A carpentry business can be finish work for homeowners (trim, doors, built-ins, cabinet installs), subcontract work for remodelers and builders, or both. Homeowner work pays more per hour but comes one job at a time. Builder work is steadier but priced tight. Most carpenters start with a mix and lean toward whichever keeps the schedule full.
- Check your state's contractor licensing; carpentry above a dollar amount often needs a license or registration.
- In homes built before 1978, cutting painted trim can bring in the EPA lead rule.
- Track your own hours per door and per foot of trim. That is how you price everything after.
- Set a minimum. One door still means a trip, setup and cleanup.
1. Decide what you will offer
| Work | Who asks | Notes |
|---|---|---|
| Trim, crown and baseboard | Homeowners, painters | Priced by the foot once you know your speed |
| Interior and exterior doors | Homeowners, property managers | Priced per door |
| Cabinet installs | Homeowners, kitchen shops | Priced per linear foot or per box |
| Built-ins and shelving | Homeowners | Priced per job from hours and material |
| Punch lists and repairs | Remodelers, realtors | Small, quick, set a minimum |
Kitchen and bath showrooms sell cabinets they do not install. Ask who they send installs to.
2. Check the license and permits
Carpentry often falls under general contractor or home improvement licensing, usually above a dollar amount, and some cities require permits for structural work. Our general contractor licensing guide shows how each state treats contractor work.
3. Know the rules for older homes
The EPA's lead rule covers firms and people who disturb painted surfaces in houses, apartments and child-occupied facilities built before 1978. Replacing old trim, doors and windows in those homes disturbs paint, so get your firm certified if that is your market. The EPA also suggests an asbestos inspection by an accredited professional before remodeling a home.
4. Register the business and set up taxes
The SBA lists the launch steps in this order: pick a location, choose a structure, choose a name, register, get federal and state tax ID numbers, apply for licenses and permits, open a business bank account, and get insurance. For a carpentry business working out of a truck, the location is usually your home address and the area you will serve.
- Structure. A sole proprietorship is the simplest. An LLC keeps the business separate on paper. Ask an accountant which fits your state and your plans.
- Tax ID. The IRS gives out an employer identification number (EIN) online, and says you never have to pay a fee for one. Websites that charge for an EIN are not the IRS.
- Self-employment tax. The IRS lists the self-employment tax rate as 15.3%: 12.4% for Social Security and 2.9% for Medicare. Income tax comes on top, so set money aside from every job.
- Bank account. Open it before the first payment lands, so every dollar in and out is easy to find at tax time.
5. Pick a name customers can say and find
Your name goes on the truck, the invoices, the Google profile and the yard signs, so pick it once. The free carpentry name generator gives 36 ideas for your town and style, each with a domain idea, and lists the checks to run before you commit: your state's business name search, a federal trademark search and the domain itself.
6. Get insured before the first job
The SBA describes general liability insurance as cover for financial loss from bodily injury, property damage, medical expenses and defending lawsuits. It says businesses with employees are required to carry workers' compensation, unemployment and disability insurance, and some states ask for more.
Carpentry claims are scratched floors, a cabinet that falls, and injuries from saws. Ask your agent about general liability with completed work, tools and equipment cover, commercial auto, and workers' compensation once you hire.
7. Gear up and add up your startup costs
No total here on purpose. What you spend depends on what you already own, new or used, and how much work you plan to take on. Price your own list with a local supplier, then put the numbers in the startup cost table of the free business plan generator, which adds them up for you.
- Miter saw with stand, table saw and track or circular saw
- Finish nailers, brad nailers and a quiet compressor
- Levels, a laser, coping saw and measuring tools
- Clamps, jigs and a cabinet jack or lift
- Dust control, drop cloths and floor protection
Most carpenters already own the core tools. A trailer or van set up as a shop is the biggest step up, and pays off when every tool is on the job.
8. Set your prices
Price by the hour, by the foot or by the piece, but build every number from your own tracked hours at a loaded rate. Our guide to pricing carpentry jobs walks through a trim package, and the free cabinet installation cost calculator, board foot calculator and labor rate calculator do the math.
9. Find your first customers
- Painters and remodelers. They need trim and doors done before they finish.
- Kitchen showrooms. They sell cabinets and need installers.
- Homeowners with photos. Koira drafts the estimate from the photos and your price list.
- Realtors. Punch lists before a sale.
10. Get paid and keep the customer
Take a deposit before you buy material, and bill bigger jobs in stages with invoices as you finish. Koira follows up on quiet bids on day two and day four.
11. Grow past one truck
A helper who can cut and carry doubles what you set in a day. Read how carpenters run on Koira.
Sources
- SBA: Launch your business (the launch steps), checked October 8, 2026
- SBA: Get business insurance, checked October 8, 2026
- IRS: Get an employer identification number, checked October 8, 2026
- IRS: Self-employment tax (Social Security and Medicare taxes), checked October 8, 2026
- EPA: Renovation, Repair and Painting Program, contractors, checked October 8, 2026
- EPA: Protect your family from exposures to asbestos, checked October 8, 2026
Last checked October 8, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.