How to Start a Plumbing Business in 2025: Complete Guide

Starting a plumbing business can be one of the most rewarding career moves you make. With the right preparation, you can build a profitable business that serves your community for decades.

Step 1: Get Licensed and Certified

Before you can legally operate a plumbing business, you need the proper credentials:

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

Step 2: Get Insured

Insurance protects you and your customers:

• General Liability: Covers property damage and injuries ($1-2M recommended)
• Workers Compensation: Required if you have employees
• Commercial Auto: For your work vehicles
• Tools & Equipment: Covers your tools if stolen or damaged

Expect to pay $2,000-$5,000 annually for basic coverage.

Step 3: Set Up Your Business Structure

Choose the right structure for your situation:

• Sole Proprietorship: Simplest, but personal liability
• LLC: Protects personal assets, flexible taxation
• S-Corp: Tax advantages once profitable

Most plumbers start as an LLC for the liability protection.

Step 4: Buy Essential Equipment

Start with the basics and grow from there:

Must-Haves

• Pipe wrenches (various sizes)
• Pipe cutters and threaders
• Drain cleaning equipment
• Soldering equipment
• Inspection camera
• Work van or truck

Budget: $10,000-$25,000 for a basic setup

Step 5: Set Your Pricing

Research local rates and set competitive prices:

• Service call fee: $75-$150
• Hourly rate: $75-$200/hour
• Flat-rate pricing: Consider for common jobs

Pro tip: Flat-rate pricing is easier for customers to understand and can increase your average ticket.

Step 6: Get Your First Customers

Marketing strategies that work for plumbers:

1. Google Business Profile - Essential for local search
2. Nextdoor - Great for neighborhood referrals
3. Home service platforms - Angi, Thumbtack, HomeAdvisor
4. Referral program - Reward customers who refer friends
5. Vehicle wrap - Mobile billboard in your service area

Step 7: Use the Right Software

Modern plumbing businesses run on software:

• Scheduling: Book jobs and dispatch techs
• Invoicing: Send professional invoices instantly
• CRM: Track customer history and follow-ups
• Online Booking: Let customers book 24/7

Business Genie combines all these features in one mobile-first platform built specifically for plumbers.

Common Mistakes to Avoid

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

How Much Can You Make?

Plumbing business income varies widely:

• Solo plumber: $50,000-$100,000/year
• Small team (2-3): $150,000-$300,000/year
• Established business: $500,000+/year

Your income depends on your market, pricing, and how efficiently you run operations.

Ready to Start?

Starting a plumbing business takes planning, but the rewards are worth it. Focus on quality work, fair pricing, and great customer service.

Business Genie helps new plumbing businesses look professional from day one with online booking, instant invoicing, and automated follow-ups. Start your free trial today.