How to Start a Home Renovation Business

How to Start a Home Renovation Business
  • Opening Intro -

    If you are growing tired of the typical 9-to-5, or just want to be your own employer, you may be interested in starting your own business.


However, some businesses are more accessible to start than others. With a home renovation business, you need to be sure that you and/or your staff and contractors are licensed to carry out the work.

While this is not an all-inclusive guide, this post should give you an idea of how to go about setting yourself up as a home renovation company and the paperwork you will need to begin working on people’s homes.

Contractors Licenses

Firstly, if you’re operating in the USA, you should know that different states require different qualifications and licenses to allow you to work legally.

Luckily, for fields like construction, there are organizations like Contractor Training Center that are dedicated to helping you pass the exams so that you can seamlessly get your company off of the ground. Be sure to scan their site to know which licenses you need to work in your state.

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Do I Need Federal, State, and Local Licenses?

Depending on where you live, this answer can vary. There are different requirements in place on state and local levels. However, federal provisions remain consistent throughout the U.S. Check in your local area to ensure you’re not breaking any laws.

Once you find out what licenses you need to acquire, you can begin the process of applying for them. As you go through this process, you will need to:

  • Know the states, cities, and counties where you plan to operate
  • Find out your business’s specific code
  • Pay a filing fee, which often ranges anywhere between $50 and $400
  • Find out your company’s Federal Tax ID Number (EIN)
  • Possibly get fingerprinted (depending on your state and company type)

The application process will vary depending on where you live, but these are some general steps you’ll have to take, no matter where you will be conducting your operations.

What Happens If I Do Not Obtain a License?

If you do not obtain a business license, your company may:

Become liable for significant penalties or damages

  • Need to pay a hefty fine
  • Suffer from a tarnished reputation
  • Become temporarily suspended or permanently shut down
  • Not have the protection of federal, state, or local ordinances

In severe circumstances, you may even become liable for significant damages.

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Decide on Your Specialism

Now that all the legal stuff is out of the way, the fun part can begin. Think about your strengths as a builder, contractor, or home designer. Do you want to specialize in renovating kitchens, bathrooms, building home extensions, or all of these?

Sit down with your business partner or team and discuss what you’re most capable of. Do you have good relationships with local plumbers to fit bathrooms, or do you have a permanent plumber on your team? Are you best at designing and executing loft conversions and conservatories?

Having a specialism is a good way to market yourself in a crowded industry. You want to be the first company people think of when they want a kitchen remodel, outdoor decking, or a new bathroom. Decide what your team is best at and go from there. You can always gain new qualifications and expand your business later.

other valuable tips:

Make Sure You Set Up Your Business Properly

To remain in good legal and ethical standing and avoid missing out on profits, you need to make sure you set up your company correctly.

Most companies require, at the minimum, general licensing for income-reporting purposes. Due to the nature of building and contract work, you need to obtain more intricate licensing.

Never start a company without ensuring you have the right permits – having these means you’ll always be operating legally, and consumers will trust you to carry out their work.

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Image credit: home renovation business by Pixabay

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