Going from licensed tradesperson to licensed business in Texas adds insurance, supervision and renewal costs that arrive before the first job pays. Here is what TDLR asks for.
Apply Now →The Texas Department of Licensing and Regulation licenses both individuals and businesses across dozens of programs. Among them are electricians, air conditioning and refrigeration contractors, and barbering and cosmetology, the three this guide covers. In several of these trades the person and the company hold separate licenses, and the business license is where most of the fixed cost sits.
TDLR's individual electrician licenses include apprentice, journeyman, journeyman industrial, journeyman lineman, master and residential appliance installer, plus sign variants. Opening a shop is a separate license:
TDLR notes contractor licenses do not require an exam and contractors do not need continuing education, but the individual electricians on the license do.
HVAC contractors choose a class:
| Class A | Class B | |
|---|---|---|
| Scope | Any size unit | Cooling systems of 25 tons and under; heating systems of 1.5 million BTU/hour and under |
| Liability per occurrence | $300,000 | $100,000 |
| Aggregate | $600,000 | $200,000 |
| Products and completed operations | $300,000 | $100,000 |
Experience comes first: either 48 months of supervised air conditioning and refrigeration work within the past 72 months, or 12 months holding a technician certification plus 36 months of supervised work within the past 48. Applicants must pass the licensing exam and finish all requirements within one year of filing. TDLR says licenses are valid for one year from issue, and insurance must be maintained the whole time the license is active.
Class choice is a cash-flow decision as well as a scope decision: Class A opens commercial work on bigger systems, but the higher insurance minimums raise the premium you carry every month.
A salon or barbershop needs its own establishment license from TDLR in addition to the operators' licenses. TDLR says establishment licenses are valid for two years, all requirements must be met within one year of the application, and inspectors check health and safety standards. Spaces rented inside a larger shop may need their own mini-establishment license, and mobile units have a separate application. Plan the build-out so the space meets the standards before you book clients.
License fees themselves vary by program and change, so check TDLR's current fee listing. The larger costs are usually around the license, not on it. For illustration only, a new two-truck electrical contractor might face:
The squeeze shows up on the first larger job: a $60,000 commercial install might require $25,000 of wire, gear and fixtures up front, with payment on 30- to 60-day terms after completion. That gap, not the license fee, is what stalls new contractors.
Electrical and HVAC contractor licenses renew every year and salons every two years, and insurance must stay in force continuously. Put renewal dates and premium due dates on one calendar. Growing to a new class or a second crew means higher minimums and more payroll before the extra revenue arrives.
Texas Biz Funding provides $25,000 to $5,000,000 in working capital to operating Texas businesses, including electrical, HVAC and salon businesses carrying materials, payroll and insurance ahead of payment. The application takes about five minutes with a soft credit pull, funding can arrive in as little as 24 hours, and sole proprietors can apply. Apply here.
No, but the company must either assign the owner's master electrician license to it or employ a licensed master electrician, according to TDLR.
TDLR lists at least $300,000 per occurrence, $600,000 aggregate, and $300,000 aggregate for products and completed operations, plus proof of workers' compensation, self-insurance authority, or a statement electing not to carry it.
Class A covers any size unit. Class B covers cooling systems of 25 tons and under and heating systems of 1.5 million BTU/hour and under, with lower insurance minimums.
TDLR says electrician licenses and air conditioning and refrigeration contractor licenses are valid for one year from issue. Barbering and cosmetology establishment licenses are valid for two years.
Yes. After TDLR approves your eligibility you must pass the licensing exam, and all application requirements, including the exam, must be completed within one year of filing.
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