Starting a electrical business: your first-month checklist
The usual order of things. Pick your state below for its exact rules, deadlines and official links.
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Check your electrical license
Most states license electricians at the state level; a few leave it to cities and counties. Your city also issues permits for most jobs. Check your state
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Get general liability insurance
General contractors and homeowners will ask for your certificate before you start a job. See options
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Get your EIN
Free from the IRS, online in about 10 minutes. Banks, clients and payroll all ask for it. You never need to pay a service for it. How to get it free
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Open a business bank account
Keeps the company's money separate from yours, which is what protects your LLC. See options
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Insure your work van
Personal auto policies usually don't cover a vehicle used for business. See options
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Payroll and workers' comp before your first hire
Most states require workers' comp once you have employees, and payroll software handles the tax filings. See options
Pick your state
What insurance costs
| Coverage | Median per month |
|---|---|
| General liability | $61 |
| Business owner's policy (BOP) | $100 |
| Workers' compensation | $140 |
| Commercial auto | $275 |
| Tools and equipment | $42 |
Source: Insureon, Jul 2026. Your price depends on your work, location and history.