How to start a roofing company: your complete blueprint

Starting a roofing company is a rewarding venture, blending practical craftsmanship and safety knowledge with sharp business acumen. The industry is worth tens of billions of dollars, fueled by steady demand for roof repairs and replacements from homeowners, commercial property managers, and in new construction.

This guide will take you through the practical steps of obtaining licenses, acquiring equipment, building supplier relationships, and securing funding to help you launch a successful roofing company in the U.S.

Step 1: Create your business plan and validate the market

Your first move is to understand your local market. Use U.S. Census Bureau data to find neighborhoods with older homes, as these are prime candidates for roof replacements. You can also check your city or county's public records for building permits to gauge roofing job frequency.

Analyze competitors and estimate costs

Identify your local competition by searching on Google Maps and review sites like HomeAdvisor. Note their services, pricing structure, and customer feedback. A frequent misstep is underestimating initial expenses. You should budget for these key areas.

• Vehicle: A dependable used work truck can range from $20,000 to $35,000.
• Equipment: Ladders, safety harnesses, and nail guns will cost about $5,000 to $10,000.
• Insurance & Licensing: Set aside $5,000 to $7,000 for general liability insurance and initial licensing fees.

With these figures, your initial startup investment will likely fall between $30,000 and $52,000 before you even consider marketing or payroll.

Here are 3 immediate steps to take:

• Research housing age data for three target zip codes.
• List five local competitors and analyze their online reviews.
• Create a preliminary budget with estimated costs for a truck, tools, and insurance.

Step 2: Set up your legal structure and get licensed

You might want to consider forming a Limited Liability Company (LLC). This structure protects your personal assets if the business faces a lawsuit. Filing for an LLC with your Secretary of State typically costs between $100 and $500. Many new roofers make the mistake of operating as a sole proprietor, which puts their personal finances at risk.

Navigate federal, state, and local requirements

Once your LLC is registered, get a free Employer Identification Number (EIN) from the IRS website. You need an EIN to open a business bank account and hire employees. With your business structure decided, the next layer is licensing. State requirements vary significantly.

For example, California's Contractors State License Board (CSLB) requires four years of experience and passing two exams. In contrast, Texas has no statewide license, but many cities require local registration. Check your state's contractor board for its specific rules. Expect application and exam fees to be around $500 to $1,500.

You will also need a building permit from your local city or county for nearly every job. These permits can cost $250 to $500 and usually take a few days to a week to process.

Here are 4 immediate steps to take:

• File LLC formation documents with your Secretary of State.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• Research your state's specific roofing contractor license requirements.
• Contact your local building department to understand its permit application process.

Step 3: Secure insurance and manage risk

Protect your business with the right coverage

Insurance is non-negotiable in roofing. You will need several policies to operate safely and legally. Many new owners mistakenly assume a standard general liability policy is sufficient, but you must confirm it specifically covers roofing operations, as many policies exclude it.

Here is what your coverage should look like:

• General Liability: Aim for $1 million to $2 million in coverage. Annual premiums often range from $4,000 to $9,000.
• Workers' Compensation: This is mandatory if you have employees. Costs vary by state but are calculated as a percentage of your payroll.
• Commercial Auto: You need this for your work truck. Expect to pay $1,500 to $3,000 annually per vehicle.

When you look for providers, consider companies like The Hartford or Next Insurance. It is also wise to connect with a local insurance broker who specializes in construction trades. They understand the unique risks, from employee falls to property damage from debris.

Here are 3 immediate steps to take:

• Request quotes for general liability and commercial auto insurance.
• Verify with any potential provider that their policy explicitly includes roofing work.
• Research your state's requirements for workers' compensation insurance.

Step 4: Set up your location and buy equipment

Find a base of operations

You do not need a formal office at first. A small, secure storage space or a section of a warehouse is enough. Look for a 500 to 1,000 square foot unit in an area zoned for commercial or light industrial use. This prevents issues with city ordinances.

When you look at leases, you might want to negotiate for a shorter term, like one or two years. This gives you flexibility as your business grows. Some new owners get locked into long leases for spaces they quickly outgrow or find unsuitable.

Purchase your primary equipment

With a place to store things, your next focus is the gear. You can save significantly if you buy quality used equipment. Look at online marketplaces or local auctions before you buy new. Your initial setup should include these items.

• Ladders: A 32-foot or 40-foot extension ladder and a few stepladders will run $500 to $1,200.
• Safety Gear: Fall protection kits with harnesses and ropes cost about $300 to $600 per worker.
• Nail Guns: Expect to pay $200 to $400 for each pneumatic roofing nailer.

Establish supplier accounts

You will need accounts with roofing material suppliers. Companies like ABC Supply and Beacon Roofing Supply are national players. Contact a local branch to set up a cash account using your EIN and business registration. This allows you to purchase materials as needed.

Here are 3 immediate steps to take:

• Research local commercial zoning for a small storage space.
• Price out a starter equipment package, comparing new and used options.
• Contact a major supplier like ABC Supply to open a business account.

Step 5: Set up payment processing

A standard payment structure in roofing is a 50% deposit to cover materials and the remaining 50% upon completion. This approach protects your cash flow. Some new owners make the mistake of ordering materials before securing a deposit, which can create immediate financial strain.

Choose a payment solution

While some clients may pay by check, offering card payments is a professional touch. For a roofing company that needs to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and done.

At just 1.99% per transaction with no hidden costs or extra hardware needed, it is a strong offer. Other providers often charge between 2.5% and 3.5%. It is particularly useful for collecting a deposit right after a client signs the contract at their home.

Getting started is straightforward:

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available right on your JIM card as soon as the sale is done. No waiting for bank transfers.

Here are 3 immediate steps to take:

• Decide on your standard payment terms, such as a 50% deposit.
• Compare JIM's 1.99% rate to other payment solutions you find.
• Download the JIM app to explore its interface on your phone.

Step 6: Secure funding and manage your finances

Explore your funding options

The Small Business Administration (SBA) is a great starting point. Their 7(a) loan program can provide funds, but you will need a credit score of at least 680 and a detailed business plan. Interest rates often float around Prime plus 2.75% to 4.75%.

You could also look into equipment financing. This type of loan is specifically for purchasing your truck and tools. Rates vary from 4% to 20% based on your credit history and the equipment's value. Some lenders specialize in construction trades.

Many new owners make the mistake of using all their personal savings. A business line of credit is a more flexible option for managing cash flow and unexpected expenses. It acts as a safety net without you having to liquidate personal assets.

Plan your working capital

You will need enough cash to operate for the first six months, even with slow initial sales. This reserve should cover payroll, insurance premiums, fuel, and marketing. Plan for about $25,000 to $40,000 in working capital to stay afloat.

Here are 4 immediate steps to take:

• Check your personal credit score to see where you stand for loans.
• Review the requirements for an SBA 7(a) loan on their website.
• Get a quote for equipment financing from a lender that works with contractors.
• Create a six-month budget to determine your exact working capital needs.

Step 7: Hire your crew and set up operations

Your first hires will likely be a Roofer and a Foreman. A roofer handles the physical work and might earn $20 to $28 per hour. A foreman supervises the crew, ensures safety protocols are met, and acts as the on-site client contact, commanding $28 to $40 per hour.

A mistake some new owners make is classifying workers as 1099 independent contractors to avoid payroll taxes. The IRS has strict guidelines, and misclassification can result in heavy fines. It is safer to treat your crew as W-2 employees from the start.

Invest in safety and efficiency

With your crew in place, focus on their training. All field employees should complete OSHA 10-hour safety training. Your foreman needs the more comprehensive OSHA 30-hour certification. This is a standard expectation in the industry and protects your team and your business.

To manage projects, you might want to consider software like AccuLynx or Jobber. These platforms help with scheduling, estimates, and customer communication. As you scale, a good benchmark is to generate between $150,000 and $200,000 in annual revenue per field employee.

Here are 4 immediate steps to take:

• Draft job descriptions for a roofer and a foreman.
• Consult an accountant about setting up payroll for W-2 employees.
• Research local providers for OSHA 10-hour and 30-hour training.
• Request a demo from a roofing management software like AccuLynx.

Step 8: Market your business and get customers

Build your digital footprint

Your first marketing move should be a simple, professional website. You can use a platform like Squarespace to build one over a weekend. Focus on photos of your work and clear contact information, as this is your digital business card.

Next, set up a free Google Business Profile to appear on Google Maps. Encourage your first few customers to leave reviews. Aim for 5 to 10 positive reviews within your first three months to build credibility quickly.

Platforms like Angi or HomeAdvisor can provide leads, but they come at a cost. Expect to pay $50 to $150 per lead. A frequent misstep is to rely on these services without a system to track which leads become jobs.

Use proven offline strategies

Do not underestimate old-school methods. Door-knocking in neighborhoods after a storm is a classic and effective tactic. Homeowners are often actively looking for roof inspectors, so this direct approach can yield immediate results if done professionally.

Yard signs are another powerful tool. After you complete a job, ask the homeowner if you can leave a sign in their yard for a couple of weeks. This provides powerful social proof to their neighbors. You can combine this with professional door hangers left at nearby homes.

As you market your business, track your Customer Acquisition Cost (CAC). In roofing, a CAC between $300 and $500 per job is common. A good goal is to convert 20% to 30% of your qualified leads into signed contracts.

Here are 4 immediate steps to take:

• Set up your Google Business Profile and add photos of your work.
• Design and order 500 professional door hangers for a target neighborhood.
• Ask your first customer if you can place a yard sign on their lawn.
• Research lead costs on Angi or HomeAdvisor for your service area.

Step 9: Price your services and create proposals

Set your price per square

Most roofers price jobs by the "square," a 10x10 foot area. For a standard asphalt shingle roof, you might charge between $400 and $700 per square. This price depends on your local market, material costs, and the roof's pitch and complexity.

To find your price, calculate your direct costs for materials and labor per square, then add your overhead. A mistake some new owners make is to only account for direct job costs, which is a fast track to losing money. Your overhead includes insurance, marketing, and vehicle expenses.

Determine your profit margin

With your total cost per square figured out, you can add your profit. A healthy gross profit margin for a roofing job is between 25% and 40%. For example, if your total cost is $350 per square, a 30% margin means you would charge about $500 per square.

Your proposal should be clear and professional. Use a template that details the scope of work, the specific materials you will use, the total cost, and your payment terms. Software like AccuLynx can help you generate these documents quickly and accurately.

Here are 4 immediate steps to take:

• Calculate your total cost per square for a standard asphalt shingle roof.
• Set a target gross profit margin, aiming for at least 25%.
• Create a professional proposal template for future clients.
• Call two local competitors for a quote on a hypothetical roof to gauge market rates.

Step 10: Establish quality control and scale your operations

Your reputation is built on the quality of your work. You can formalize this by pursuing manufacturer certifications like GAF Master Elite or CertainTeed ShingleMaster. These programs require you to prove your installation quality and business stability, which is a powerful signal to customers.

Measure what matters

Track your call-back rate, which is the percentage of jobs that require a return visit to fix an issue. A rate below 2% is a strong indicator of high-quality work. You should also implement a final walkthrough checklist for your foreman to use on every project.

Know when to grow

A good benchmark for efficiency is to generate between $150,000 and $200,000 in annual revenue per field employee. Many owners make the mistake of adding a second crew before their processes are solid, which often leads to a drop in quality and customer satisfaction.

Once you find yourself spending over half your time on sales and admin instead of job oversight, it is time to hire an office manager. As you scale, software like AccuLynx helps manage multiple crews and projects without letting details slip through the cracks.

Here are 4 immediate steps to take:

• Research the requirements for a GAF or CertainTeed manufacturer certification.
• Create a final walkthrough checklist for your foreman to use on every job site.
• Calculate your current revenue per field employee to benchmark your efficiency.
• Start tracking your call-back rate to measure first-time quality.

Starting a roofing company is a big step. Remember that your reputation for quality work and safety is your most valuable asset. This business is built on trust, one roof at a time. You have the roadmap, now go build your company with confidence.

As you secure your first jobs, make sure payment is simple. JIM turns your phone into a card reader, so you can accept payments on-site for a flat 1.99% fee. It helps keep your cash flow steady from the start. Download JIM and you are ready.