How to Start a Roofing Business in Tennessee
Do you want to create a roofing company in Tennessee? Cool! This guide will tell you everything you need to know to get your business up and running. Pay close attention because we will detail the steps for your business to comply with the necessary legal requirements.
This business is profitable because all structures require replacement or repair after a certain time. Generally, the useful life of typical roofs is 15 years, but sooner they need maintenance after installation.
Studies project that the roofing industry in North America will produce $47,5 million or more in 2025. It will have an annual growth rate of 5.9%.
First steps to start your business
But before delving into the registration and other procedures, you should focus on defining your target market and what the costs are. See if it is necessary to have additional space to store materials, transport costs, rent an office. As well as hiring internet service, public services and labor.
Remember that roofers can earn money for inspections and evaluations, for repairs and installations in old and new structures, coating and even consulting. They can get up to six figures in a year or two of operations.
On average the roofing business they charge $5.000 and $10.000 for replacement work depending on the area and type of roof. $350-$450 per inspection, $500-$700 cleaning and $750-$1000 leak repair. You may need between $15.000 and $20.000 to start.
How to Start a Roofing Business in Tennessee
1. Choose a business structure
The first step in starting any business is choosing the right business structure. In the case of a roofing company, the most common structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. You should consult with an attorney or accountant to determine which structure is best for your business.
If you opt for a sole proprietorship, you will surely want to operate under a fictitious name (DBA). The government offers Tennessee SmartStart which is a guide to small business formation.
2. Register the company in the state
Once you have chosen a business structure, you must register your business with the state. This process varies, so be sure to check with the appropriate agency. In Tennessee, it's the Tennessee Secretary of State. On their website you will find all the information about the process.
3. Get a tax identification number
Every business needs a tax identification number (also known as an employer identification number or EIN). You can apply for an EIN online at the IRS website.
Then register the business in the state tax department. It is essential to declare taxes and have an identification in the state.
4. Open a bank account
You will also need a bank account to keep track of your company's finances. Contact local banks and ask about their small business products.
This step is key to building the company's credit profile and qualifying for credit. Major banks in Tennessee include: CapStar, Wells Fargo, Wilson Bank and Trust, and Bank of the USA.
5. Acquire civil liability insurance
As a roofing company, you will be working with hazardous materials and equipment. It is important to protect yourself from potential lawsuits by purchasing liability insurance. Talk to an insurance agent to find the right policy for your business.
Liability insurance covers property damage caused by company workers. Besides, hire the workers' compensation, protects them if they get sick or injured at work. Likewise, vehicle insurance is necessary.
6. Obtain the corresponding licenses
Most businesses in Tennessee need to obtain a business license from the county clerk's office. The business license fee varies by location, so be sure to check with your local office.
A contractor's license is also required to start projects of $25 or more, whether you're a prime contractor or a subcontractor. In case you have a license from another state, they provide you with an exemption from the commercial exam.
The issuance of the same takes between 4 and 6 weeks, since it has to be approved by the Board of State Contractors in scheduled meetings. You must request them at Comprehensive Online Compliance and Regulation System.
To apply, you must pay the $250 application fee, provide a financial statement, provide proof of general liability and workers' compensation insurance. Look for more information in https://www.tn.gov/commerce/regboards/contractor/how-to-become-a-licensed-contractor.html.
7. Hire employees
If you plan to hire employees, you will need to obtain workers' compensation insurance. You can purchase this coverage through an insurance agent or broker. You will also have to pay unemployment taxes and withhold income taxes from your employees' paychecks.
8. Meets OSHA regulations
The Occupational Safety and Health Administration (OSHA) has strict regulations for businesses that work with hazardous materials. Be sure to familiarize yourself with these regulations and to comply with them.
In the case of roofing companies OSHA emphasizes maintaining safety measures at work. Apart from using the proper equipment for fall prevention.
9. Keep good records
It is important to keep accurate records of income and expenses. This will help when it comes time to file taxes. Be sure to keep receipts for all your purchases and to track mileage if you use the vehicle for business purposes.
10. Let it be known
The final step in getting your roofing business up and running is letting people know you're in business. You can do this by advertising in local newspapers and on the Internet, as well as by posting flyers in public places. You can also offer free estimates to potential customers.
Open a website, list the services on it and show your client portfolio, launch profiles on Facebook, Yelp, Thumbtack and other social networks.
Starting a roofing business in Tennessee can be a great way to make a living. Just try to follow the steps indicated by Hispanic Entrepreneurs in this guide and you will be on your way to success. Good luck!
Related Notes: