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Plumbing is one of the most dependable trades to build a business in, but it is also one of the most regulated. You cannot skip the licence, and that shapes every other step, from your budget to when you can take your first job.
This guide walks through the steps in order, what a plumbing startup really costs, the licences, bonds and insurance you need, and what a solo plumbing business owner can realistically earn.
Published guides put a typical plumbing startup at $10,000 to $50,000, and a lean one at about $5,000 if you already have a vehicle and basic tools. The biggest cost is not money but time: the licence takes years.
Once you are licensed, a solo owner in our model earns about $50,400 at 6 jobs a week and $93,600 at 9, before income tax.
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How to start a plumbing business: 8 stepsLicences, bonds and insuranceHow much does it cost to start a plumbing business?How much do plumbing business owners make?FAQ
How to start a plumbing business: 8 steps
Follow these in order. The first two decide whether you can legally operate, so do not spend on a van before you have them clear.
1. Get licensed. Work through apprentice, journeyman and master levels and pass your state exams. This usually takes several years.
2. Choose your niche. Service and repair work, such as drains and water heaters, is the usual starting point for a solo owner. New-construction rough-in is bid competitively and tends to run thinner margins.
3. Register the business. Most plumbers form an LLC and get a free EIN from the IRS. Open a separate business bank account.
4. Get your contractor licence and bond. Many states require a plumbing contractor licence and a surety bond before you can take work under a company name. See the next section for what that involves.
5. Get insured. Start with general liability, add commercial auto for your van and tools cover, and add workers’ compensation when you hire.
6. Buy your van and tools. A clean used cargo van usually beats a new one whose payment eats your margin every month.
7. Price your jobs. Set your hourly rate and service call fee from your real costs. Our plumber hourly rate guide has the numbers and a free calculator.
8. Win your first customers. Claim your Google Business Profile and ask every customer for a review. Build relationships with property managers, realtors and landlords who need repeat work.
Licences, bonds and insurance
Plumbing is a licensed trade almost everywhere. Most states require a journeyman licence to work independently, which typically means two to five years of supervised work plus an exam, and a master plumber licence is a further step.
To run a business, many states require a master plumber, or a licensed master plumber of record, plus a plumbing contractor licence. Texas, for example, requires every plumbing company to designate a Responsible Master Plumber, and California requires a $25,000 bond for licensed contractors.
A contractor bond typically costs $300 to $800 a year, depending on the bond amount and your credit. Plan on $2,000 to $5,000 for first-year insurance covering liability, your van and tools.
Rules differ by state and city, so confirm them with your state plumbing board before you spend any money on a van or tools.
How much does it cost to start a plumbing business?
Published guides range from about $5,000 to $60,000 because the van and tools vary so much. Here are typical line items.
Your total depends on how much you already own. Most solo plumbers land in one of three tiers.
Many plumbers start with less by buying specialty tools gradually and financing the van. Software for quotes and invoices is a small cost, and our best plumbing software roundup compares the options.
How much do plumbing business owners make?
The US Bureau of Labor Statistics reports a median wage of $63,800 for plumbers, pipefitters and steamfitters in May 2025. Published estimates for solo plumbing owners run from about $50,000 to $100,000 a year, and larger shops earn more.
For a one-truck owner, pay is what is left after parts and overhead. The model uses a $400 average ticket, parts at 25% of revenue, $3,000 a month of overhead and 48 working weeks.
These are pay figures before income tax and before repaying any startup loan. Using the same model, an owner needs about 7 jobs a week to match the median plumber wage of $63,800.
Published net profit margins for plumbing companies are lower, typically 5% to 12% with 15% to 20% counted as strong, because they include owner pay and payroll. Track what each job really earns in the free Job Profit Tracker.
Our free Job Pricing Calculator prices any job with labour, materials and overhead folded in, and exports a branded PDF quote you can send from the van.
FAQ
How do I start a plumbing business?
Get licensed through the apprentice, journeyman and master path, then register the business, get your contractor licence and bond, buy insurance, equip a van and price your jobs. The licence usually takes years, so it is the first step rather than the last.
How much does it cost to start a plumbing business?
Published guides put a typical startup at $10,000 to $50,000, and a lean one at about $5,000 if you already own a vehicle and tools. A full first-year budget including working capital can reach $25,000 to $60,000.
Do I need a licence to start a plumbing business?
In most states, yes. You typically need a journeyman licence to work independently, and many states require a master plumber or a licensed master of record plus a contractor licence to run a company.
Can I start a plumbing business without being a plumber?
In some states, if a licensed master plumber is the licence holder of record for your company. In many places you cannot do plumbing work yourself without a licence, so check your state plumbing board first.
How much do plumbing business owners make?
Published estimates for solo owners run from about $50,000 to $100,000 a year. In our model, a $400 average ticket and 9 jobs a week leaves about $93,600 before income tax.
What insurance does a plumbing business need?
General liability is the baseline, plus commercial auto for your van, tools cover and a contractor bond where required. Plan on $2,000 to $5,000 for first-year insurance, and add workers’ compensation when you hire.
How long does it take to start a plumbing business?
If you already hold the right licence, a few weeks to register, insure and equip. Getting licensed first typically takes two to five years of supervised work to reach journeyman, with more time for master.
How much should a plumber charge?
Standard residential plumbing runs $75 to $150 an hour, plus a service call fee of $75 to $150. See our plumber hourly rate guide for rates by licence level and a free calculator.
How we researched this: startup costs are cross-checked across several 2026 plumbing startup guides, and licence rules vary by state and city. Wage data comes from the US Bureau of Labor Statistics (May 2025). Owner income estimates disagree widely, so the table on this page is an illustration with stated assumptions, and you should confirm licence rules with your state board.
Last verified: October 2026.
Plumbing Business Guide
Pricing, software and finding your first clients as a solo plumber.