How to start a dog boarding business (kennel or pet resort)

The owner playbook for opening a boarding kennel or pet resort: what your state and city license, how to lay out the runs, who covers overnight, what insurance follows the dogs, and how software, pricing and marketing fill the books.

Boarding kennels are exempt from Animal Welfare Act licensing, with exceptions

Federal licensing

APHIS exemption

APHIS: intermediate-handler registration for kennels that ship animals on public carriers, or receive them during or after shipment

Shipping dogs by carrier

Register first

Taxable in New York and South Dakota; Texas: Comptroller guidance says nontaxable

Sales tax on boarding

Varies by state

Where a state or city requires vaccine proof, that governs; AAHA's core list added leptospirosis in 2024

Vaccination policy

Yours, within local rules

A dog boarding business — a kennel or pet resort — stands or falls on six decisions: licensing, the building and its runs, overnight coverage, insurance, software and pricing, and marketing. This guide works through each from the operator's seat. It names the agency behind every rule, and tells you where to confirm it for your own state, city and building.

Licenses and inspections

Start with the federal picture, because it is shorter than new kennel owners expect.

The Animal Welfare Act regulates defined categories — dealers, exhibitors, research facilities, intermediate handlers and carriers — and boarding, grooming, daycare, walking and pet sitting are not among them.

USDA APHIS, the agency that administers the act, says so plainly: anyone housing animals for others, boarding kennels included, is exempt from AWA licensing, except for intermediate handlers and holding facilities.

Two federal exceptions are worth knowing before they surprise you.

APHIS requires a boarding kennel that takes responsibility for shipping animals on public carriers, or receiving them during or after shipment, to register as an intermediate handler.

And anyone hired to transport animals to and from pet stores, veterinary offices and the like — a paid pet taxi — must register as an AWA carrier, so a shuttle service changes your federal paperwork.

Exempt from the AWA is not exempt from everything else.

Kennel and facility licensing is state law where states have it, and business licenses, permits and zoning are local matters — the SBA notes zoning is controlled locally and can apply even to a home-based business.

So the license question has no national answer to read off a page.

Confirm what applies to your address with your state agriculture department, your city hall and your county before you sign a lease or order kennels.

Inspections follow the license: the agency that issues yours sets what its inspectors check and how often.

Ask for the inspection checklist and the care standards it enforces when you first call, and build to those standards rather than to a checklist you found online.

Rules change, and they differ by state.

Confirm the current requirements with your state agriculture department and your city or county before you open.

Facility and runs

The building is the product.

Run count and size, indoor and outdoor access, drainage, ventilation and noise separation decide how many dogs you can care for well, how fast your staff can clean between stays, and what the neighbors hear at night.

Plan the flow before the furniture: an intake area that separates arrivals from residents, wards that let you house small dogs apart from large ones and anxious dogs apart from playgroups, and a quiet ward for seniors.

Draw the cleaning loop too — runs that drain, surfaces that disinfect, and a path from intake to ward to yard that never crosses the dirty flow.

Where a state sets housing, space or exercise standards for kennels, those standards govern the floor plan, not the other way around.

Get them from the agency that licenses you before you draw the layout.

Accessibility is federal law for businesses open to the public.

The ADA treats businesses that provide goods or services to the public as public accommodations.

Existing facilities must remove architectural barriers when removal is readily achievable — the ADA's phrase for easily accomplishable without much difficulty or expense.

New construction must be accessible to and usable by people with disabilities, small businesses included.

In a kennel, the entry, lobby, restrooms and parking are the natural starting points.

Your intake policy finishes the facility design, because it decides who each run accepts.

Vaccination requirements are your own policy within whatever your state and city require.

New York City's Health Code, for example, requires boarding kennels to obtain veterinary proof of rabies, distemper, adenovirus, parainfluenza, parvovirus and Bordetella vaccination before service.

For the rest, AAHA's canine vaccination guidelines give you the reference list: core vaccines for all dogs are distemper, adenovirus, parvovirus (with or without parainfluenza), leptospira and rabies, while Bordetella, canine influenza and Lyme are risk-based, non-core vaccines.

AAHA updated those guidelines in 2024 to make leptospirosis a core vaccine for all dogs, so intake forms written before then may be out of date.

Set the final list — and the temperament screening behind it — with your veterinarian's input, and keep it at the front desk where check-in actually happens.

Staffing and overnight care

Overnight coverage is what separates boarding from daycare: the dogs are on your premises while the town sleeps.

Decide the model before you accept the first booking — staff on site through the night, or an on-call schedule with set overnight checks — and write the emergency plan with it.

The emergency plan names who drives to the emergency veterinarian, who holds the keys and alarm codes, and how and when an owner gets called.

Put it in writing, because the version of it that lives in one person's head quits with them.

The core hire is a kennel attendant: feeding, walking, cleaning and disinfecting, laundry, and the quiet observation that catches a dog who is off before it becomes an emergency.

Add playgroup staff if you sell day stays, and a manager once the schedule outgrows you.

Candidates see these jobs from the other side — the kennel attendant job listings show what the market advertises against before you write your own ad.

Our research found no national staffing ratio to scale the floor from, and where a state sets care standards, they govern.

Colorado's PACFA rules, for example, require facilities that commingle dogs from different households to get written owner consent first.

They set at least one human supervisor aged 16 or older for every 15 dogs commingled in each common area.

Camera or window viewing does not count as supervision, and neither does a staff member busy grooming.

No more than 60 dogs may share one area.

Ask your own state agriculture department what its rules require of a kennel like yours.

Child labor rules shape who you can hire.

Under federal rules, 16 is the general minimum age for non-farm work.

The occupations DOL permits for 14- and 15-year-olds — office and clerical work, cashiering, selling and similar — name no animal care or kennel work, so attendant jobs are 16-and-up work under federal law.

Whether an individual task fits a listed occupation is a fact question for DOL's Wage and Hour Division, and your state's rules can be stricter.

Write the care protocol before the first check-in: who may restrain a dog, when two dogs get separated, and how medication is handled.

Whether kennel staff may give injections or prescribed medication is not established in our research either way — set your protocol around the owner's written directions and the prescribing veterinarian's, and have counsel review it.

Insurance

Insurance is a purchase the business makes for itself, and a kennel has a pet-specific core.

The SBA lists general liability, professional liability, commercial property and business owner's policies among the types a small business considers.

For boarding, the question that matters is whether the policy follows the dogs in your care.

A coverage designed for exactly this gap is animal bailee coverage.

One insurer's description shows the shape of it.

Pet Care Insurance describes animal bailee coverage as protection when you are legally liable for injury or damage to an animal in your care, custody or control.

It says the coverage is included in every one of its base policies.

That is one insurer's product description — carriers differ, so compare the wording, not the brochure.

For a price anchor, PCI's advertised starting price for kennel policies was $26.10 a month as of October 2026.

That is one insurer's advertised starting price, not a market average — premiums vary by state, by limits and by add-ons.

Staff on payroll bring workers' compensation into the picture, and that is state law.

DOL's Office of Workers' Compensation Programs publishes a directory of state workers' compensation agencies.

Texas lets private employers choose whether to carry coverage in most cases.

Florida requires non-construction employers — grooming salons and kennels among them — to carry it at four or more employees, counting corporate-officer and LLC-member owners.

Confirm your state's threshold with its workers' compensation agency before your first hire starts.

Close the loop with a licensed agent who writes pet care accounts.

Bring them the intake policy, the transport plans and the overnight staffing model, and let them quote the gaps against what the building actually does.

Software and pricing

Kennel software runs the operation: multi-night bookings and capacity, vaccination records at intake, feeding and medication logs the overnight staff work from, billing and deposits, and the report an owner reads when they collect their dog.

Set the software up before you set the price — it is what gives you the real unit costs and the booking data your rate has to clear.

Price from your costs and your market, not from a number you read.

Building or leasing, labor — which the overnight coverage model drives — food, utilities, insurance and software all land on a nightly rate.

Our research found no verified nightly-rate, occupancy or margin benchmark for boarding businesses, so build the rate from your own costs and your own market, and revisit it as the books fill.

Whether boarding is taxable is state law, and the states our research verified show the range.

New York's tax department lists boarding among taxable services, along with grooming and clipping except when provided as a necessary part of veterinary medicine.

Services to guide, hearing or service dogs are exempt.

South Dakota's revenue department fact sheet, dated October 2023, states that animal boarding services are subject to state sales tax.

Texas runs the other way.

Its Comptroller has stated that dog boarding and dog training are not subject to Texas sales tax, while a separately stated dog grooming charge is taxable.

That is a 1993 letter, not a statute — treat it as guidance and ask before you rely on it.

So register with your state revenue department before you charge the first bill, ask how your state treats boarding and any grooming add-on you sell, and check for local add-on rates.

A CPA closes the gap between what you collect and what you file.

Marketing

Owners board dogs with the business they trust, so marketing a kennel is trust-building at local range.

Start with what an owner checks before the first call: a website that answers rates, requirements and hours and takes booking requests.

Add a complete profile on the platforms owners search, and photos of your own runs — clean, lit, the wards and yards as they are.

Referrals compound in this trade.

Veterinarians, groomers, daycares, trainers and shelters meet exactly the owners who need overnight care, so introduce the business before you need the favor, and give existing clients a reason to bring the next booking.

Reviews do the same work in public — ask departing owners for one, and answer the critical ones with the fix, not the defense.

Advertise into capacity, not ahead of it.

Every booking the marketing wins has to land on a staffed, licensed run, so set the budget from the bookings your building and crew can absorb — your software's booking data tells you when to push and when to hold.

And answer the overnight question plainly in the marketing itself, because who is watching the dogs, and what happens in an emergency, is the trust question a boarding business sells.

More employer and owner guides — hiring, pay plans, handbooks and the rest of the start-up set — live on the GroomerHires hiring hub.

Owner information, not legal, tax, insurance or veterinary advice. Every rule above has an agency behind it — USDA APHIS, your state agriculture department, your city or county, your state revenue department, your state workers' compensation agency, DOL. Rules change, so confirm with the one that administers yours before you open, hire or charge.

Before the first dog checks in

  • Confirm your state's kennel or facility licensing with the state agriculture department, and ask for the inspection checklist and care standards.
  • Clear the local layer: city or county business license, zoning and building permits, in that order.
  • If you will ship or receive dogs by common carrier, ask APHIS about intermediate-handler registration; paid transport raises carrier registration.
  • Register with the state revenue department and ask how boarding is taxed where you operate.
  • Write the intake policy: vaccination requirements, temperament screening, and owner consent to commingle where your state requires it.
  • Decide the overnight coverage model and the emergency plan before the first booking.
  • Quote insurance with animal bailee coverage included, and confirm your state's workers' compensation threshold.
  • Set up the kennel software, then set nightly rates from your own costs and market.

Questions employers ask

Do you need a license to board dogs?

Not a federal one for ordinary boarding: USDA APHIS states that anyone housing animals for others — boarding kennels included — is exempt from Animal Welfare Act licensing, except for intermediate handlers and holding facilities. What applies instead is state and local: kennel or facility licensing where your state has it, plus business licenses, zoning and permits from your city and county. Confirm with your state agriculture department and your city hall before you open.

Does a boarding kennel have to register with the USDA?

Only in specific cases. APHIS requires a boarding kennel that takes responsibility for shipping animals on public carriers, or receiving them during or after shipment, to register as an intermediate handler. Anyone hired to transport animals to and from pet stores, veterinary offices and the like — a paid pet taxi — must register as an AWA carrier. A kennel that only houses local dogs does neither.

Is dog boarding subject to sales tax?

It depends on the state, and the verified states split. New York's tax department lists boarding among taxable services. South Dakota's revenue department states animal boarding services are subject to state sales tax (October 2023 fact sheet). Texas's Comptroller has stated that dog boarding and dog training are not subject to Texas sales tax, while a separately stated dog grooming charge is. Register with your state revenue department and confirm your state's treatment before you charge.

What vaccines should a boarding kennel require?

Start with what your state and city require: New York City's Health Code, for example, requires boarding kennels to obtain veterinary proof of rabies, distemper, adenovirus, parainfluenza, parvovirus and Bordetella vaccination before service, so ask the agency that licenses you. Beyond that, the list is the business's own policy. AAHA's canine vaccination guidelines list core vaccines for all dogs — distemper, adenovirus, parvovirus (with or without parainfluenza), leptospira and rabies — with Bordetella, canine influenza and Lyme as risk-based, non-core vaccines. AAHA updated the guidelines in 2024 to make leptospirosis core for all dogs, so intake forms written before then may be out of date. Set the final list with your veterinarian's input.

More hiring resources

Hiring kennel staff for your new boarding business?

Once the license is cleared and the runs are built, the crew that feeds, walks and watches the dogs overnight is the hire that makes it a boarding business. Post your kennel opening on GroomerHires, where kennel attendants, daycare staff and groomers look for their next job.