How to Start a Plumber Business
Going out on your own as a plumber, from the license your state and city require to the first service call you bill.
This guide covers setting up a plumbing business of your own: licensing checks, registering, tax IDs and insurance, taking the first service calls and sending the first invoice. Pricing calls, parts markup and emergency rates are on the plumber invoicing guide linked below.
On licensing, the BLS plumbers, pipefitters, and steamfitters profile (In the US, last modified October 29, 2026) says "Most states and some localities require plumbers to be licensed." It also says "Most plumbers, pipefitters, and steamfitters learn on the job through an apprenticeship." Ask your state's plumbing board and your city or county which license your work needs.
A first service-call invoice with sample figures: water heater replacement labor of 3 hours x $95.00 = $285.00 and a 40-gallon water heater at 1 x $650.00 come to $285.00 + $650.00 = $935.00 before any tax.
Step-by-step startup guide
Follow these steps to launch your plumber business on solid footing.
- 1
Confirm your license
The BLS plumbers, pipefitters, and steamfitters profile (In the US, last modified October 29, 2026) says "Most states and some localities require plumbers to be licensed." Ask your state's plumbing board which license you need to work for your own customers, and check your city's or county's rules too.
- 2
Decide on your service mix
Repairs, installs, drain work or new construction each change your tools, your van stock and the customers you go after.
- 3
Register and get an EIN
The SBA's launch guide (In the US, SBA, checked October 31, 2026) says "Your Employer Identification Number (EIN) is your business’s federal tax ID number." The IRS EIN page (In the US, IRS, last reviewed or updated October 16, 2026) says "You never have to pay a fee for an EIN."
- 4
Arrange insurance
The SBA's launch guide (In the US, SBA, checked October 31, 2026) says "You also may be legally required to purchase certain types of business insurance." An insurance agent can go over cover for work inside customers' homes.
- 5
Check permits for each job
The SBA's launch guide (In the US, SBA, checked October 31, 2026) says "Local governments determine registration, licensing, and permitting requirements, so visit local government websites to find out what you need to do."
- 6
Quote, do the work, then invoice
Give a written price before you start, and invoice labor and parts as separate lines when the job is done.
Tips for starting your plumber business
- Set your hours with care. The BLS plumbers, pipefitters, and steamfitters profile (In the US, last modified October 29, 2026) says "Self-employed plumbers may be able to set their own schedules."
- Keep the supplier receipt for every part you put on an invoice.
- Photograph the work before you close up a wall or a floor.
- Keep a share of every payment for tax. The IRS self-employment tax page (In the US, IRS, last reviewed or updated October 30, 2026) says "The self-employment tax rate is 15.3%."
How Billed helps you get started
Features to look at as you set up your business.
Customize Estimates
Billed's features page says: "Customize your estimates according to your needs."
Attach Receipts
Billed's features page says: "Never lose a single receipt again."
Record Offline Payments
Billed's features page says: "Record offline payments easily with Billed App payment management."
Defaulter Customers
Billed's features page says: "See who owes you money and send them payment reminders to get paid."
Frequently asked questions
More Startup Guides
Invoice Your First Service Call
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Step | What to check | Source |
|---|---|---|
| License | State plumbing board and city or county | BLS (In the US, last modified October 29, 2026) |
| Permits | Local rules for each job | SBA (In the US, checked October 31, 2026) |
| Tax ID | An EIN, at no fee | IRS (In the US, last reviewed or updated October 16, 2026) |
| First invoice | Labor hours and parts as separate lines | Plumber invoicing guide |
When this isn't for you
If you're an apprentice or work for another plumbing company, these steps are for later, once you go out on your own.