new businesses, while equipment financing can cover your truck or log splitter.

You can fund your business with personal savings, but loans are a practical route. The SBA Microloan program offers loans up to $50,000 and is friendly to new businesses. Source: SBA Microloans.

For equipment loans, lenders often look for a credit score above 650. Interest rates commonly range from 7% to 15%, depending on your credit and the lender. If your business is in a rural area, look into USDA Rural Business Development Grants. Note that these grants go to public bodies, nonprofits, and federally recognized tribes, not to for-profit businesses or individuals, so they support community projects rather than direct startup funding. Source: USDA Rural Business Development Grants.

Once you have funding for equipment, you need cash for daily operations. Plan to have at least six months of working capital. A realistic reserve for a new firewood business falls between $6,000 and $10,000, not the $3,000 to $5,000 many guides suggest. That lower figure cannot cover six months of commercial auto insurance alone ($1,500 to $3,000 per year), plus fuel, equipment maintenance, and marketing. Your working capital provides a safety net to handle surprises like a major truck repair without taking on new debt or stopping deliveries.

Here are 4 immediate steps to take:

• Calculate your estimated operating costs for the first six months.
• Check your personal credit score to see where you stand for loan applications.
• Research one SBA-approved lender in your state.
• Visit the USDA website to check the eligibility rules for rural business grants.

How do you hire and run firewood operations?

Once you consistently sell over 15 cords a month, it is time to hire your first employee. Your first hire will likely be a Yard Hand or Delivery Driver who can help with splitting, stacking, and deliveries, with hourly wages typically between $18 and $25.

A mistake some owners make is hiring someone without a clear job description. This often leads to confusion. Write down the exact duties, hours, and pay before you post the job. This sets clear expectations from day one and protects both you and your employee.

Your new hire will need a valid driver's license for deliveries. While formal chainsaw certification is not always legally required, providing safety training is a good idea. You can find excellent chainsaw safety guides on the OSHA logging eTool to build your training program. Source: OSHA Logging eTool.

For daily tasks and deliveries, a simple whiteboard or a shared Google Calendar works well at the start. As your business grows to multiple employees and dozens of weekly deliveries, you can explore field service software like Jobber to manage schedules and routes more efficiently.

Here are 4 immediate steps to take:

• Write a one-page job description for a Yard Hand/Delivery Driver.
• Research the average hourly wage for general labor in your specific area.
• Bookmark the OSHA logging safety page for your training material.
• Create a shared Google Calendar to schedule your first month of deliveries.

How do you market a firewood business?

List your firewood on Facebook Marketplace and Craigslist, set up a free Google Business Profile, and post flyers at local feed and hardware stores. These free channels reach most local buyers before you spend anything on ads.

Your first move should be to list your firewood on Facebook Marketplace and Craigslist. These platforms are where most local customers search. A common mistake is to post blurry photos. Use clear, well-lit pictures of your neatly stacked wood to stand out and build trust immediately.

Set up a free Google Business Profile. This gets your business on Google Maps when people search "firewood near me." It can take a few weeks for your listing to get verified and start appearing, so do this early. Include your phone number, service area, and photos.

You can also use simple, old-school marketing. Design a basic flyer with your business name, phone number, and price per cord. Post it on community boards at local feed stores, hardware shops, and grocery stores. This targets customers who may not be active online.

Many new owners wait for customers to find them. A more proactive approach is to run targeted ads. A $50 boosted post on Facebook can reach thousands of homeowners in your specific zip codes. This small investment can generate your first few sales within a week.

Here are 4 immediate steps to take:

• Create a listing on Facebook Marketplace with clear photos and your delivery radius.
• Set up your Google Business Profile and complete all the information fields.
• Design and print 50 simple flyers to distribute at local businesses.
• Contact one local tree service company to ask about customer referrals.

How do you price a cord of firewood?

Price each cord to cover logs, fuel, equipment maintenance, and delivery, then aim for a gross profit margin of 50% to 70%. A cord is a stacked volume of 128 cubic feet, and dense hardwoods like oak and maple command a higher price than softer woods like pine because they deliver more heat per cord.

Most firewood is sold by the cord, which is a stacked volume of 128 cubic feet. You should also offer smaller quantities like a half-cord or face-cord to attract customers with different needs. Consider selling small, wrapped bundles for about $5 to $10 at local stores for extra revenue.

A frequent mistake is to only calculate the cost of the logs. Your price must cover all expenses, including fuel, equipment maintenance, and delivery. If you forget these, you might find you are not making any money. Aim for a gross profit margin between 50% and 70%.

For example, if your total cost to produce and deliver one cord is $150, a price of $300 gives you a 50% margin. You can adjust this based on wood type. Dense hardwoods like oak and maple carry more heat per cord than softwoods like pine, so they command a higher price.

Source: Utah State University Forestry Extension, Wood Heating. Heat values vary by subspecies and growing conditions.

Check what competitors on Facebook Marketplace and Craigslist charge for a delivered cord. You can price your wood slightly lower to attract your first customers. Or, if your wood is properly seasoned to below 20% moisture, you can justify a premium price.

You might also want to create a tiered pricing structure. For instance, offer a 10% discount on orders of two or more cords. This encourages larger sales and can secure loyal customers who stock up for the winter. Clearly state your delivery fees or if delivery is included.

Here are 4 immediate steps to take:

• Calculate your total cost to produce and deliver one cord of seasoned hardwood.
• Set your final price for a full cord, a half-cord, and a small bundle.
• Research the delivery fees and service areas of three local competitors.
• Decide on a discount strategy for customers who buy multiple cords.

Is a firewood business profitable?

Yes, when each cord is priced to cover its full cost. A realistic year-one operation selling 50 cords at $300 each produces $15,000 in revenue and a net profit near $6,800 once equipment, insurance, fuel, and supplies are accounted for.

Profitability depends on covering every cost per cord, not just the logs. The worked example below models a modest first year where a solo operator sells 50 cords at $300 each, which sits inside the $250 to $500 market range.

These figures are illustrative and assume a solo operator who already owns a truck and splitter. Your costs will differ by region, log source, and whether you hire help. The point is to price each cord so the margin stays above 50% after every expense.

How do you maintain quality and scale firewood operations?

Keep moisture content below 20% on every batch and hold a standard log length, typically 16 inches. Consistent sales above 30 cords a month signal it is time to scale, which usually means a second truck or a larger splitter, but only after you secure a reliable log supply.

Your reputation depends on consistent quality. The industry standard for seasoned firewood is a moisture content below 20%, measured on a freshly split face with a moisture meter. Source: EPA Burn Wise, Best Wood-Burning Practices. Also decide on a standard log length, typically 16 inches, and stick to it.

As orders increase, it is easy to let quality slide. A bad batch of wet wood can ruin your reputation. If you plan to sell across state or county lines, look into USDA heat treatment certification. This allows you to legally transport wood through areas with local quarantine rules.

Growth should be deliberate. Once you consistently sell over 30 cords a month, it is time to consider expansion. This could mean a second delivery truck or upgrading from a 20-ton splitter to a 30-ton model for more efficiency.

A mistake some owners make is expanding too quickly without a reliable log supply. Before you buy new equipment, secure contracts with multiple tree services or loggers. As you add staff, you can use software like Jobber to manage schedules and routes without the chaos.

Here are 4 immediate steps to take:

• Define your standard log length and check a sample batch for consistency.
• Test three different spots on a split log with your moisture meter to confirm it's under 20%.
• Identify a secondary log supplier to support future growth.
• Set a monthly sales goal that will trigger your next equipment upgrade.

Deliver dry, well-cut logs consistently and your customers return each season. When that first delivery sale comes in, a flat-rate Tap to Pay app keeps checkout simple on the route. JIM turns your phone into a card reader with a flat 1.99% fee and no extra hardware. Download JIM to be ready for business.