Skip to content

Free tools for starting and running a small business

GoProOffice

Electrical contracting

An electrical contracting business sells installation and repair jobs. It requires a license, permits and inspections in most places.

Updated

Start my local planWhat to charge →

What the public data shows

U.S. businesses with no employees in the Census Bureau’s Electrical Contractors and Other Wiring Installation Contractors category (NAICS 23821), 2023.

Exact match.

Businesses with no employees
159,693
The middle business took in
$10,000–$24,999
in sales for the year, before expenses
Average sales per business
$57,485
pulled up by a few large ones

How much these businesses took in, 2023

  • Under $5,00022%
  • $5,000–$9,99913%
  • $10,000–$24,99920%
  • $25,000–$49,99916%
  • $50,000–$99,99913%
  • $100,000–$249,99911%
  • $250,000–$499,9994%
  • $500,000–$999,9991%
  • $1,000,000–$2,499,9990%
  • $2,500,000–$4,999,9990%
  • $5,000,000 or more0%

55% took in less than $25,000 for the whole year — many are side or part-time businesses. If you plan to do this full time, your plan needs sales well above the middle. The local plan works out exactly how much.

What these numbers are — and aren’t. Sales (receipts) before any expenses: not profit, and not what the owner takes home. Counts every business with no paid employees that filed a tax return, including side businesses. The Census Bureau adds a small amount of noise to protect privacy. Businesses with employees aren’t included.

Source: U.S. Census Bureau, Nonemployer Statistics 2023 (released 2025) (data files), retrieved 2026-10-31.

Main caution: Electrical work generally requires a state or local license, plus permits and inspections. This plan assumes you hold or will hold the right license.

What it costs to run

These are the categories to price with local quotes. The plan lists every one of them for you.

Every job

  • Materials not billed separately
  • Permit fees per job
  • Travel (fuel, mileage)
  • Helper or apprentice pay per job
  • Other per-sale costs

Every month

  • Liability insurance (and bond, if required)
  • Work vehicle (business share)
  • Tool repair and replacement
  • Phone and internet
  • Estimating, scheduling and invoicing software
  • Ongoing marketing
  • License renewals and continuing education (yearly ÷ 12)
  • Bookkeeping and tax preparation
  • Other monthly costs

To start

  • Tools and test equipment
  • Van shelving and stock
  • Business registration and local licenses
  • Website, logo and booking or store page
  • Other one-time costs

Your own pay is part of the cost, too. The plan works out the price that covers it — or start with how much to charge for electrical contracting.

Licenses, insurance and rules to check locally

Requirements differ by state, county and city. Check two layers:

1. Your own license, if the work needs one

Search the CareerOneStop License Finder (US Department of Labor) for “Electrician” or “Electrical contractor” and choose your state. It lists state occupational licenses and the agency that issues each.

2. Business licenses, permits and insurance

Start with the SBA: Apply for licenses and permits guide, then your city or county. Questions to answer:

  • What electrical license does your state or city require to contract on your own?
  • Which jobs need permits and inspections in your area?
  • What bond and liability insurance does your license require?
  • If you hire, what are your state’s rules for workers’ compensation, payroll taxes and worker classification?

Check local prices before you set yours

Get three real prices from electrical contracting businesses near you, the way a customer would: their websites, a quote request, local listings and review sites, or neighborhood groups. Note what each price includes. Enter them in your local plan — it shows where your price sits and whether your costs leave room to compete.

Test demand before you spend

Offer your first few jobs at your real price to people who match your customer — not discounted favors for friends — before investing in more equipment or marketing.

Decide your pass mark before you start — for example, a set number of paid jobs within 30 days.

Questions your local plan has to answer

  • What do local competitors charge? Ask for quotes the way a customer would.
  • How long does each job take you, including travel and preparation?
  • How many jobs can you deliver in a week at a quality you’re proud of?
  • How will customers find you, and what will it cost to win each one?

This profile is educational. It describes how this kind of business generally works; it doesn’t show that it will be profitable where you are, and it isn’t legal, tax or financial advice.