electrical company

How To Start an Electrical Contractor Company

Tips to start an Electrical Company

Step 1

Obtain education and training from a certified trade school or apprenticeship program. Your state’s department of licensure or local electrical union representative (See Resources) can advise you in training and education requirements in your area.

Step 2
Obtain you state electrician’s license by taking the exam and filing necessary paperwork. Contact your state’s department of licensure for specific information.

Step 3
Create a business plan for your electrical business containing all business details, financial projections, marketing and advertising strategies. Hire a business consultant, visit the U.S. Small Business Administration (See Resources) website or contact your local SCORE field office (See Resources) for help in writing your business plan. A business plan will be required if you will are seeking outside financing from your bank or other lending institution.

Step 4
File your business structure paperwork with your secretary of state. Your business structure may be a sole-proprietorship, limited liability company, partnership or corporation. Your state website will have the necessary forms and instructions, and you will find information on different business structures on the SBA website.

Step 5
Obtain a local business permit from your town hall, state contracting license and tax registration certificate from your state’s taxation and licensing offices, and federal Tax Identification Number and Employer Identification Number from the Internal Revenue Service. The IRS, most states and some local governments have forms and online filing services on their websites.

Step 6
If required), secure financing through a lending company (. You will need your business plan, official business and personal documents as required by the lending company.

Step 7
Purchase your equipment and vehicle with your own funds, or with funds financed through your lending company. Your equipment and vehicle needs will vary according to the scope and type of electrical work you will offer.

Step 8
Purchase business liability insurance from your insurance company. Your insurance agent will advise you as to how much is required in your state, and advise you if additional surety bonding is necessary.

Things Needed to Start Electric Company

Education and training
State electrician’s license
Business plan
Local, state and federal business permits and tax registration certificates
Equipment and vehicle
Liability insurance

Take business and accounting courses at a local continuing education school to learn about running a business.
Consider union affiliation with the International Brotherhood of Electrical Workers. Although not required, some commercial, industrial and government work contracts favor contractors with union affiliation.
Double-check all work areas for cleanliness after jobs are completed, and be sure your vehicles and workers are professional and presentable to help build business credibility and reputation.

Being an electrician in Phoenix can be a dangerous profession. Be certain that you are willing to take the necessary risks and follow all published industry safety procedures.
If you hire licensed electricians, be sure to check their credentials with your state’s licensing board. Allowing unlicensed workers to perform licensed work unsupervised can result in serious fines and penalties for the worker and your business.