How to Legally Start a Heating & Air Business

A heating and air business is more than just vents.

The need for heating and air specialists will likely never diminish. A continual stream of technology improvements propels the need for new skills to match the demand. You can start your own heating, ventilation, air-conditioning and refrigeration (HVACR) business on a shoestring budget. Construction industry aptitude and determination are the main traits you must have to make it a success. Although you may be anxious to repair the furnace today, taking time out to legally register it is the right way to do it. Once completed, you can concentrate more on how to effectively run your business.

Instructions

1. Determine if your business' legal structure will be a sole proprietorship, limited liability corporation (LLC), other form of corporation, or partnership. The forms you file and where you file will depend on the type of legal structure of our business.

2. Register your business name with the secretary of state if you are using a fictitious name for your business. Certain forms of corporations may have this step already included when you file certain forms. However, verify this with your local business registration authority, whether it is the secretary of state or other local agency.

3. Visit the Small Business Administration website link (see Resources) and find the "Business Structure and Tax Implications" page that identifies your legal structure that your business will follow under "Federal Income Taxes." Follow the instructions to legally register your business.

4. Visit the Small Business Administration website and search for the State Tax Resources for a list of states and how to register there. Follow the instructions to legally register your business in your state.

5. Click on the IRS.gov website and then search for "Apply for an EIN Online" to apply for an EIN. The government uses EINs to identify business entities from individual taxpayers.

6. Obtain commercial liability insurance in the state(s) where you operate your business. Having insurance protects you and your business. It also helps those you do business with feel more comfortable about doing business with you.

7. Contact the construction industry licensing board in your state. File the appropriate forms to be a licensed commercial heating and air conditioning service contractor. Pass the required exams to obtain your contractor's license.

Tips & Warnings

• Join the Air Conditioning Contractors of America (ACCA) or other industry-based organization to keep in the know about the latest technology in HVACR.

• Prepare a business plan before applying these steps.

• Get NATE certified as a specialist in heating and cooling. Pick an industry niche to specialize in. Some examples include air conditioning, gas furnaces, and light commercial refrigeration.

References

• SBA.gov: Starting a Business: Follow These Steps to Starting a Business

Resources

• SBA.gov: Business Structure and Tax Implications
• SBA.gov: State Tax Resources
• IRS.gov: Employer ID Numbers (EINs)
• Air Conditioning Contractors Association (ACCA)
• National American Technician Excellence (NATE)
• SBA.gov: Writing a Business Plan