Plumbing is one of those trades where demand never really dips. Pipes leak on weekends. Toilets break on holidays. Water heaters die at 2 AM in January. And every new house, apartment building, and restaurant needs plumbing from scratch.
If you've been turning wrenches for someone else and you're thinking about going out on your own, the economics are on your side. The average plumbing business owner in the US earns significantly more than employed plumbers, and the skilled labor shortage means there's more work available than people to do it.
Here's how to actually make the jump.
Get your master plumber license
In almost every state, you need a master plumber license to run your own plumbing business. This is non-negotiable. A journeyman license lets you work, but it typically doesn't let you pull permits or operate independently.
The path usually looks like this: 4 to 5 years as an apprentice, 1 to 3 years as a journeyman, then the master plumber exam. If you're already a journeyman, you might be 1 to 2 years away from eligibility.
The master exam itself covers code (usually UPC or IPC depending on your state), practical calculations, and business law. Pass rates vary by state, but they typically run 50% to 70%. It's a real test. Study for it.
Cost: $200 to $600 for the exam, plus $200 to $800 for prep materials or a review course. Some states also charge annual renewal fees of $100 to $300.
Business formation
File an LLC with your state. It costs $50 to $500 and protects your personal assets if a customer sues or a job goes sideways. Get an EIN from the IRS (free, online, instant), open a business checking account, and set up a separate credit card for business expenses.
Register for any state and local permits your city requires. Many cities have a separate plumbing contractor registration beyond the state license. Call your city's building department and ask specifically what you need to operate a plumbing business. They'll tell you.
Insurance you actually need
Plumbing work involves water, which means water damage claims. Your insurance situation is not optional. Here's what you need:
- General liability ($1M/$2M). Covers damage you cause on the job. A burst pipe in a finished basement can easily cause $20,000 in damage. Premium: $1,500 to $3,500/year solo.
- Workers' comp. Required in most states even for solo operators. Premium: $2,500 to $6,000/year. Plumbing rates are higher than some trades because of the injury risk.
- Commercial auto. $1,500 to $3,000/year. Your personal policy excludes commercial use.
- Tools and equipment floater. Optional but smart. Covers your tools if they're stolen from your van. $300 to $800/year.
Total insurance budget for year one: $6,000 to $13,000. Yes, it's a lot. It's also what keeps one bad job from ending your business.
Equipment and van setup
| Item | Cost range |
|---|---|
| Work van (used) | $15,000 - $28,000 |
| Drain machine (small and medium) | $1,500 - $4,000 |
| Pipe wrenches, cutters, threading tools | $800 - $2,000 |
| Camera inspection system | $2,000 - $8,000 |
| Soldering/brazing equipment | $300 - $600 |
| PEX tools and fittings inventory | $500 - $1,500 |
| General hand and power tools | $1,000 - $3,000 |
Total startup range: $25,000 to $55,000. The camera inspection system is the one thing I'd prioritize buying new. A good camera pays for itself in the first few months because it lets you diagnose problems without tearing into walls, and customers love being able to see what's going on.
Skip the fancy van upfit for now. Shelving from a used van auction or basic bolt-in shelves from Home Depot work fine. You can upgrade to custom van racking after your first profitable year.
Pricing your work
New plumbing business owners almost always price too low. You're not competing with the plumber working out of his car with no insurance. You're running a legitimate business, and your prices need to reflect that.
Our plumbing pricing calculator will help you work through the math, but here's the quick version: figure out your total monthly costs (overhead, insurance, truck payment, your salary), divide by realistic billable hours (probably 100 to 120/month for a solo plumber), and add 20% to 30% margin.
Most solo plumbing operations in 2026 are billing $110 to $185/hour for service work. Use the contractor rate lookup to see where your market falls.
For project work (remodels, new construction rough-ins), price by the fixture rather than by the hour. It's simpler to quote and customers understand it better. Check our plumbing bid template for a starting framework.
Landing your first customers
Week one: set up your Google Business Profile. Add your license number, service area, hours, and at least 5 photos (van, tools, completed work). This is where 80% of your leads will come from within 6 months.
Week two: tell everyone you know. Former coworkers, suppliers, real estate agents, property managers. Hand out business cards at the supply house. Seriously, the supply house counter is one of the best networking spots in the trades. The people working there talk to every contractor in town.
Month one: sign up for Nextdoor as a business. Post something helpful (not salesy) once a week. Join two or three local Facebook groups for your city and be genuinely helpful when people ask plumbing questions.
Month two onward: build relationships with 2 to 3 property management companies. The per-job rates are usually lower, but the steady volume keeps your schedule full while you build your direct customer base.
Mistakes I see new plumbing companies make
- No service agreements. Offer annual drain maintenance or water heater flush packages. Even at $150/year, 50 agreements give you $7,500 in predictable revenue and a reason to stay in touch with customers.
- Sloppy estimates. Write everything down. Use a template. Customers who get a clean, professional estimate are more likely to say yes than customers who get a verbal ballpark.
- Taking on too much new construction too early. New construction ties up your cash in materials for 30 to 90 days before you get paid. Stick to service and repair work until your cash reserves can handle the float.
- Skipping bookkeeping. Track every dollar from day one. Set aside 25% to 30% of revenue for taxes. Quarterly estimated payments are due in April, June, September, and January.
Realistic first-year expectations
A solo plumber who stays busy and prices correctly can gross $120,000 to $200,000 in year one. After expenses, you're looking at $55,000 to $95,000 in take-home pay. Year two usually jumps 30% to 50% as referrals kick in and you stop spending time figuring out the business side.
It's not glamorous and the first few months are stressful. But plumbing is recession-proof work, and a well-run one-truck operation can support a solid living without employees, without investors, and without anyone telling you when to show up.
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