How to start a home inspection business

Home inspection is a one-person business that runs on a license, a clear report and agents who trust you. Here is how to start one, in order.

10 stepsIn the order to do them
Local rulesWho to ask, named
Free toolsName, plan and price

A home inspector walks a house for a buyer or seller and writes a report on its condition. Most states license home inspectors, with training hours, an exam and insurance. The work is mostly booked by buyers on contract deadlines, often on an agent's recommendation. Many inspectors come from construction trades.

Key takeaways
  • Most states license home inspectors. Check training, exam and insurance rules first.
  • Errors and omissions insurance is often required, and always worth having.
  • Your report is your product. Pick software that makes it clear.
  • Take the fee when the buyer books.

1. Decide what you will offer

InspectionWho asksNotes
Buyer inspectionsBuyers, agentsThe core of the business
Pre-listing inspectionsSellers, agentsFewer surprises at closing
4-point and wind mitigationInsurers, homeownersState-specific forms
New construction phasesBuyersPre-drywall and final
Add-ons: radon, sewer scope, termiteBuyersEach may need its own license

Add-ons raise the ticket, but some, like radon and termite, have their own licensing in many states.

2. Check the license and permits

Most states license home inspectors, usually with pre-licensing training hours, a national or state exam and proof of insurance. Some states have no license at all. Ask your state's real estate or licensing board what applies, and whether your company name must appear on the license.

Where to askSearch your state's name plus "contractor licensing board" and "home inspector license", and call your city or county permit office. Ask them, in plain words: what work can I do without a license, and what work needs one.

3. 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 home inspection 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.

4. 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 home inspection 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.

5. 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.

Inspectors are sued over things they missed. Ask your agent about errors and omissions insurance, general liability for damage during the inspection, and commercial auto.

6. 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.

  • Flashlight, moisture meter and outlet tester
  • Ladder that reaches roof edges and attic hatches
  • Thermal camera and a drone, if you offer them
  • Coveralls, respirator and knee pads for crawl spaces
  • Tablet with report software

Training and the license are the first costs, then insurance and report software. Tools are modest unless you add thermal imaging or drone roof checks.

7. Set your prices

Build a fee table from your hours on site and on the report, by home size and age, with add-ons priced on their own. Our guide to pricing home inspections has a worked example, and the free home inspection cost calculator shows what buyers see.

8. Find your first customers

Set your deposit to the full fee so the buyer signs and pays when they book. Referrals ask happy buyers to pass your name on.

10. Grow past one truck

A second inspector lets you take two houses a day and a weekend schedule. Read how home inspectors run on Koira.

Sources

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.

FAQ

Do I need a license to be a home inspector?

In most states, yes, with training hours, an exam and insurance. A few states have no license. Ask your state's licensing board.

What insurance does a home inspector need?

Errors and omissions insurance for missed defects, general liability for damage during the visit, and commercial auto.

How do home inspectors find clients?

Mostly through agents, plus buyers who search online and read reviews.

When should I collect the inspection fee?

At booking. Some deals fall through, and buyers on a deadline will pay up front.

We know what works. Leave it to Koira.

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How to Start a Home Inspection Business: License, Tools, Agents | Koira