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Want to be a Contractor in Texas? Learn How

Been thinking about starting your own business?  

Are you a Master Electrician wanting to work for yourself?

Do you want to start a business but don't know where to start?

Here is a step by step on how to start your electrical contractor business in Texas.

Oh the American dream.  It's free and perfectly legal to dream but to make those dreams a reality you need to check out the facts.  There are many things to consider before you start working for yourself as a contractor electrician.  Not everyone is allowed to charge customers for electrical work and there are laws and regulations to follow when working for yourself.

Below is the application for the Electrical Contractor license (EC), TDLR will not accept an incomplete application, so make sure you have everything filled out.  Also, make sure to make copies of supporting documentation because they will not return those to you.  There is a fee of $110 that is non-refundable, you can make a payment by check or money order.

You will need:

  • Business Name
  • Federal ID Number - You can get one from the IRS HERE.
  • General Liability Insurance- Electrical Contractors are required to have at least the minimum general liability insurance coverage at all times to satisfy proof of financial responsibility.
  • Worker's Compensation Insurance- Or you can opt not to have it.
  • Texas Master Electrician Assigned to this Contractor-  That can be you or you can have a partner or employee.

Application for the Electrical Contractor License Application

Don't forget that it is not allowed and you can be fined if you are a journeyman electrician working on your own.  If you have the necessary hours and pass your Master Electrical Exam, then you can apply for your contractor license and start working for yourself.  (We can help you apply for the Master Electrical License and help you prepare for the exam)


Here is a quick re-cap on an older blog we posted on how to open a business in Texas.

  • Choose a business structure: Sole Proprietor, Corporation, Partnership, etc.
  • Register your business with the Texas Secretary of State or Country Clerk Office.
  • Apply for Federal Employment Identification Number with the IRS.
  • Texas Taxes: This can include Franchise, Sales Tax, Employment Taxes, etc.
  • Licenses, Permits, Registration: TDLR Electrical Contractor Application
  • If employing people, register with Texas Workforce Commission
  • Set up a business bank

Here is the link for the full blog.



As always, I'm available if you have any questions with applications, starting businesses and even running them.  I hope this blog helps you make your dream a reality and just remember that we are here to help.    Cheers to your success!


Nancy Valdez


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Posted in Business, Contractors.