How to Start a Roofing Company: Licenses, Insurance, First Jobs

1. Choose a business structure

Your structure decides how you’re taxed and how much of your personal stuff is on the line if a job goes wrong. The SBA puts it plainly: with a sole proprietorship, “you can be held personally liable for the debts and obligations of the business,” while an LLC protects your personal assets “in most instances” (SBA guide to business structures (opens in a new tab)).

That protection is a big reason to look hard at an LLC. But the right choice depends on your taxes and plans, so spend an hour with an accountant or attorney before you file. Then register the business with your state, which is usually done through the Secretary of State’s office.

2. Get an EIN and open a business bank account

An Employer Identification Number is your company’s federal tax ID. The SBA says you’ll need one to pay federal taxes, hire employees, open a bank account, and apply for some licenses and permits (SBA on tax ID numbers (opens in a new tab)).

It’s free. The IRS issues EINs online at no cost and warns people about websites that charge for one: “You never have to pay a fee for an EIN” (IRS EIN page (opens in a new tab)).

Then open a business checking account and run every job through it. The SBA notes that keeping business money separate from personal money gives you some liability protection, and it lets customers write checks to the company instead of to you (SBA on business bank accounts (opens in a new tab)).

3. Find out which licenses you need

The SBA lists construction among the activities commonly regulated at the local level, and says the licenses you need “will depend on your business activities and business location” (SBA on licenses and permits (opens in a new tab)). Some states license roofing contractors directly. Florida, for example, has its Construction Industry Licensing Board issue roofing contractor licenses, with a statewide certified license and a registered license that’s limited to certain local areas (Florida DBPR construction licensing (opens in a new tab)). In other places, more of it is handled by cities and counties, and your town may also require a building permit for a reroof.

4. Buy insurance before your first job

Don’t put a ladder on a customer’s house without it. The SBA says businesses with employees have to carry certain coverage, including workers’ compensation, and that “laws requiring insurance vary by state” (SBA on business insurance (opens in a new tab)).

For a roofer, the usual starting list looks like this:

• General liability: covers things like property damage and injuries to other people. Homeowners, property managers, and general contractors may ask to see a certificate of it.
• Workers’ compensation: once you have employees, and check your state’s rules even if you don’t.
• Commercial auto: for the trucks and trailers the business owns.
• Tools and equipment coverage: for your compressors, nail guns, and ladders.

Talk to a licensed commercial insurance agent who writes policies for roofers. Get a few quotes, since the SBA notes prices and benefits “can vary significantly.”

5. Put safety in writing from day one

OSHA says “falls are the leading cause of death in construction,” and that workers six feet or more above a lower level are at risk of serious injury or death. Its fall prevention campaign comes down to three steps: plan ahead, provide the right equipment, and train everyone to use it (OSHA fall prevention campaign (opens in a new tab)).

For a new roofing company, that means fall protection on the truck before the first job. Write a short safety plan, train every worker on it, and keep a record that you did.

6. Open supplier accounts

Go meet the branch managers at the roofing supply houses near you. A trade account can get you contractor pricing, delivery to the job site, and (once you have some history) terms, so you’re not paying for every bundle up front. Bring your business registration, EIN, license, and insurance certificate.

7. Build your estimating and pricing

This step decides whether the company survives. Price every job from real numbers: materials with waste, labor hours, disposal, permits, equipment, and your overhead (insurance, trucks, phone, software, marketing). Then add profit on top. Profit is not whatever is left over.

Send a written estimate that spells out scope, materials, and what’s excluded. Then track what each job actually cost against what you bid. After ten jobs, you’ll know where your estimates run light.

8. Use written contracts on every job

A handshake deal feels friendly until the homeowner disputes the price or the scope. Use a written contract that covers the work, materials, price, payment schedule, start date, warranty terms, and what happens if you find rotten decking.

If you sign contracts at a customer’s home, federal rules may apply. The FTC’s Cooling-Off Rule covers many sales made at a buyer’s home and gives the buyer until midnight of the third business day to cancel. The seller has to tell the buyer about that right and hand over cancellation forms (FTC on the Cooling-Off Rule (opens in a new tab)).

9. Set up how customers will find you

A new roofer with no online presence is invisible to strangers. Start here:

• Google Business Profile. Set it up as a service-area business. Google says service-area businesses should hide their address from customers, and your business name should match your “real-world name,” with no extra keywords or taglines (Google Business Profile guidelines (opens in a new tab)).
• A simple website. One page per service you offer, a page for each town you want work in, real photos, and a phone-friendly contact form. Our roofing website design page covers what a good one needs.
• Reviews. Ask every customer, starting with job one.

Our guide on roofing keywords shows which searches each page should go after.

10. Land your first jobs

The first jobs often come from people who already know you. Tell friends, family, and old customers from your last company (if your agreement with that company allows it). Take repair work that bigger roofers pass on. Repairs are quick, they build reviews, and a repair customer may call you back when it’s time for a full roof.

Real estate agents, home inspectors, and property managers see a lot of tired roofs. Introduce yourself and make it easy to send you work. Put a yard sign up on every job with the homeowner’s OK.

Our guide on how to get roofing leads goes through ten ways to market the company once you’re up and running.