How To Start An Electrical Company In Texas

How to Start an Electrical Business In Texas

Here is some information on how to register and start an electrical business in the state of Texas.  Make sure you do your own thorough research, as laws change regularly.  Here are some steps you may have to take (not necessarily in order) to start your own business as an electrician, along with links to more information.   
The state of Texas has a website for those wanting to start a business:

1. Register your electrical business name.

Find out more about registering a fictitious name in Texas here:

If you need help selecting a name for your electrical business:  Choosing a Business Name and Electrical Company Name Ideas

2. Select a business structure for your electrical company.

Sole-proprietor, LLC, Partnership, Corporation, etc.  Find out more on business entities here:

3.  Register your electrician business.

You can register your electrical business with the state of Texas here:

4. Open a Business Checking Account.

You will need to open a separate bank account for your electrical business with your new business name.

5. Research taxes- hire an accountant.

You may possibly want to talk to an accountant for help in figuring out deductions and other tax laws. More information about taxes in the state of Texas here: and .

6.  Liability Insurance.

Find an insurance agent that offers liability insurance.  Make sure you specify what types of jobs you plan to do as an electrician, as this can affect the pricing structure you are offered.  You may want to shop around, as prices and options can vary.

7. Worker’s Compensation.

The insurance agency that provided your liability insurance should be able to help with this.  You don’t need to worry about worker’s compensation unless you have employees.start an electrical business in Texas

8. Get Health Insurance.

Since you will be self-employed, you will need your own health insurance.  If you want to have employees, you will need to consider offering a  health plan for them also.

9. City License.

You may be required to obtain a license to operate your electrical business in a particular locale, whether you are a resident, or not.  You may need to be certified as an electrician.

11. Permits.

Depending on the locale, you may need to apply for permits before commencing certain types of electrical jobs.

12. Building Code and Inspections.

You must be aware of building codes for your particular job, and may be subject to inspections.

13. OSHA.

Depending on how many employees you have, you may need to follow OSHA regulations.

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