Electrician firms are largely concerned with maintaining and repairing electrical systems in homes and businesses. It is extremely specialized work because it involves a high degree of risk. Furthermore, non-tradespeople are often prohibited from working on electrical systems by municipal and state governments. Skilled electricians are often in great demand as a result of these considerations.
There’s more to launching a business than merely filing paperwork with the government. However, if you believe starting your own electrician business is the ideal next step for you, this easy-to-follow guide to getting your electrical business off the ground may be just what you need. If you follow the processes outlined here, you can rest assured that your new firm is well-planned, legally compliant, and correctly registered.
In order to start an electrical business in Pennsylvania, you must first complete a number of tasks. Make sure you’re up to date on all criteria, as regulations change on a regular basis. Here are some steps you may need to take (in no particular sequence) to establish your own electrical business, as well as some guidance on further resources that you may find beneficial.
Are you an electrician or plan on becoming one? Why not protect yourself against possible accidents? If you work as an independent contractor, want to start your own company, or manage a business of electrical contractors, consider getting electrician insurance in Pennsylvania. Learn more here.
- Register the name of your electrical company
Visit http://www.dos.pa.gov/BusinessCharities/Business/Resources/Pages/Fictitious-Names.aspx to learn more about registering a unique name for your business.
- Choose a legal framework for your electrical business
There is a range of company structures available, including sole proprietorship, limited liability company, partnership, corporation, and so on. More information may be found at http://www.dos.pa.gov/BusinessCharities/Business/Documents/Business%20Guide.pdf.
- Obtain a business license for your electrical company
The state of Pennsylvania allows you to register your electrical business here: https://www.doreservices.state.pa.us/businesstax/PA100/FormatSelection.htm
- Open a checking account for your business
You’ll need to create a second bank account under your new business name for your electrical company.
- Educate yourself on taxes and employ an accountant
If your electrical business is relatively small, you may choose to file your own taxes. It will get easier to hire an accountant as your business grows. Here’s where you can learn more about taxes: http://www.revenue.pa.gov/ and http://www.irs.gov/Businesses/Small-Businesses-and-Self-Employed/Starting-a-Business/Starting-a-Business
- Make sure you have liability insurance
Look for an insurance agent that specializes in liability insurance. It’s a good idea to look around because pricing and offerings might differ.
As a contractor, you must register with the state of Pennsylvania. To do so, you will need liability insurance.
- Apply for a contractor’s license
There is a registration cost associated with the contractor’s license. The registration is for a period of two years. You can register at https://hic.attorneygeneral.gov/login.aspx. A certificate, as well as your official Pennsylvania Home Improvement Contractor number, will be mailed to you. The legislation specifies that a registration number must be mentioned in all ads, contracts, estimates, and proposals that you utilize in Pennsylvania.
- Get workers compensation
This should be something that the insurance company that supplied your liability insurance can assist you with. Worker’s Compensation isn’t required until you have workers.
- Obtain health insurance coverage
You’ll need your own health insurance because you’ll be self-employed. If you have workers, you’ll need a plan that covers their medical requirements as well.
- Obtain a city license
Regardless of whether you are a resident or not, you may be needed to get a license to do business in a certain location as an electrician.
- Other certifications and licenses
To do some repairs or installations, you may need to be licensed or qualified.
Before beginning some sort of construction-related work, you may need to apply for permits, depending on your location.
- Building codes and inspections
Building codes for your specific work must be followed, and you may be subject to inspections.
- OSHA (Occupational Safety and Health Administration).
You may be required to obey OSHA standards depending on the number of employees you have. http://www.osha.gov