How to Start an HVAC Business in 2026

I talk to a lot of HVAC techs who've been working for someone else for 5, 10, even 15 years. They're good at what they do. They show up on time. They fix things right the first time. And at some point, every one of them has the same thought: why am I making someone else rich?

Starting your own HVAC company is one of the better trades to go independent in. The work is year-round in most markets, the barrier to entry is real enough to keep out hobbyists, and the average homeowner has zero interest in learning how a condenser works. They need you.

But going from "good technician" to "business owner" is where most people stumble. Here's what the process actually looks like in 2026.

Licensing and certification

This is the part you can't skip or shortcut. Every state requires some form of HVAC contractor license, and the requirements vary wildly.

At minimum, you'll need your EPA 608 certification for handling refrigerants. Most states also require a mechanical or HVAC contractor license, which usually means passing a trade exam and a business law exam. Some states (California, Texas, Florida) require several years of documented journeyman experience before you can even sit for the exam.

Check your state's contractor licensing board website. Not a forum post, not a Reddit thread. The actual state website. Requirements change, and outdated advice could cost you months.

Budget $500 to $2,000 for exam prep courses, test fees, and the license itself. Timeline: 2 to 6 months depending on your state and whether you already have the required experience hours.

Business structure and registration

Form an LLC. It costs between $50 and $500 depending on your state, and it separates your personal assets from your business liabilities. If something goes wrong on a job and you're operating as a sole proprietor, your house and savings are on the table.

After the LLC, get your EIN from the IRS (free, takes 10 minutes online), open a business bank account, and register for state and local business tax accounts. If your state has sales tax on services or parts, you'll need a sales tax permit too.

Total cost for business formation: $200 to $800. Don't pay a service $1,500 to do what you can handle yourself on your state's Secretary of State website.

Insurance

You need three policies before you take your first call:

• General liability ($1M/$2M is standard). Covers property damage and bodily injury claims. Expect $1,200 to $3,000/year for a solo operator.
• Workers' compensation. Required in most states even if you have zero employees. Some states let sole proprietors opt out, but many general contractors won't hire you as a sub without it. $2,000 to $5,000/year.
• Commercial auto. Your personal auto policy won't cover an accident while you're driving to a job site with tools in the truck. $1,500 to $3,500/year.

Get quotes from at least three brokers who specialize in contractor insurance. The prices swing dramatically. One broker quoted a guy I know $4,800/year for GL; another quoted $1,600 for the same coverage. Same business, same risk profile.

Equipment and startup costs

You don't need to buy everything new on day one. Here's a realistic breakdown for a solo residential HVAC operation:

Item	Cost range
Service van (used, decent condition)	$15,000 - $30,000
Refrigerant recovery machine	$800 - $2,000
Manifold gauges, vacuum pump, leak detector	$500 - $1,500
Basic hand tools and power tools	$1,000 - $3,000
Multimeter, manometer, combustion analyzer	$800 - $2,500
Initial parts inventory	$1,000 - $3,000
Licensing, insurance, formation	$3,000 - $8,000

Realistic all-in startup: $22,000 to $50,000. If you already own a truck and basic tools, you could get rolling for under $15,000.

The van is your biggest expense. A clean, organized service van also happens to be your best marketing tool. Customers notice when you show up in a van that looks professional versus a beat-up pickup with tools rattling around in the bed.

Setting your prices

This is where new HVAC business owners consistently screw up. They look at what other companies charge, pick a number slightly lower, and hope for the best. That's not pricing. That's guessing.

You need to know your actual cost per hour of operation, then add a profit margin. Our HVAC pricing calculator walks you through this, but the short version: add up all your monthly expenses (including paying yourself), divide by your realistic billable hours, and multiply by 1.2 to 1.35 for profit margin.

For 2026, most solo HVAC operators are billing between $95 and $175/hour depending on market and service type. Don't be the cheapest. Cheap attracts the worst customers and trains your market to expect low prices from you forever.

Use our contractor rate lookup to see what HVAC techs actually earn in your city based on BLS data. That gives you a baseline for what the market supports.

Getting your first customers

Your first 10 to 20 customers will probably come from people you already know. Tell everyone. Family, friends, neighbors, the guys at the supply house, your old coworkers. Not in a weird, salesy way. Just: "Hey, I started my own HVAC company. If you know anyone who needs work done, I'd appreciate the referral."

After that, here's what actually works in 2026 for local HVAC companies:

• Google Business Profile. Set it up on day one. Add photos of your work, respond to every review, post updates weekly. This is free and it's how most homeowners find local contractors.
• Nextdoor. Homeowners on Nextdoor actively ask for contractor recommendations. Claim your business page and be active in your neighborhoods.
• Home warranty and property management companies. The work often pays less per call, but the volume can keep you busy while you build your direct customer base.
• Yard signs. When you finish a job and the customer is happy, ask if you can leave a small sign in their yard for a week. Old school, still works.

Skip the expensive lead generation services (HomeAdvisor, Angi) until you have enough cash flow to absorb leads that don't convert. They can work, but the cost per acquired customer is often $200+.

Common mistakes to avoid

I've watched enough people go through this to know where the landmines are:

• No written contracts. Every job needs a written scope of work and price. Every one. Even for your uncle.
• Ignoring bookkeeping. Set up QuickBooks or Wave on day one. Separate every business transaction. When tax season comes, you'll be glad you did.
• Taking on install work too early. Service calls are faster money with lower risk. Build your cash reserves before you start quoting $8,000 installations that tie up your capital in equipment.
• No maintenance agreements. Recurring revenue is what turns a job into a business. Offer annual maintenance plans from the beginning, even if you only have 5 customers.

Your first year timeline

Month 1-2: Get licensed, insured, and legal. Set up your van. Build a simple website and Google Business Profile.

Month 3-4: Start taking service calls. Price carefully using real numbers. Ask every happy customer for a Google review.

Month 5-8: Build maintenance agreement base. Start getting referral calls. Reinvest in better diagnostic tools.

Month 9-12: Evaluate whether you need a helper. Consider adding install work if cash flow supports it.

Most solo HVAC operators who follow this path are clearing $60,000 to $90,000 in their first full year. That grows significantly in year two as referrals compound and maintenance agreements stack up.

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