---
title: "How to Start an HVAC Business: Licenses, EPA 608, Equipment and Getting Calls"
description: "How to start an HVAC business: the steps, EPA 608 and a state license table, sourced startup costs, insurance, and how to win your first customers."
url: https://kihanmarketing.com/start-an-hvac-business/
published: 2026-10-27
updated: 2026-10-27
author: "Atisam Elahi"
---

# How to Start an HVAC Business: Licenses, EPA 608, Equipment and Getting Calls

By [Atisam Elahi](https://kihanmarketing.com/atisam/), SEO Strategist

![HVAC technician in gray gloves and a navy work shirt servicing an outdoor air conditioner condenser beside a house, with a garden and a sunset over water behind](https://kihanmarketing.com/media/brand/hvac-1900.webp)

Here is how to start an HVAC business. Every tech who handles refrigerant needs EPA 608 certification. The company needs a state HVAC contractor license, or a licensed qualifier on staff. Then form the business, get insured and bonded, and stock a van with recovery gear. Last, get found, so other shops stop beating you on “hvac near me.”

**Sound familiar?**

- “Nothing made me more heated than searching ‘hvac near me’ while sitting in the office and seeing 3 businesses pop up before mine,” [one owner wrote](https://www.reddit.com/r/HVAC/comments/1h3w7v6/comment/lzu112i/) on r/HVAC.
- [A tech on r/HVAC](https://www.reddit.com/r/HVAC/comments/1h3w7v6/) finds plenty of work on Thumbtack, but says paying for leads is the painful part.
- “Invoicing, vehicles, insurance, taxes, chasing money, quoting jobs... it’s a full time job just to give you the luxury of working for yourself. And you can’t shut the phone off,” [another owner wrote](https://www.reddit.com/r/HVAC/comments/1plwocq/comment/ntx21l9/).
- [One owner](https://www.reddit.com/r/HVAC/comments/1g90nmt/comment/lt2mslq/) says cash flow is the hardest part of starting out, and warns that slow-paying accounts can wreck you.
- “To truly grow a customer base you 100% have to have open availability,” [a tech wrote](https://www.reddit.com/r/HVAC/comments/1g90nmt/comment/lt2xjw6/). That is hard while you are still on call for your boss.

**Key takeaway**

An EPA 608 card lets a tech work on refrigerant. It does not license the company. Most states also license HVAC contracting, and the company often needs a licensed qualifier on staff. Get both, plus insurance and certified recovery gear, before your first paid call. Then a verified [Google Business Profile](https://kihanmarketing.com/glossary/google-business-profile/), reviews and maintenance agreements carry you through the slow months.

## What Do You Need to Start an HVAC Business?

To start an HVAC business, you need two credentials before the first paid job. One is EPA 608 certification for anyone who handles refrigerant. The other is any HVAC license your state requires. Then come the legal business, insurance, a van and a way for local customers to find you.

1. **Get EPA 608 certified.** Pass the type that matches the gear you will service. Universal covers all of it.
2. **Check your state license.** Find the board, the license class and who must hold it.
3. **Form the business.** Pick a structure, register with your state and get a free EIN.
4. **Get insured and bonded.** Start with general liability, commercial auto and tools cover. Add workers’ comp when your state requires it.
5. **Open a supply house account.** The wholesaler needs proof of 608 before it sells you refrigerant.
6. **Equip the van.** Buy a certified recovery machine, a vacuum pump, gauges and a leak detector first.
7. **Get found.** Claim your Business Profile, ask for reviews, and apply for [Local Services Ads](https://kihanmarketing.com/glossary/local-services-ads/) once you are licensed and insured.

## Do You Need EPA 608 Certification?

Yes. Federal rules require EPA 608 certification for any tech who maintains, services, repairs or disposes of equipment that could release refrigerant. The rule sits in 40 CFR Part 82, Subpart F, under Section 608 of the Clean Air Act, per the [EPA](https://www.epa.gov/section608/section-608-technician-certification-requirements).

In plain words, you need it if you hook up hoses and gauges, or add or remove refrigerant. That is how the [EPA defines a technician](https://www.epa.gov/section608/section-608-technician-certification-requirements). Apprentices are exempt only while a certified tech closely and continually supervises them.

There are four types. Each test has a core section plus a section for each type, per EPA’s [test topics](https://www.epa.gov/section608/test-topics).

| Type | What it covers, per the rule | Rule |
| --- | --- | --- |
| Type I | Servicing small appliances | [40 CFR 82.161(a)(1)(i)](https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-82/subpart-F/section-82.161) |
| Type II | Servicing or disposing of medium-, high- or very high-pressure appliances, except small appliances, MVACs and MVAC-like appliances | [40 CFR 82.161(a)(1)(ii)](https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-82/subpart-F/section-82.161) |
| Type III | Servicing or disposing of low-pressure appliances | [40 CFR 82.161(a)(1)(iii)](https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-82/subpart-F/section-82.161) |
| Universal | Servicing all types of equipment | [40 CFR 82.161(a)(1)(iv)](https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-82/subpart-F/section-82.161) |

MVACs are motor vehicle air conditioners. Under the definitions in [40 CFR 82.152](https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-82/subpart-F/section-82.152), appliances that use R-22 or R-410A are high-pressure appliances. They fall under Type II unless they are small appliances. Room and window air conditioners sealed at the factory with five pounds or less of refrigerant are small appliances, under Type I.

Some Type I programs test by mail, per EPA’s [program list](https://www.epa.gov/section608/certification-programs-section-608-technicians). Note that a core test taken open book can’t count toward Universal, says the [EPA](https://www.epa.gov/section608/section-608-technician-certification-requirements).

EPA does not issue the cards. The approved program that tests you issues the card, and [EPA can’t replace a lost one](https://www.epa.gov/section608/steps-replacing-lost-section-608-technician-certification-card). Under [the rule](https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-82/subpart-F/section-82.161), each tech must keep a copy of the certificate at the place of business. Keep it until three years after the tech stops working as one.

EPA keeps a [list of approved programs](https://www.epa.gov/section608/certification-programs-section-608-technicians), and some test online or remotely. One online program on that list is SkillCat. As of October 2026, [SkillCat](https://www.skillcatapp.com/epa-608-certification-online) lists its 608 exam at $10 and sells it as a $10 a month subscription after a free trial.

### Can a new HVAC company buy refrigerant?

Only with proof. Refrigerant for stationary AC and refrigeration can be sold only to 608 certified techs, per EPA’s [sales restriction page](https://www.epa.gov/section608/refrigerant-sales-restriction). An employer can buy too, if it gives the wholesaler written evidence that it employs at least one certified tech. A Section 609 card can’t buy refrigerant meant for stationary equipment, whatever the container size.

So set up your supply house account with that proof on file before the first install. If you are the only certified tech, your card is the company’s buying power.

### What recovery equipment does EPA require?

Recovery and recycling machines must be tested to meet EPA’s standard. EPA has approved AHRI and UL to certify them, per its [recovery equipment page](https://www.epa.gov/section608/refrigerant-recovery-and-recycling-equipment-certification). Look for the AHRI or UL label before you buy. Machines made after January 1, 2017 follow Appendix B3 for non-flammable refrigerants, or Appendix B4 for flammable ones.

You no longer send EPA a form saying you own a recovery machine, says the [EPA](https://www.epa.gov/section608/refrigerant-recovery-and-recycling-equipment-certification). The venting ban still holds. No one servicing equipment may knowingly vent refrigerant, under [40 CFR 82.154](https://www.ecfr.gov/current/title-40/chapter-I/subchapter-C/part-82/subpart-F/section-82.154).

### What do the new refrigerant rules mean for installs?

Under the AIM Act, new home and light commercial AC and heat pump systems face a global warming potential (GWP) limit of 700. That limit starts January 1, 2025, per EPA’s [sector table](https://www.epa.gov/hfcs/technology-transitions-hfc-restrictions-sector). The same table shows no install deadline for systems whose listed parts were all made or imported before that date.

That change came from an EPA final rule in May 2026. It lets older stock of home and light commercial systems still be installed, per [EPA’s fact sheet](https://www.epa.gov/system/files/documents/2026-05/high-level-refrigerant-fact-sheet.pdf). Guides that cite the January 1, 2026 install cutoff from EPA’s [earlier rule](https://www.epa.gov/hfcs/regulatory-actions-technology-transitions) are out of date for those systems.

## What License Do You Need to Start an HVAC Business?

Most HVAC businesses need two layers: EPA 608 for the techs, and a state contractor license for the company. The federal 608 card does not let a company sell HVAC work. In addition, “some states and localities require HVAC technicians to be licensed,” says the [BLS](https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm).

Many states license the HVAC business through a board. The company must keep a licensed qualifier on record. Here is how eight states handle it, as of October 2026.

| State | Who licenses | License and experience | What the company needs | Bond or insurance minimum (as of October 2026) |
| --- | --- | --- | --- | --- |
| Texas | [TDLR, Air Conditioning and Refrigeration](https://www.tdlr.texas.gov/acr/contractor-apply.htm) | ACR Contractor Class A (any size) or Class B (up to 25 tons cooling, 1.5 million BTU/hr heating); 48 months of supervised work in the past 72 | A full-time license holder in each permanent office ( [Occupations Code 1302.252](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1302.htm) ) | General liability: Class A $300,000 per occurrence, $600,000 aggregate; Class B $100,000 and $200,000 ( [16 TAC 75.40](https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-75-40) ) |
| California | [CSLB, C-20 HVAC](https://www.cslb.ca.gov/about_us/library/licensing_classifications/Licensing_Classifications_Detail.aspx?Class=C20) | C-20: 4 full years at journey level or higher in the last 10 ( [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/before_applying_for_license.aspx) ) | A qualifying individual: the owner, an officer (RMO) or an employee (RME) | $25,000 contractor bond, plus a $25,000 qualifier bond for an RME, or an RMO owning under 10% ( [CSLB bonds](https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_requirements.aspx) ) |
| Florida | [DBPR Construction Industry Licensing Board](https://www.myfloridalicense.com/) | Class A (unlimited) or Class B (25 tons cooling, 500,000 Btu heating) ( [Fla. Stat. 489.105](http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0489/Sections/0489.105.html) ); 4 years, at least 1 as foreman ( [489.111](http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0489/Sections/0489.111.html) ) | A qualifying agent for the business ( [Fla. Stat. 489.119](http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0489/Sections/0489.119.html) ) | $100,000 public liability and $25,000 property damage ( [rule 61G4-15.003](https://www.law.cornell.edu/regulations/florida/Fla-Admin-Code-Ann-R-61G4-15-003) ) |
| Arizona | Registrar of Contractors ( [C-39 commercial](https://www.law.cornell.edu/regulations/arizona/Ariz-Admin-Code-SS-R4-9-102) , [R-39 residential](https://www.law.cornell.edu/regulations/arizona/Ariz-Admin-Code-SS-R4-9-103) ) | 4 years of trade experience, 2 of them in the last 10 ( [A.R.S. 32-1122](https://www.azleg.gov/ars/32/01122.htm) ) | A qualifying party who owns part of the license or is regularly employed ( [A.R.S. 32-1101](https://www.azleg.gov/ars/32/01101.htm) ) | Specialty residential bond of $1,000 to $7,500 ( [A.R.S. 32-1152](https://www.azleg.gov/ars/32/01152.htm) ) |
| North Carolina | [Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors](https://nclicensing.org/applicant-information/) | Heating Group 1, 2 or 3: 2 years (4,000 hours), up to half from schooling | At least one listed qualified person on active duty at each place of business ( [board FAQ](https://nclicensing.org/faq/) ) | See the board |
| Georgia | Division of Conditioned Air Contractors ( [Rule 121-3-.04](https://www.law.cornell.edu/regulations/georgia/Ga-Comp-R-Regs-R-121-3-.04) ) | Class I (up to 175,000 BTU heat, 60,000 BTU cool): 4 years, plus EPA certification and a load and duct design course. Class II (unrestricted): 5 years | A full-time licensee connected with the business, qualifying one business at a time ( [Rule 121-6-.01](https://www.law.cornell.edu/regulations/georgia/Ga-Comp-R-Regs-R-121-6-.01) ) | See the board |
| Washington | [Department of Labor & Industries](https://lni.wa.gov/licensing-permits/contractors/register-as-a-contractor/) | Contractor registration; HVAC is one of 63 specialties | Register with L&I as a specialty contractor | $15,000 bond and $250,000 combined single limit liability ( [L&I](https://lni.wa.gov/licensing-permits/contractors/register-as-a-contractor/) ) |
| Ohio (commercial work) | [Ohio Construction Industry Licensing Board](https://com.ohio.gov/divisions-and-programs/industrial-compliance/boards/ohio-construction-industry-licensing-board) | HVAC or refrigeration contractor license: 5 years as a tradesperson, plus an exam | State license for commercial work; local departments regulate residential HVAC | At least $500,000 contractor liability ( [OCILB](https://com.ohio.gov/wps/portal/gov/com/divisions-and-programs/industrial-compliance/boards/ohio-construction-industry-licensing-board/contractors-and-contracting-companies/contractors-contracting-companies) ) |

Rules change, so confirm the current rules with your state board before you sign a lease or buy a van. Your city or county may add its own business license and mechanical permits.

### How to start an HVAC business in Texas

In Texas, HVAC contracting runs through the Texas Department of Licensing and Regulation (TDLR). It issues the Air Conditioning and Refrigeration (ACR) Contractor license. Class A covers any size unit. Class B covers cooling systems of 25 tons and under, and heating systems of 1.5 million BTUs per hour and under, per [TDLR](https://www.tdlr.texas.gov/acr/contractor-apply.htm).

To apply, you need 48 months of ACR work in the past 72, under a licensed contractor. Or hold a technician certification for 12 months, plus 36 months of supervised work in the past 48. As of October 2026, the fee is $115 and the license lasts one year, per [TDLR](https://www.tdlr.texas.gov/acr/contractor-apply.htm). You must pass the exam within one year of filing.

Anyone who helps a licensed contractor with ACR work must register as a technician. Registered techs can’t advertise ACR services, per [TDLR](https://www.tdlr.texas.gov/acr/technician-apply.htm). After the exam, you file a certificate of insurance. It must meet the Class A or Class B minimums in the table, set by [16 TAC 75.40](https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-75-40).

The company must employ a license holder full time in each permanent office, under [Occupations Code 1302.252](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1302.htm). The company needs one when the contract is signed and the work is done. Without one, it “may not collect a fee or otherwise enforce the contract,” the statute says. Trucks must show the license number and company name in letters at least two inches high on both sides, under [16 TAC 75.71](https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-75-71).

### How to start an HVAC business in California

California HVAC contractors hold the C-20 license from the Contractors State License Board. C-20 covers warm-air heating, ventilating and air-conditioning systems, per the [CSLB](https://www.cslb.ca.gov/about_us/library/licensing_classifications/Licensing_Classifications_Detail.aspx?Class=C20). The qualifier needs at least four full years of journey-level or higher work in the last ten, per the [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/before_applying_for_license.aspx).

You need a license if the job needs a permit. The [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/before_applying_for_license.aspx) also requires one if a job uses extra workers or totals $1,000 or more in labor and materials, as of October 2026. As of October 2026, the first license fee is $200 for a sole owner and $350 for others, per the [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/Issuing_My_License.aspx).

One rule is unusual. Most California contractors with no employees can file a workers’ comp exemption. C-20 HVAC contractors can’t, per the [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/Issuing_My_License.aspx). So a one-person C-20 shop must carry workers’ comp from day one.

## Can You Start an HVAC Business Without a License?

Yes, in many states you can own an HVAC company without holding the license yourself. But the work must run under a licensed qualifier the company employs, often full time. And every tech who touches refrigerant still needs EPA 608.

- **Texas.** The license holder must be “an employee or owner” who works full time at the company, under [16 TAC 75.70](https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-75-70). One license covers one company and one office.
- **California.** The qualifier is an officer (RMO) or an employee (RME). An RME must be a real employee and can’t qualify another active license, per the [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/before_applying_for_license.aspx). One person can qualify at most three firms in a year.
- **Florida, Arizona, Georgia and North Carolina.** Each requires a qualifying agent, qualifying party or qualified person tied to the business, as the state table shows.

Say you are an investor with no HVAC background. Hire the qualifier before you sign a lease or buy a van. Put the deal in writing, and have a lawyer in your state review it. The risk is plain: the whole business rests on one license. In Texas, the company must tell TDLR within 30 days when that person leaves, under [16 TAC 75.71](https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-75-71).

## How Much Does It Cost to Start an HVAC Business?

As of October 2026, field service software vendor [ServiceTitan](https://www.servicetitan.com/blog/how-to-start-an-hvac-business) puts a lean HVAC start at about $10,000 to $50,000 in an October 2025 guide. That covers licensing, tools, vehicles, insurance and early marketing. None of the vendor numbers below cites a survey, so treat them as rough planning ranges. Retail prices for the refrigerant tools show where the money goes.

| Cost item | Published range or price | Who it applies to | Source (as of) |
| --- | --- | --- | --- |
| Lean startup, total | $10,000 to $50,000 | Vendor estimate, no line items | [ServiceTitan](https://www.servicetitan.com/blog/how-to-start-an-hvac-business) (2025, read October 2026) |
| Tools, gauges and a service vehicle | $5,000 to $15,000 | Vendor estimate; more if you buy new and branded | [Housecall Pro](https://www.housecallpro.com/resources/marketing/how-to/how-to-start-an-hvac-business/) (March 2026) |
| Licensing and permits | $500 to $2,000 | Vendor estimate; varies by state and county | [Housecall Pro](https://www.housecallpro.com/resources/marketing/how-to/how-to-start-an-hvac-business/) (March 2026) |
| Marketing and branding | $1,000 to $5,000 | Vendor estimate: website, logo, cards, van wrap | [Housecall Pro](https://www.housecallpro.com/resources/marketing/how-to/how-to-start-an-hvac-business/) (March 2026) |
| Chevrolet Express Cargo | From $42,200 MSRP | New van, base model | [chevrolet.com](https://www.chevrolet.com/commercial) (October 2026) |
| Ram ProMaster Cargo Van | From $45,325 MSRP | New van, base model | [ramtrucks.com](https://www.ramtrucks.com/ram-promaster.html) (October 2026) |
| Ford Transit Cargo Van | From $48,400 MSRP | New van, base model | [fordpro.com](https://www.fordpro.com/en-us/fleet-vehicles/transit/) (October 2026) |
| Recovery machine | $1,116.99 to $1,598.99 (Yellow Jacket); $1,313.99 (Fieldpiece MR45) | Two-port and 1/2 HP models | [Zoro](https://www.zoro.com/search?q=yellow%20jacket%20recovery%20machine) , [Zoro](https://www.zoro.com/search?q=fieldpiece%20mr45) (October 2026) |
| Recovery cylinder, 30 lb | $158.99 to $236.99 | One cylinder; most techs carry more than one | [Zoro](https://www.zoro.com/search?q=refrigerant%20recovery%20cylinder%2030%20lb) (October 2026) |
| Vacuum pump | $429.99 (NAVAC NP7DP) to $940.99 (Fieldpiece VP87) | Corded pumps rated 6 to 8 cubic feet per minute | [Zoro](https://www.zoro.com/search?q=navac%20vacuum%20pump) , [Zoro](https://www.zoro.com/search?q=fieldpiece%20vacuum%20pump) (October 2026) |
| Digital manifold | $425.99 (Testo 2-valve) to $914.99 (Fieldpiece 4-port) | Digital gauge sets | [Zoro](https://www.zoro.com/search?q=testo%20digital%20manifold) , [Zoro](https://www.zoro.com/search?q=fieldpiece%20digital%20manifold) (October 2026) |
| Micron gauge | $269.99 (Fieldpiece MG44) | Proves the vacuum before charging | [Zoro](https://www.zoro.com/fieldpiece-vacuum-gauge-brass-perm-sensor-mg44/i/G113343305/) (October 2026) |
| Leak detector | $232.99 to $762.99 | Heated diode and other sensor types | [Zoro](https://www.zoro.com/search?q=refrigerant%20leak%20detector%20heated%20diode) (October 2026) |
| Combustion analyzer | $1,319.99 (Fieldpiece) to $1,744.99 (Testo) | Shops that service gas furnaces | [Zoro](https://www.zoro.com/search?q=combustion%20analyzer%20fieldpiece) , [Zoro](https://www.zoro.com/search?q=testo%20310%20combustion%20analyzer) (October 2026) |
| Flaring tool | $107.00 to $159.99 | Manual eccentric flaring tools | [Zoro](https://www.zoro.com/search?q=flaring%20tool%20hvac%20eccentric) (October 2026) |
| Business registration | Less than $300 | Most cases; varies by state and structure | [SBA](https://www.sba.gov/counseling/launch-your-business/) (August 2026) |
| Job software | Jobber Core $49/mo; Housecall Pro Basic $79/mo; ServiceTitan publishes no prices | Monthly list prices; annual plans cost less | [Jobber](https://www.getjobber.com/pricing/) , [Housecall Pro](https://www.housecallpro.com/pricing/) , [ServiceTitan](https://www.servicetitan.com/pricing) (October 2026) |

A certified tech leaving a shop with a paid-off truck sits near the low end. A new van or an install crew moves you toward the top.

[**Already running HVAC calls under your own name?** Send the address and we send back what it actually ranks for today, from Search Console, with the gaps marked.](https://kihanmarketing.com/marketing-audit/)

## Can You Start an HVAC Business With Little Money?

Yes, but not with nothing. The license, insurance and recovery gear cost money before the first call. A lean HVAC start looks like this:

- **Lead with service and repair.** No-cool and no-heat calls usually pay when the job is done. A full system change-out means you buy the equipment first and wait to be paid.
- **Run one truck.** Use the truck you have if it carries tools and cylinders safely. Tell your insurer it is a work vehicle.
- **Get paid on site.** Take payment at the door on service calls, and take a deposit before you order equipment.

As of October 2026, the [SBA microloan program](https://www.sba.gov/loans/microloans/) lends up to $50,000 to help small businesses start up. The [SBA](https://www.sba.gov/loans/microloans/) puts the average microloan at about $13,000 and says it can pay for machinery and equipment. That includes the recovery machine, vacuum pump and gauges priced above. It can’t pay off old debts or buy real estate.

A bigger start, such as an install crew with a second van, may need more. As of October 2026, an [SBA 7(a) loan](https://www.sba.gov/loans/7a-loans/) goes up to $5 million through a lender.

The [SBA](https://www.sba.gov/counseling/plan-your-business/) gives the break-even formula: fixed costs divided by the price per unit, less the variable cost per unit. For an HVAC shop, treat one service call as the unit, and round the answer up to a whole call.

**How many service calls do you need to break even?**

- Monthly fixed costs (van payment, insurance, phone, software)
- Average price per service call
- Average parts, refrigerant and fuel cost per call

It divides your fixed costs by what each call leaves after parts and fuel.

## How Do You Set Up the Business?

Set up the legal business before the first invoice. Pick a structure, register with your state, get an EIN (Employer Identification Number) and open a business bank account. In California, the structure also sets the license fee, as the California section shows.

A sole proprietorship is not a separate entity, so you can be held personally liable for its debts, per the [SBA](https://www.sba.gov/counseling/launch-your-business/). An LLC protects you from personal liability in most cases. Its members still pay self-employment tax.

If you form an LLC or a corporation, file with your secretary of state first. Then get an EIN from the [IRS](https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number) for free. You never have to pay a fee for an EIN. Once you have it, you can open a business bank account, the [SBA](https://www.sba.gov/counseling/launch-your-business/) says.

As of August 2026, U.S. companies no longer have to file beneficial ownership information (BOI) reports, per [FinCEN](https://www.fincen.gov/boi).

## What Insurance Does an HVAC Business Need?

An HVAC business needs general liability, commercial auto and tools cover from the first job. Add workers’ comp when state law requires it, and a surety bond where the license calls for one.

Your state may set a floor. Texas, Florida, Ohio and Washington all set liability minimums for contractors, as the state table shows.

| Coverage | What it covers for an HVAC shop | Insureon median (as of August 2026) |
| --- | --- | --- |
| General liability | Damage or injury your work causes at a customer’s home | [$101 per month](https://www.insureon.com/installation-business-insurance/hvac-installation/cost) |
| Workers’ comp | Injured employees; set by state law | [$182 per month](https://www.insureon.com/installation-business-insurance/hvac-installation/cost) |
| Commercial auto | The service van | [$286 per month](https://www.insureon.com/installation-business-insurance/hvac-installation/cost) |
| Tools and equipment | Recovery machines, gauges and analyzers that ride in the van | [$41 per month](https://www.insureon.com/installation-business-insurance/hvac-installation/cost) |
| Commercial umbrella | Extra limits above the other policies | [$81 per month](https://www.insureon.com/installation-business-insurance/hvac-installation/cost) |
| Surety bond | What your state requires for the license | [$9 per month](https://www.insureon.com/installation-business-insurance/hvac-installation/cost) |

Insureon’s figures are medians for HVAC installation companies that got quotes through it. Most have fewer than five employees, per [Insureon](https://www.insureon.com/installation-business-insurance/hvac-installation/cost). As of August 2026, the general liability median is for $1 million per occurrence and $2 million aggregate limits.

Tools cover matters in HVAC because one recovery machine and a set of digital gauges can cost thousands. As of August 2026, items worth over $2,500 may need to be listed on the policy one by one, per [Insureon](https://www.insureon.com/installation-business-insurance/hvac-installation/cost).

Before your first paid job, check these off.

- Every tech who touches refrigerant holds a 608 card, with a copy kept at the business
- The contractor license, yours or your qualifier’s, is active and tied to the company
- Any state license bond is filed
- You hold a general liability certificate you can show customers and Google
- The van has a commercial auto policy
- Workers’ comp is in place, or your exemption is on file (no exemption for a California C-20)
- The recovery machine carries the AHRI or UL certification label
- You know how your city handles mechanical permits and inspections

## What Equipment Do You Need to Start an HVAC Business?

New HVAC businesses need refrigerant tools first: a certified recovery machine, recovery cylinders, a vacuum pump, a micron gauge, a manifold and a leak detector. Heating work adds a combustion analyzer.

- **Recovery machine and cylinders.** You can’t vent refrigerant, so it goes into a cylinder. EPA’s core exam covers the risks of filling cylinders more than 80 percent full, per its [test topics](https://www.epa.gov/section608/test-topics).
- **Vacuum pump and micron gauge.** The pump pulls the system down. The gauge proves the vacuum before you charge.
- **Digital manifold and leak detector.** Read the pressures, then find the leak before you add refrigerant.
- **Combustion analyzer.** A heating tune-up checks gas pressure, burner combustion and the heat exchanger, per [ENERGY STAR](https://www.energystar.gov/saveathome/heating-cooling/maintenance-checklist). The analyzer shows how the burner runs.
- **Flaring and swaging tools.** For copper line sets and flare fittings.

Pick your setup by the work you will take first.

### Residential service and repair van

Tune-ups, no-cool and no-heat calls, and small repairs. Most jobs pay when done.

- Best for a certified tech going out alone
- Core kit: recovery machine, cylinders, vacuum pump, micron gauge, digital manifold, leak detector, combustion analyzer

### Install crew

System change-outs and new systems. The tickets are bigger, but you buy the equipment before you get paid.

- Best for a shop with two or more techs and cash in reserve
- Core kit: the service kit, plus brazing gear, nitrogen, flaring and swaging tools, and a second van or trailer

### Light commercial and refrigeration

Rooftop units, walk-in coolers and repeat work for property managers. In Texas, larger units need Class A, and refrigeration has its own endorsement, per [TDLR](https://www.tdlr.texas.gov/acr/contractor-apply.htm).

- Best for a tech with commercial experience
- Core kit: the service kit, plus more recovery cylinders and a larger recovery machine

## How Do New HVAC Companies Get Customers?

New HVAC companies get customers from seasonal tune-ups, a Google Business Profile set up as a service-area business, and reviews. Local Services Ads help once screening clears. Maintenance agreements keep the calendar full when the weather is mild.

“Contractors get busy once summer and winter come, so it’s best to check the cooling system in the spring and the heating system in the fall,” says [ENERGY STAR](https://www.energystar.gov/saveathome/heating-cooling/maintenance-checklist). That gives a new shop two pushes a year: cooling tune-ups in spring and heating tune-ups in fall. Offer a maintenance agreement on every visit. Those visits fill the slow months and build a list of customers who call you first when a system fails.

Paid lead sites like Thumbtack can fill a mild month fast, but you pay for every lead. A maintenance agreement customer costs nothing to book again next spring and fall. Your Business Profile and reviews keep working through every heat wave and cold snap.

### How should an HVAC company set up its Google Business Profile?

An HVAC company should set up its Google Business Profile as a service-area business if customers don’t visit the shop. If you don’t serve customers at your address, remove it and list only your service area. As of October 2026, you can set up to 20 service areas by city or postal code, per [Google](https://support.google.com/business/answer/9157481?hl=en). The whole area shouldn’t be more than about 2 hours of driving time from your base, says [Google](https://support.google.com/business/answer/3038177?hl=en).

Service areas show customers where you work, but distance still counts. “Local results are mainly based on relevance, distance, and popularity,” says [Google](https://support.google.com/business/answer/7091?hl=en). Distance is how far the business is from the searcher. So the map results, the [local pack](https://kihanmarketing.com/glossary/local-pack/), favor shops near the person searching. A shop on one edge of a metro can show up less for “ac repair” across town, even inside its service area.

“More reviews and positive ratings can help your business’s local ranking,” [Google says](https://support.google.com/business/answer/7091?hl=en). Ask after every tune-up.

### Can a new HVAC company use Local Services Ads?

Yes, once it passes Google’s screening. HVAC is a listed US category, per [Google](https://support.google.com/localservices/answer/6224841?hl=en). Google treats HVAC as an urgent category, so HVAC pros get extra screening, including background checks on service professionals, per its [screening page](https://support.google.com/localservices/answer/12174778?hl=en). For select advertisers, Google may also check business registration, liability insurance and state licenses. You need a public, verified Business Profile.

As of October 2026, screening takes 3 to 4 weeks on average after you send your documents, per [Google](https://support.google.com/localservices/answer/12174778?hl=en). The badge is now called [Google Verified](https://support.google.com/localservices/answer/16498018?hl=en). Google is also moving Local Services Ads into Google Ads. HVAC was in the first phase, which began in August 2026 for select advertisers, per [Google](https://support.google.com/google-ads/answer/17213585?hl=en). Until campaign creation moves into Google Ads, Google says to keep setting up new campaigns and accounts at g.co/localservices, per its [migration page](https://support.google.com/google-ads/answer/17213585?hl=en). Our comparison shows [when pay-per-lead ads beat pay-per-click ads](https://kihanmarketing.com/local-service-ads-vs-google-ads/).

### Are property managers good customers for a new HVAC company?

They can be. A property manager needs filter changes, tune-ups and no-cool calls across many units, all year. One account can mean steady repeat work and a first step into light commercial. The trade-off is payment: you invoice and wait. Keep home service calls coming, so one slow check doesn’t stall the shop.

### Your first-month checklist

- Claim and verify your Business Profile as a service-area business
- Set your real service areas, up to 20
- Ask every customer for a review
- Book spring and fall tune-ups, and offer an agreement at each one
- Apply for Local Services Ads once the license and insurance are in place
- Put the license number on the van where your state requires it

For the full playbook, read our [guide to ranking a home service company on Google](https://kihanmarketing.com/local-seo-guide-home-services/) and [how to optimize a Google Business Profile](https://kihanmarketing.com/how-to-optimize-google-business-profile/).

## How Should a New HVAC Company Set a Marketing Budget?

Set it from the jobs you need, not from a fixed percent of revenue. No rule fits a new shop. Start with what a job is worth, how many calls you book, and how many jobs you need.

Say you need 30 paid service calls a month to cover the van, insurance and software. You book about half the leads you get. So you need about 60 leads, and they come slower in the mild weeks between cooling and heating season. A [cost per lead](https://kihanmarketing.com/glossary/cost-per-lead/) is what you pay for each call or form. Cost per booked job is what you pay for each one that turns into work.

**Cost per booked job calculator**

- Monthly marketing spend
- Jobs booked from that marketing that month

It divides what you spent by the jobs it booked.

Compare that with what a service call earns after parts, refrigerant and labor. Then compare it with what an agreement customer brings back each spring and fall. Our [home services marketing](https://kihanmarketing.com/home-services-marketing/) page uses the same job-value math, and our [HVAC marketing](https://kihanmarketing.com/home-services-marketing/hvac-marketing/) page covers spend once the shop is running.

## Is an HVAC Business Profitable?

An HVAC business can be profitable, but no public source gives a reliable margin for a new shop. What the data does show is steady demand for the work.

**11%** is the projected job growth for HVACR (heating, ventilation, air conditioning and refrigeration) mechanics and installers from 2025 to 2035, much faster than average.

[Source: BLS, August 2026](https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm)

**About 40,600** openings for HVACR mechanics and installers are projected each year.

[Source: BLS, August 2026](https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm)

**About 440,900** jobs were held by HVACR mechanics and installers in 2025.

[Source: BLS, August 2026](https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm)

The median wage for HVACR mechanics and installers was $61,010 in May 2025, per the [BLS](https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm). That is employee pay. BLS wage data leave out the self-employed, so it says nothing about what owners earn.

Going out on your own puts you in a small group. The [BLS](https://www.bls.gov/ooh/installation-maintenance-and-repair/heating-air-conditioning-and-refrigeration-mechanics-and-installers.htm) counts 6% of these workers as self-employed. Most, 68%, work for plumbing, heating and air-conditioning contractors.

Profit on paper is not cash in the bank. Slow-paying accounts, equipment you buy before an install, and a mild month can all leave you short. Collect on service calls, take deposits on installs, and keep a reserve for spring and fall.

**Quick check: are you ready to go out on your own?**

1. Do you hold the license your state requires for an HVAC company, or have a qualifier lined up?
2. Does every tech who will touch refrigerant hold EPA 608 certification?
3. Have you run HVAC calls on your own, from diagnosis to payment?
4. Could you cover two slow months of van, insurance and phone bills?
5. Do you have a plan to sell maintenance agreements in spring and fall?

0 to 1 yesNot yet. Start with the license and EPA 608 sections above.2 to 3 yesGetting close. If question 1 or 2 is a no, fix that first.4 to 5 yesNearly ready. If question 1 or 2 is a no, you aren’t ready for paid work yet. Otherwise, work through the before-your-first-paid-job checklist, then start booking calls.

**Why take this from us**

Atisam Elahi wrote this guide. He is an SEO Strategist at Kihan Marketing. He works on SEO for roofing and other local service businesses, aimed at turning search visibility into calls and booked jobs. We offer website, Google Business Profile and local SEO work to HVAC, plumbing and electrical companies. For an Austin roofing company we work with, organic clicks for July 4 to September 29 rose from 1,032 in 2025 to 2,127 in 2026. We are a marketing team, not HVAC techs. The licensing facts here come from the EPA and the state boards linked in each section.

[HVAC MarketingHow HVAC companies plan for emergency, replacement and maintenance work](https://kihanmarketing.com/home-services-marketing/hvac-marketing/)

## What to Do First

1. **Call your state board.** Use the table above. Ask which license class fits your work and who must hold it.
2. **Price the first year before you give notice.** Get liability, auto and comp quotes, then run the break-even calculator.
3. **Claim your Business Profile early.** Your first tune-up customers can then leave reviews in week one.

## Questions About How to Start an HVAC Business

How long does it take to start an HVAC business?The license takes the longest: it depends on the state, and it usually takes years of supervised work. Once you qualify, forming the business, getting insured and equipping the van can run at the same time. Local Services Ads screening takes 3 to 4 weeks on average after you send documents, per [Google](https://support.google.com/localservices/answer/12174778?hl=en). Texas asks for 48 months in the past 72, per [TDLR](https://www.tdlr.texas.gov/acr/contractor-apply.htm). California asks for four years in the last ten, per the [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/before_applying_for_license.aspx). Georgia asks for four years for Class I and five for Class II, under [Rule 121-3-.04](https://www.law.cornell.edu/regulations/georgia/Ga-Comp-R-Regs-R-121-3-.04). North Carolina asks for 2 years, or 4,000 hours, per its [board](https://nclicensing.org/applicant-information/). EPA 608 is a test, not a training program, and some approved programs test online, per the [EPA](https://www.epa.gov/section608/certification-programs-section-608-technicians).Does EPA 608 certification expire?No. Section 608 credentials do not expire, per the [EPA](https://www.epa.gov/section608/section-608-technician-certification-requirements). If you lose the card, contact the program that issued it. EPA can’t replace it. If that program has closed, send your records or a copy of the old card to ESCO Institute or Ferris State for a new one. With no proof, contact EPA about the closed program. If none of that works, you must retake the test, per [EPA](https://www.epa.gov/section608/steps-replacing-lost-section-608-technician-certification-card).Do you need to be bonded to start an HVAC business?Often, yes, as part of the state license. As of October 2026, California requires a $25,000 contractor bond, per the [CSLB](https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_requirements.aspx). Washington requires a $15,000 bond for specialty contractors as of October 2026, per [L&I](https://lni.wa.gov/licensing-permits/contractors/register-as-a-contractor/). The bond amount is not what you pay. As of August 2026, Insureon’s median for a surety bond is $9 per month, per [Insureon](https://www.insureon.com/installation-business-insurance/hvac-installation/cost).Do you need workers’ comp as a one-person HVAC shop?It depends on the state. Workers’ comp is set by state law. A California C-20 contractor must carry it even with no employees, per the [CSLB](https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/Issuing_My_License.aspx). Elsewhere, ask your state workers’ comp board whether a sole owner needs it, and plan on it once you hire.When is the best time of year to start an HVAC business?Spring or fall, before the rush. Contractors get busy once summer and winter come, says [ENERGY STAR](https://www.energystar.gov/saveathome/heating-cooling/maintenance-checklist). Opening in a mild season lets you sell tune-ups and agreements first. Then you are ready when the first heat wave or cold snap hits.Do you need an LLC to start an HVAC business?No, but it helps. An LLC protects you from personal liability in most cases, per the [SBA](https://www.sba.gov/counseling/launch-your-business/). A sole proprietorship leaves you personally liable for business debts. In California, a sole owner pays a lower first CSLB license fee than other business types, so price both before you choose.[**Want local customers to find your new HVAC company?** Send the address and we send back what it actually ranks for today, from Search Console, with the gaps marked.](https://kihanmarketing.com/marketing-audit/)