Trades and home services · LLC guide · updated
How to start an LLC for a plumbing business
A failed joint or water heater can flood a house. Water damage claims are some of the most common and expensive claims against trades, and they often show up weeks later. An LLC holds the license, vans and service agreements so those claims are the company's.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- Plumbing contractor license
- Master plumber
- Permits
- Backflow cert
Plumbing Business businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 238220) and U.S. Census Bureau, Nonemployer Statistics 2022 (NAICS 23822), the latest U.S. totals.
Why plumbing business owners form an LLC
Water damage
Leaks and floods are the claims plumbers see most.
Gas line work
Gas leaks can bring fire and explosion claims.
Crew injuries
Lifting, trenching and confined spaces bring workers' comp claims.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a plumbing business
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- General liability
Make sure water damage is not excluded.
- Workers' compensation
Required with employees in nearly every state.
- Commercial auto and tools
Covers service vans and equipment.
Taxes
- Service agreements
Prepaid maintenance plans are often income as the service is delivered; ask a CPA how to book them.
- Sales tax on parts
Some states tax parts and fixtures you supply; others treat you as the end consumer. Check your state.
If the license depends on one master plumber, cover in the operating agreement what happens if that person leaves or sells their share.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a plumbing business LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Does my plumbing LLC need its own license?
Most states license the contractor business through a master plumber, separate from each plumber's individual license.
What insurance should a plumbing company carry?
General liability that covers water damage, workers' comp, commercial auto and tools. Some customers and GCs ask for higher limits.
Should I elect S corporation tax treatment?
Often once profit is steady and higher than a reasonable salary for your role. A CPA can compare the savings to payroll costs.
Can one LLC do plumbing and HVAC?
Yes, if it holds both licenses. Many companies combine plumbing, heating and air conditioning.
How much does it cost to form an LLC for a plumbing business?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my plumbing business?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
Related industries
Ready when you are
Have us file your Plumbing Business LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.