How to start a plumbing business in 2025: Complete guide

To run a plumbing business legally you need three credentials: a journeyman or master plumber license (most states require 2 to 5 years of apprenticeship and a state exam), a registered business with a local license and an EIN, and in many states a separate contractor license. Check your state licensing board for the details:

Journeyman or Master Plumber License

• Most states require 2–5 years of apprenticeship
• Pass a state licensing exam
• Some states have reciprocity agreements

Business License

• Register your business with your state
• Get a local business license from your city/county
• Apply for an EIN from the IRS

Contractor License

• Many states require a separate contractor license
• May require proof of experience and insurance
• Check your state's requirements at your licensing board

Plan on $2,000 to $5,000 a year for basic plumbing business insurance: general liability ($1 to 2 million of coverage is recommended), commercial auto for your work vehicles, tools and equipment coverage, and workers' compensation once you have employees.

Most plumbers start as an LLC, which protects personal assets and keeps taxes flexible. A sole proprietorship is simpler but leaves you personally liable, and an S-Corp can bring tax advantages once the business is profitable.

Budget $10,000 to $25,000 for a basic plumbing setup: pipe wrenches in several sizes, pipe cutters and threaders, drain cleaning and soldering equipment, an inspection camera, and a work van or truck. Start with the basics and add tools as the work demands them.

Set prices from your costs and your local market: plumbers commonly charge a $75 to $150 service call fee and $75 to $200 an hour, and flat-rate pricing for common jobs is easier for customers to understand. How to price plumbing services walks through the math.

A new plumbing business finds its first customers through a Google Business Profile, Nextdoor, home service platforms such as Angi, Thumbtack and HomeAdvisor, a referral program that rewards customers who send friends, and a vehicle wrap that advertises across your service area.

Plumbing businesses run the work on field service software: scheduling and dispatching techs, sending invoices, tracking customer history and follow-ups, and letting customers book online at any hour. Business Genie for plumbers does all four in one app, with route optimization on every plan.

1. Underpricing your services - Know your costs and charge accordingly
2. No written contracts - Always get it in writing
3. Ignoring online reviews - Reputation is everything
4. Not tracking expenses - Keep detailed records from day one
5. Trying to do everything yourself - Hire help when needed