How to start a flooring business

Pick the materials you install best and say so. A tile setter and a carpet installer are different trades in the customer's eyes.

Whether flooring needs a license depends on the state and often the job size. Our general contractor licensing guide shows which states license contractors at all and where the dollar lines are; then check whether your state has a specialty license for flooring or tile.

If you work in homes built before 1978 and the job disturbs painted surfaces, such as removing painted baseboards or trim, the EPA lead rule can apply.

Older vinyl and resilient floors and their adhesives can contain asbestos. The EPA's guidance says not to sand or try to level asbestos flooring or its backing, never to use a power stripper on flooring that may contain asbestos, and, when asbestos flooring needs replacing, to install new floor covering over it if possible. If an old floor must come up, a trained and accredited asbestos professional should test and handle it.

Cutting tile and stone creates silica dust. OSHA's silica standard for construction lets employers use the dust controls in its Table 1, such as water or vacuum dust collection on saws, or measure exposure and pick their own controls.

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 flooring 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.

Your name goes on the truck, the invoices, the Google profile and the yard signs, so pick it once. The free flooring 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.

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.

Damaged walls and cabinets, floors that fail, and injuries from cutting tools are the claims. Ask your agent about general liability including completed work, commercial auto and tools cover. Stores and builders will ask for a certificate.

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.

• Measuring tools, a moisture meter and straightedges
• Saws: a miter saw, jamb saw, and a wet tile saw if you set tile
• Flooring nailer or stapler, spacers, pull bars and tapping blocks
• Floor scraper, leveling compound tools and a grinder with dust collection
• Knee pads and a vacuum

Tools for the materials you install are the spend; flooring itself is bought per job. Tile and hardwood need more specialized tools than click-together floors.

Price by the square foot for each material, then add removal of the old floor, subfloor prep, stairs, transitions and trim as their own lines. Order material with waste for cuts and patterns. The free labor rate calculator sets your hourly cost, the markup calculator covers material, and the profit margin calculator checks what is left.

• Flooring stores and builders. Steady install work while you build your own list.
• Remodelers and realtors. Kitchens, baths and listings need floors.
• Your own website. Koira builds one with photos by material and a page for each town.
• Follow up on bids. Koira nudges open estimates.

Take a deposit that covers material when the estimate is signed. Collect the balance at the walk-through with pay at the door, and ask for the review.

Add a helper for tear-out and prep, which frees you to install. Track your real square feet per day by material and feed it back into your prices.