How to Start an HVAC Business & Go from Tech to Company Owner

Do you love working in the services and trades industry? Do you have sharp skills when it comes to heating and air conditioning systems? If so, you’ve probably found a lucrative career working as an HVAC technician. And, way to go, because this is one of those fields where there will always be demand, and you can absolutely be a hero when you solve a client’s heating and cooling challenges.

But what if your career could be more than it is today? What if you could transition from that technician role to the owner of an HVAC business? Does that sound compelling to you? If it is, then this article was practically written for you. The team here at Housecall Pro is about to walk you through everything you need to launch your new venture into HVAC business ownership.

Ready? Let’s get to it. 

How to Start Your HVAC Company in 10 Steps

We know what you’re thinking—it only takes ten steps to start a company? Really? And the answer is yes. However, you’ll have to put in some effort every step of the way. That said, taking time to go through the process can pay off in a big way down the road.

Ready to learn how to start an HVAC business? 

1. Invest in Hands-on HVAC Training and Get Certified

No matter how much you think you already know about the HVAC industry, if you are not yet certified, now is the time to do it. Certification validates your expertise, helps you develop client trust, and opens doors to new opportunities. The great news? You can often pursue certification while working in the field, giving you the chance to build valuable experience on the job.

To earn an HVAC certification, you’ll typically take the following path:

1. Complete an HVAC Training Program: Start by enrolling in a trade school or technical college that offers HVAC training programs. These programs cover the fundamentals of heating, ventilation, air conditioning, and refrigeration systems.
2. Gain Practical Experience: After completing your formal education, look for apprenticeship opportunities where you can work alongside seasoned professionals. To obtain HVAC certification, you typically need 3-5 years of apprenticeship experience.
3. Pass a Certification Exam: Once you’ve gained the necessary skills and experience, you’ll need to pass a certification exam from a recognized organization. The North American Technician Excellence (NATE) certification is one of the most respected credentials in the HVAC field, as it demonstrates your technical competence and dedication to the trade. Additionally, securing an EPA 608 Certification is often mandatory for working with refrigerants. 

What Licenses are Needed to Start an HVAC Business?

To start an HVAC business, you’ll typically need a contractor’s license, which varies by state and often requires proof of HVAC certification, work experience, and passing a licensing exam. Depending on your location, you may also need a business license, liability insurance, and permits for specific HVAC projects. Be sure to check your state and local regulations for any additional licensing requirements.

Learn more: HVAC licensing requirements in the U.S.

2. Create an HVAC Business Plan

Next on the list is to draft your business plan. And we implore you—do not skip this step. Doing your due diligence here and detailing the planned aspects of your business can really help you down the road. Not only will you understand what you need to be successful, but you’ll know what to expect along the way. 

Here are the primary elements of a solid business plan.

• Executive Summary: A brief overview of your business goals and what you aim to achieve.
• Business Overview: A description of your company, mission, vision, and the services you offer. Helpful hint: write this section last after you have completed the other components.
• Market Analysis: Research your target market, competitors, and potential customer base.
• Services Offered: A clear outline of the HVAC services you plan to provide.
• Sales Strategy: Details on how you plan to approach and secure customers.
• Funding Requirements: A breakdown of startup costs and funding needs, if applicable.
• Financial Plan: Financial projections for revenue, expenses, and profitability over the next few years.
• Marketing Plan: Strategies for promoting your business and reaching potential customers.
• Appendix: Additional supporting documents, like certifications or legal paperwork.

Grab a copy: HVAC business plan template

HVAC Services That Are Always in Demand 

Remember how we said earlier that HVAC services will always be in demand? It’s true. However, some services will be more necessary than others. So, make sure that these services make the list of your core competencies. 

• Furnace Replacement: Replace outdated or malfunctioning furnaces; average cost ranges from $3,000 to $7,000.
• New HVAC System Installations: Install heating and cooling systems in homes or businesses; costs typically range from $5,000 to $12,000.
• Air Duct Cleaning: Improve air quality and HVAC efficiency by cleaning ducts; prices range from $300 to $700.
• Tankless Water Heater Installation: Provide energy-efficient water heating solutions; costs range from $2,000 to $4,500.
• Emergency HVAC Services: Offer fast repairs for urgent issues; charges vary but often include additional fees for after-hours work.
• Maintenance & Tune-ups: Conduct routine checks to optimize system performance; typical costs range from $75 to $200 per visit.

Pro Tip: Create priority service agreements to offer fast response times during emergencies and bundle maintenance services for additional value. Use our HVAC service markup calculator to find the right markup for each of your services.

3. Register Your HVAC Company and Get Your Business License

When you are in a business where you will be entering customer homes or places of business, you are going to need to make sure your company is registered with your state and the Internal Revenue Service (IRS). You might be asking if you can start an HVAC business without a license. And sure, you can go the sole proprietor route and do work on the side, but we highly discourage this. Getting your business license and registering your company can provide reassurance to prospective customers that you know what you’re doing.

So, this begs the question—how do you register your business? 

1. Choose a Business Name: Pick a name that represents your services and is easy for customers to remember. Make it unique to stand out in the industry.
2. Perform a Trademark Search: To avoid potential legal conflicts, check for existing trademarks. Tools like TMchecks offer free searches and can even help brainstorm creative name ideas.
3. Verify Domain Name Availability: Use platforms like Namecheap or GoDaddy to confirm the availability of a matching domain name for your website.
4. Obtain a Federal EIN: Apply for an Employer Identification Number (EIN) through the IRS. This number is used for tax purposes and to open a business bank account.
5. Register with State and Local Authorities: Depending on your state, this may involve filing articles of organization or incorporation and paying a registration fee. 

Pro Tip: A strong, unique name paired with a professional online presence can help attract and retain customers.

Best Business Structure for HVAC Businesses

Deciding on the best business structure for your HVAC business should be done with your accountant. And if you don’t have an accountant, now is the time to look for one. These professionals can help you make business decisions to protect your cash flow and keep you operating for the long haul.

Here are the primary business models to consider. 

Sole Proprietorship

• Liability: The simplest structure, but you are personally liable for all debts and legal claims against the business.
• Taxes: Income is reported on your personal tax return.
• Management: You have full control, but there’s no legal separation between you and the business.

Limited Liability Company (LLC)

• Liability: Provides a layer of protection by separating personal and business assets.
• Taxes: Income passes through to your personal tax return, avoiding double taxation.
• Management: Flexible; you can operate as a sole owner or bring in partners.

Corporation (C-Corp or S-Corp)

• Liability: Protects personal assets, similar to an LLC.
• Taxes: A C-Corp is taxed at corporate and personal levels, while an S-Corp avoids double taxation.
• Management: Requires formal structure with shareholders, a board of directors, and detailed record-keeping.

Recommendation: If you’re starting as a sole owner, an LLC can provide flexibility and protection without the complexity of a corporation. Speak with a legal advisor and your accountant to determine the best option.

4. Secure Funding For Your New HVAC Venture 

You will need some funding to help kick off your business. After all, showing up at a customer location without tools and supplies to do the job is a quick way to help you burn a bridge and never get repeat business. 

How Much Does it Cost to Start an HVAC Business?

The specific costs of getting your HVAC business off the ground can really vary based on the tools you have and what you still need. However, we estimate that you’ll need about $8,000 to $40,000 to get going, in addition to costs for a reliable vehicle.

Here’s what will comprise those initial startup costs. 

• HVAC Tools and Equipment: $1,000–$5,000 (basic tools like gauges, drills, and meters, plus specialized equipment for installations and repairs).
• HVAC Software: $50–$150/month (for scheduling, invoicing, and customer management; annual costs range from $600–$1,800).
• Licenses and Certifications: $500–$2,000 (state contractor licenses, EPA certification, and other required credentials).
• Work Truck or Van: $5,000–$25,000 (depending on whether you lease, buy used, or invest in a new vehicle).
• Marketing Materials: $500–$2,000 (website development, business cards, and initial advertising campaigns).
• Insurance: $1,000–$2,500/year (liability insurance to cover potential business risks).
• Office Supplies and Equipment: $300–$1,000 (laptop, phone, and office setup).
• Uniforms and Branding: $200–$500 (branded workwear to present a professional image).

How to Secure Funding to Start Your Own HVAC Company

We know you probably don’t have the funds just sitting around to get started. Don’t let that discourage you. There are several different options that you can leverage. 

• SBA Loans: Small Business Administration loans offer competitive rates and flexible business financing with awesome repayment terms. These loans are a popular choice for startups needing initial funding.
• Personal Savings or Investments: Use your own savings or consider seeking investments from friends and family who believe in your vision.
• Grants for Small Businesses: Look into government or private grants tailored for small business owners, especially those in trades or eco-friendly industries.
• Credit Cards (Last Resort): While accessible, credit cards should only be used if other options aren’t available, as high interest rates can make repayment difficult. Be cautious to avoid damaging your credit rating.

Pro Tip: Partner with a bookkeeper or financial advisor to set up your business bank account and organize your financial systems. This step simplifies your day-to-day operations and lays the groundwork to help you get your business up and running.

5. Get Bonded and Insured Before Your First Job

With the excitement of getting a new business started, it can be easy to forget about insurance. We implore you not to skip this step. First, many customers may ask for proof of insurance before you begin work. Having this protection in place will help you sleep better at night if something goes wrong.

Start with general liability insurance to cover accidents or property damage during jobs. If you plan to hire employees, you’ll also need workers’ compensation insurance to protect against workplace injuries. For an HVAC business with a $50,000 payroll, workers’ compensation insurance typically costs around $133 per month. Keep in mind, this estimate excludes any applicable taxes or additional fees. For your vehicle, commercial auto insurance is necessary to cover work-related travel.

Pro Tips: Compare quotes from multiple providers to find the best fit for your budget. Pay close attention to coverage limits and exclusions to avoid surprises down the road. Having the right protection can help build trust with customers.

6. Purchase Necessary HVAC Equipment and Supplies

Earlier, we discussed some of the equipment you’ll need to start your business. Now, it’s time to purchase the tools you’ll need for a successful HVAC business. But we encourage you to invest in high-quality HVAC tools, not the cheapest ones at your local home improvement store. Reliable equipment not only improves your productivity but also helps build trust with customers.

Here’s a list of essential HVAC tools and equipment:

• Basic Hand Tools: Screwdrivers, wrenches, pliers, and tape measures.
• Digital Multimeter: For accurately testing electrical components.
• Leak Detector: To identify refrigerant leaks quickly and efficiently.
• Personal Protective Equipment (PPE): Gloves, safety glasses, and masks for job site safety.
• Drills and Bits: For installations and repairs.
• Vacuum Pump: For removing air and moisture from HVAC systems.
• Refrigerant Recovery Machine: To comply with environmental regulations.
• HVAC Software: A digital tool for managing scheduling, invoicing, and customer information.

Learn more: The best HVAC tools to handle jobs with ease

7. Determine Your Pricing Strategy 

Now it’s time to talk money. How much is it going to cost you to deliver services, and how much are you going to charge your customers for those services? Refer back to your business plan and the competitive analysis you did to see how much your local competitors are charging for the same businesses. You will want to create an HVAC price book with your prices to be similar, not drastically lower or higher. 

Remember, the way to differentiate your business is by providing amazing customer service, not by undercutting other businesses around you. Striking the right balance is so important to covering your costs, earning a profit, and remaining competitive in your market. 

Below are common pricing strategies to consider:

• Flat-Rate Pricing: Offer fixed prices for specific services, such as $150 for a system tune-up. This simplicity appeals to customers and helps avoid misunderstandings.
• Hourly Rates: Charge based on the time spent on the job, such as $75 per hour. This method works well for troubleshooting and smaller repairs.
• Labor Time + Materials: Add the cost of materials used to your hourly labor rate. This method keeps pricing transparent and prioritizes you to cover all expenses.
• Tiered Pricing: Provide service packages (e.g., good, better, and best). For example, a basic repair includes standard fixes, while a premium adds perks like extended warranties or additional system checks.

When determining your prices, factor in your operating costs, desired profit margin, and local market rates. A well-thought-out pricing structure helps you remain competitive while making sure your business remains sustainable.

Learn more: HVAC price book template

8. Create an HVAC Marketing Plan

We’ve talked about this so often in other articles we have posted on the Housecall Pro blog. While great customer service will help your business grow, you will need to invest in marketing and advertising efforts to spread the word that your business is here and ready to help customers. 

We recommend that you start with creating a logo that aligns well with your business name. Next, establish your brand identity. Your brand identity includes your logo, colors, messaging, and overall tone that help customers recognize and trust your business. Consistency across marketing channels—like your website, social media, and ads—makes your business appear professional and reliable.

Best HVAC Marketing Strategies to Get Customers

Here are some effective digital marketing strategies to get started:

• Create a Professional Website: Your HVAC business website should include service details, contact information, and customer testimonials. We also recommend an online booking tool, so your customers can easily get time on your schedule.
• Work on Your Websites SEO: Invest in your HVAC website’s SEO by optimizing its page titles, meta descriptions, and body content with local keywords. Add services pages, customer testimonials and optimize its speed for mobile to help potential clients find it in local search results.
• Claim Your Google Business Profile: Optimize it with accurate information and encourage satisfied customers to leave reviews.
• Run Paid Google Ads: Target local customers searching for HVAC services in your area with Google Local Service Ads.

Expand your reach by joining professional associations such as the Air Conditioning Contractors of America (ACCA), the Radiant Professionals Alliance (RPA), and your local chamber of commerce. Build relationships with general contractors, builders, and remodelers, as they often need HVAC services for their projects. These connections can generate long-term business opportunities.

Free eBook: Learn marketing strategies, and how to grow your HVAC business the right way with our Ultimate Guide to Running a Profitable HVAC Company

9. Hire and Train Your First HVAC Technicians

As your business grows, you won’t be able to go it alone. We recommend hiring high-performing and highly skilled individuals from the get-go to make sure you can respond to customer appointments on time. The last thing your customers will want is to wait a week to get their furnace working because you don’t have enough staff.

Finding skilled HVAC technicians starts with using recruiting websites like Indeed or LinkedIn to post detailed job listings. Consider offering apprenticeships to train motivated individuals and build loyalty. Prepare thoughtful interview questions to assess technical skills, customer service abilities, and problem-solving approaches. 

Networking at trade schools, HVAC training programs, and through your local chamber of commerce can also connect you with potential hires. Once you find the right candidates, provide hands-on training and clear guidelines to set them up for success in your growing business. 

Additional Resources to Help You Hire the Best HVAC Team

• HVAC Technician Salary Guide: Discover average HVAC technician salaries across the U.S., including insights into regional pay differences.
• Hiring and Leadership Guide: Learn the ins and outs of building a high-performing team with this comprehensive guide to hiring and leadership for HVAC business owners.
• HVAC Employment Application Template: Save time and stay organized with this customizable application template to screen and evaluate job candidates.
• HVAC Office Manager Job Description Template: Attract the right talent with this professionally crafted job description template for hiring an office manager.

10. Trust the Best HVAC Software to Grow Your Business

While you may like manual processes, it isn’t really the best approach to help your business stay organized. Not only can today’s technology help you leverage automation to help you save time, but it can make tax time so much easier.

Here are the features to look for in the best HVAC business software to help you improve business efficiency, grow customer retention, lower costs, and keep your customers happy. 

• Estimates: Create professional, accurate HVAC quotes quickly.
• Scheduling: Provide clarity on job assignments and keep your team organized.
• Invoicing & Payments: Generate invoices and accept payments with ease.
• Customer Relationship Management (CRM): Track customer interactions and maintain strong relationships.
• Time Tracking: Monitor employee hours and job progress with time-tracking capabilities.
• Mobile App: Access your business tools from anywhere.
• Price Book: Keep pricing consistent and readily accessible for all team members.
• Online Booking: Let customers schedule appointments through your website.
• Service Plans: Offer maintenance agreements to build loyalty and recurring revenue.

Next Steps in Starting Your Own HVAC Business

Are you ready to get started with your own HVAC business? If so, you’ll be joining an industry worth over $26.9 billion with plenty of work for skilled professionals. For the best success, follow the steps listed in our article and explore Housecall Pro’s HVAC field service software with a free 14-day trial today.

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