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

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.”

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 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.

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. 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.

MVACs are motor vehicle air conditioners. Under the definitions in 40 CFR 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. Note that a core test taken open book can’t count toward Universal, says the EPA.

EPA does not issue the cards. The approved program that tests you issues the card, and EPA can’t replace a lost one. Under the rule, 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, and some test online or remotely. One online program on that list is SkillCat. As of October 2026, SkillCat 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. 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. 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. The venting ban still holds. No one servicing equipment may knowingly vent refrigerant, under 40 CFR 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. 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. Guides that cite the January 1, 2026 install cutoff from EPA’s earlier rule 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.

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.

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.

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. 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. 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.

The company must employ a license holder full time in each permanent office, under Occupations Code 1302.252. 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.

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. The qualifier needs at least four full years of journey-level or higher work in the last ten, per the CSLB.

You need a license if the job needs a permit. The CSLB 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.

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. 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. 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. 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.

How Much Does It Cost to Start an HVAC Business?

As of October 2026, field service software vendor ServiceTitan 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.

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.

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 lends up to $50,000 to help small businesses start up. The SBA 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 goes up to $5 million through a lender.

The SBA 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 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. 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 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 says.

As of August 2026, U.S. companies no longer have to file beneficial ownership information (BOI) reports, per FinCEN.

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.

Insureon’s figures are medians for HVAC installation companies that got quotes through it. Most have fewer than five employees, per Insureon. 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.

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.
• 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. 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.

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. 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. The whole area shouldn’t be more than about 2 hours of driving time from your base, says Google.

Service areas show customers where you work, but distance still counts. “Local results are mainly based on relevance, distance, and popularity,” says Google. Distance is how far the business is from the searcher. So the map results, the 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. 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. Google treats HVAC as an urgent category, so HVAC pros get extra screening, including background checks on service professionals, per its screening page. 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. The badge is now called Google Verified. 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. 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. Our comparison shows when pay-per-lead ads beat pay-per-click 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 and how to optimize a 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 is what you pay for each call or form. Cost per booked job is what you pay for each one that turns into work.

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 page uses the same job-value math, and our 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.

The median wage for HVACR mechanics and installers was $61,010 in May 2025, per the BLS. 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 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.

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