What to Know Before Becoming an Electrical Contractor

What to Know Before Becoming an Electrical Contractor

Video Source

This video and article will explain the various things you have to be prepared to tackle in order to start your electrical contracting business.

Experience

You need 4 years experience in most states to become an electrician. Your experience has to be in your trade, sales, running a business, and hiring. To do this, look for a union and become an apprentice.

Exams

You also need to pass an examination to become a licensed electrical contractor. There are multiple test prep services, and if you become an apprentice your union may offer one, too.

Setting up a Business

To set up a proper business, you first need a name. You’ll need a phone number and email for clients to contact you, and, in this day and age, a website. You also need a financial plan to get a service truck and, probably, a brick and mortar office. These things aren’t cheap.

Insurance

You need multiple insurances to operate a legitimate business. You will need general liability insurance, commercial auto insurance for your van/truck, and worker’s comp insurance for any help you hire. You’ll likely need a company health plan, too.

Taxes

After all of this and finally getting paid, you need to pay taxes. Depending on your state, this can be a major headache

Becoming an electrical contractor is rewarding and offers financial freedom, but make sure you’re ready to put in the hard work to achieve your dream.

.

Leave a Reply

Your email address will not be published.

RSS
Follow by Email