What License Do You Need to Start a Roofing Company?

You need either a Limited or Unlimited Roofing License to start a roofing company. Illinois Law requires all roofers and qualifying parties to hold a state roofing contractor license. You will have to pay penalties and fines if your business operates without a valid license.

Understanding the licenses your company needs is important to operate legally. We'll help you understand the laws, requirements, and methods to get the required licenses for roofing companies. Stay with us to understand everything about legal operations in the roofing industry.

Do You Need a License to Offer Roofing Services in Illinois? 

You must have a roofing license before offering roofing services in Illinois. While some other states have lenient municipal requirements, Illinois enforces strict local roofing rules. You cannot perform any roofing job without the necessary Limited or Unlimited Roofing License.

Anyone paid to perform roofing must hold a state-issued roofing license. However, people working on their residence for minor roof repairs are exempt from holding independent licenses. Any third-party entity like a roofing company working on a roofer for some form of monetary payment requires a roofing license.

Working as an unlicensed contractor will lead to fines and penalties. According to the Illinois General Assembly, unlicensed roofing practices must pay a $200 penalty per violation, and $400 per subsequent violation that occurred within a year.

Which License Should You Get for a Roofing Company?

Ideally, you should get an Unlimited Roofing License for a roofing company. An Unlimited License allows you to work on commercial, industrial, and residential roofing projects. Whereas a Limited License only allows you to work on residential roofing projects.

An Unlimited License protects your business by giving you more opportunities. Limited Licenses are inherently constrained and are not ideal for long-term business plans. We would recommend an Unlimited License for the qualifying part.

How Much Does a Roofing Contractor License Cost in Illinois?

The application fee is only $125. However, the examination fee, renewal fee, insurance, and ot:

• Application Fees: Whether it’s a Limited or an Unlimited License, you must pay a standaher additional expenses add up to the cost. Here’s a brief breakdown of how much the roofing contractor license costsrd $125 application fee.
• Insurance Cost: Your insurance must include a minimum of $500,000 for General Liability Insurance, $250,000 for Property Damage Insurance, and Workers’ Compensation Insurance if you have employees.
• Get a Surety Bond: You must get a surety bond of $10,000 for a Limited License. Or, $25,000 for an Unlimited License. 
• License Renewal Fee: Your license will expire every December 31st of odd-numbered years. Meaning, this will be almost $125 for a two-year renewal and $62.50 per year.
• Restoration Fee: This only applies if there’s a lapse. It will include the renewal fee and $50 per year. 

The direct licensing fee isn’t high. However, the total cost is high due to bonds and insurance. You should understand the overall costs of starting a roofing company to make better choices.

What Are the Illinois Roofing Regulations?

The Illinois Department of Financial and Professional Regulation (IDFPR) oversees all roofing regulations. All Illinois roofing contractors must pass the state license examination to work on residential and commercial roofing needs.

The state law requires the roofing contractor's state license number and name appear on the building permit application and the building permit itself. Here’s a breakdown of everything you need to know about the Illinois roofing contractor license.

How to Get a Roofing Contractor License in Illinois

The first step to starting your own roofing company is getting a license. Here’s how to get a roofing contractor license in Illinois:

Get the Illinois State Roofing Contractor License

Head to the IDFPR official page online and apply for your roofing license. Choose between the types of roofing licenses:

• Limited Roofing License
• Unlimited Roofing License

A limited license is for residential projects of 8 units or fewer. Whereas, an unlimited license enables you to work on residential, commercial, and industrial projects. 

Requirements to Get an Illinois State Roofing Contractor License

There are various roofing license requirements that you must meet to get your roofing license:

• Fulfill the key requirements of an Illinois State Roofing Contractor License: 
• The local roofing company must pass the state exam for a limited or unlimited license. 
• Get a surety bond of $10,000 (Limited), or $25,000 (Unlimited).
• Get roofing insurance for $250,000 Property Damage, $500,000 General Liability, and Workers' Comp if applicable. 
• Once you meet all requirements, mail the IDFPR form with $125 fee. 

Frequently Asked Questions (FAQs)

 What type of license do you need to start a roofing company online?

You must apply for a roofing license. However, the license requirements vary from state to state. For example, in Illinois, you can apply for a Limited or Unlimited license via IDFPR. 

How Much Does It Cost to Start Your Roofing Company?

Starting a successful roofing company might cost around $15,000 to $30,000. Whereas, larger operations in urban areas might be around $50,000 in startup capital.

How Much Is the Roofing Business Owner's Salary?

New roofing business owner salaries range from $70,000 to $120,000 annually. Earnings depend on:

• Company size
• Location
• Overhead costs
• Profit margins

Owners of larger or well-established companies can earn over $150,000 per year.

How to Start a Roofing Business in California?

Get a C-39 Roofing Contractor License for roofing contractors from the CSLB. Ensure that you are at least 18, have 4 years of experience, and pass the trade and law exams. Then register your business, get liability insurance, and secure a local business license to work as a roofing contractor.

How to Get a Roofing License in California?

Enter the roofing market in California by applying for your license. Apply for the C-39 Roofing Contractor License through the CSLB. Ensure you're 18 or older, have 4 years of experience, and pass trade and law exams. Submit fingerprints, pay fees, and obtain liability insurance and a bond.

Bottom Line on Which License You Need for Roofing Companies

You can start a roofing company with a Limited or Unlimited roofing license. However, an Unlimited License is much better for businesses, because it gives you to tap into different types of roofing markets. Both licenses have similar initial costs and are required by law for both larger and small businesses.

Applying for a roofing contractor license in Illinois isn’t as intimidating as it seems. Fulfill all licensing and registration requirements as mentioned in this guide. Apply for the exam, pass it, and get your license to start working on any roofing project of your choice.

We know new business owners might find the process tedious or confusing. If you're worried about delays, join our Illinois roofing classes. We help you get a license, insurance, and roofing work, and prime your business for growth.