How to Start a Plumbing Business in 2026: Complete Guide
Step-by-step guide to starting your own plumbing business. Covers licensing, insurance, tools, marketing, and how to get your first customers.
How to Start a Plumbing Business in 2026: Complete Guide
Plumbing is one of the most profitable trades to start a business in. The demand is constant—pipes will always leak, drains will always clog, and water heaters will always fail.
Average plumbing business owner income: $75,000-$150,000/year (source: Bureau of Labor Statistics)
This guide walks you through everything you need to start your plumbing business the right way.
Step 1: Get Licensed
Licensing Requirements (Vary by State)
Most states require:
- Journeyman experience: 2-5 years working under a licensed plumber
- Master plumber license: Additional 2-4 years as journeyman (required in some states)
- Contractor license exam: Business and trade knowledge test
- Background check: Clean criminal record
Pro tip: Check your state's contractor licensing board website for exact requirements.
Common License Types
| License | Requirements | Allows |
|---|---|---|
| Journeyman | 2-5 years apprentice | Work under master |
| Master | 2-4 years journeyman | Supervise, pull permits |
| Contractor | Master + exam | Own business, bid jobs |
Step 2: Register Your Business
- Sole proprietorship (simplest)
- LLC (recommended—liability protection)
- S-Corp (best for higher income)
- File LLC/Corp paperwork
- Get EIN from IRS (free)
- Register for state taxes
- Separate personal and business finances
- Required for LLC protection
Step 3: Get Insurance
Required insurance:
- General liability: $500,000-$1M minimum ($500-$1,500/year)
- Workers comp: Required if you have employees
- Commercial auto: For your work vehicle
Recommended:
- Tools/equipment coverage: Protects your investment
- Umbrella policy: Extra liability protection
Step 4: Buy Essential Tools and Equipment
Minimum Startup Kit ($5,000-$10,000)
Hand tools:
- Pipe wrenches (multiple sizes)
- Basin wrench
- Tubing cutter
- Plungers and augers
- Adjustable wrenches
- Screwdrivers, pliers, channel locks
Power tools:
- Drill/driver
- Reciprocating saw
- Drain machine
Diagnostic:
- Inspection camera
- Leak detector
Vehicle ($10,000-$40,000)
- Used cargo van: $10,000-$20,000
- New cargo van: $30,000-$40,000
- Consider leasing to preserve cash
Step 5: Set Your Prices
Pricing Models
Hourly rate: $75-$150/hour (varies by market)
- Pros: Simple, fair for complex jobs
- Cons: Customers dislike uncertainty
Flat rate: Fixed price per job type
- Pros: Customers prefer it, higher margins
- Cons: Requires experience to price accurately
Sample Flat Rate Pricing
| Service | Price Range |
|---|---|
| Unclog drain | $150-$300 |
| Fix leaky faucet | $150-$250 |
| Replace water heater | $1,200-$2,500 |
| Repipe bathroom | $2,000-$4,000 |
Step 6: Market Your Business
Free/Low-Cost Marketing
- Critical for local search
- Get reviews from day one
- Hyperlocal recommendations
- Business page is free
- Local community groups
- Before/after photos
Paid Marketing (When Ready)
- Google Local Service Ads: Pay per lead ($20-$50/lead)
- Google Ads: Pay per click ($5-$30/click)
- HomeAdvisor/Thumbtack: Pay per lead ($15-$75/lead)
Step 7: Get Your First Customers
Week 1-4 Strategy
Referral System
Offer $50 referral bonus to anyone who sends you a customer. Word of mouth is the cheapest, highest-quality lead source.
Step 8: Set Up Systems
Phone System
Never miss a call. Options:
- Call forwarding: Free, but you must answer
- Answering service: $200-$500/month
- AI service (Fixly): $1/booking, 24/7 coverage
Set up Fixly →
Invoicing/Payments
- Square or Stripe for card payments
- QuickBooks or Wave for invoicing
Scheduling
- Google Calendar (free)
- Jobber or Housecall Pro ($50-$200/month)
Startup Cost Summary
| Category | Minimum | Comfortable |
|---|---|---|
| Licensing/permits | $500 | $1,000 |
| Insurance | $1,500 | $3,000 |
| Tools | $5,000 | $10,000 |
| Vehicle | $10,000 | $25,000 |
| Marketing | $500 | $2,000 |
| Software/systems | $200 | $500 |
| Total | $17,700 | $41,500 |
Timeline to First Revenue
| Week | Milestone |
|---|---|
| 1 | Register LLC, get insurance quotes |
| 2 | Open bank account, buy initial tools |
| 3 | Set up Google Business Profile, systems |
| 4 | First marketing, tell your network |
| 5-8 | First paying customers |
Common Mistakes to Avoid
Next Steps
The plumbing industry is not going anywhere. Start today, and you will be building a profitable business within months.
Frequently Asked Questions
How much does it cost to start a plumbing business?
Startup costs typically range from $10,000 to $50,000 depending on your location, whether you buy or lease a vehicle, and tool inventory. Minimum viable: $10,000-$15,000.
Do I need a license to start a plumbing business?
Yes. Most states require a plumbing contractor license. Requirements vary but typically include journeyman experience (2-5 years), passing an exam, and proof of insurance.
How long does it take to start a plumbing business?
If you already have your journeyman/master license: 2-4 weeks. If you need to get licensed first: 6-12 months depending on state requirements.
Related Articles
How to Get More Plumbing Leads in 2026: 15 Proven Strategies
Stop buying expensive leads. Learn 15 proven strategies to generate more plumbing leads including Google Business Profile optimization, local SEO, referrals, and modern AI tools.
Best CRM for Plumbers in 2026: Top 7 Options Compared
Compare the top CRM software for plumbing businesses. Detailed reviews of Housecall Pro, Jobber, ServiceTitan, and more. Find the right fit for your plumbing company.
Plumber Answering Service: Never Miss an Emergency Call Again
Plumbing emergencies happen 24/7. Learn how answering services help plumbers capture emergency calls, book more jobs, and grow their business.
Ready to Stop Missing Calls?
Fixly answers your calls, books jobs into Google Calendar, and sends follow-ups. Free to start. Pay only when it works.