How Much Does it Cost to Start a Roofing Company?

Starting a roofing company in Illinois costs between $8000 and $40000. These costs include registration, vehicle & materials, licensing, insurance, and equipment. Most business owners overlook these costs or grossly underestimate them, which leads to financial catastrophe.

We've broken down all the costs of starting a roofing business. You'll learn about registration, operational, and equipment costs. We'll also show you viable tips and tricks to save some of your investment by smart tracking and cost management.

Cost Breakdown of Starting a Roofing Company in Illinois

Here's a quick breakdown of all the startup costs associated with new roofing businesses:

Note: These costs vary based on your location, project scope, and area of expertise. For example, some small roofing businesses might have a variable number of people on their teams. Large companies might have to pay more for registration and framework establishment.

Business and Registration Costs

Starting your own roofing company requires some upfront registration costs. You'll have to register a Limited Liability Company (LLC) or become an S-Corp for Liability and Tax benefits. Here's a quick look at some of the registration costs for roofing businesses:

• LLC registration in Illinois: $150 filing fee
• EIN registration (IRS): Free
• DBA (Doing Business As): $50–$100 (if applicable)

You will have to think about the right organizational framework to protect your business. Most small businesses prefer an LLC because it is easier to manage and more affordable. Please analyze your business, current teams, growth, and structure to plan accordingly.

Roofing License Training & Exam

According to state laws, the qualifying party of any old or new business must have a valid roofing license. First of all, you have to choose a qualifying party, which is the person who will get the roofing license for your business. This person will have to prepare for, appear in, and pass the roofing exam.

Your qualifying party can choose between a Limited or Unlimited Roofing License. In simpler words, these licenses are:

• Limited License: For residential properties only that are 8 units or fewer.
• Unlimited License: For residential, industrial, and commercial roofing.

You can only take the necessary industrial, commercial, or residential roofing job when you have the necessary licenses. To get licensed, you must:

• Be at least 18 years old
• Pass the state roofing exam
• Carry liability and workers’ compensation insurance
• Apply with proof of experience or training

If you meet all the requirements, apply for the license. The costs of getting a license include:

• Exam & prep course: $800–$2,000 (depending on provider)
• Application fee: $125 (Limited and Unlimited)
• Roofing License Renewal: $125 ($62.50 Per Year)

You have to iron out these small nudges when you're making the business plan. While the costs of these licenses are minor, your business cannot operate without them. We can help you get your license through guidance and support from the best experts in the roofing industry.

Join our Illinois roofing classes today and set the archstone of your roofing business. Build connections that will drive your business to the top of the local business industry.

Insurance & Bonding

Every roofing business requires insurance and surety bonds. According to Illinois Law and the laws of various states, every roofing business owner must acquire multiple mandatory insurance policies, including:

• General Liability Insurance: Covers damage/injuries (usually $1M coverage)
• Workers’ Compensation: Required if you have employees
• Commercial Auto Insurance: For vehicles used in business
• Surety Bond: Required by the state ($10,000 for Limited and $25000 for Unlimited)

You can acquire these insurances through local unions and agencies. The costs of acquiring insurance include:

• Liability Insurance: $1,000–$4,000/year
• Workers’ Compensation: $1,500–$4,000/year (varies by payroll)
• Surety Bond Fee: $100–$250/year

You must also create a business bank account and get business insurance.

Small Tip: Create an FDIC-insured bank account to protect your investments. These banks give you automatic insurance in cases of fraud, theft, and bank failures. 

Equipment & Tools

A company cannot operate without the necessary roofing equipment. You must have the necessary equipment, which includes:

• Ladders, scaffolding, and harnesses
• Nail guns, hammers, roofing knives
• Compressors, generators
• Roofing materials (shingles, metal, underlayment)
• Dump trailer or dumpster rental
• Pickup truck or van

The cost of these materials varies based on brand, quality, and quantity. Furthermore, you might not need all the materials based on the type of jobs your company undertakes. For example, a roofing company that only does residential work won't need heavy equipment.

Nevertheless, here's an overview of how much roofing gear might cost your business:

• Basic gear for One Crew: $5,000–$10,000
• Vehicle (Used): $5,000–$10,000

You can rent or lease some of the high-end equipment to limit spending and maintenance costs.

Marketing & Branding

A successful roofing business needs a name, authority, and identity. And you can't get any of the three without a brand and marketing plan. Launching and maintaining a successful brand marketing campaign includes:

• Logo & brand design: $200–$500
• Website: $500–$2,000 (or use platforms like Wix or WordPress)
• Google Business Profile: Free
• Facebook Ads / Google Ads: $200–$1,000/month
• Yard signs, business cards, flyers: $300–$800

While you're doing this, remember that there is no universal marketing formula. You'll have to create a plan that works for your company and helps you get commercial roofing jobs. It also means choosing when and where you should prioritize one marketing channel over another. 

For example, focusing exclusively on Yard Signs might be a good idea when you start your roofing business. However, it might not have the same return on investment when you expand your operation. Analyze the roofing market and make informed marketing choices to avoid potential cost problems.

Permits & Legal Fees

Each city or county in Illinois may require additional contractor registration or local permits before work begins. In most cases, you will need a permit to do a roof in Illinois. You will also have to renew your legal business licenses in various localities.

The cost of these permits and legal operations is:

• Local permits per job: $50–$500, depending on the municipality
• Annual business licenses: $100–$300 in some areas

Please check with your local building authority to get the required permits for each type of roofing service.

Misc. Startup Costs

Apart from the usual costs of roofing tools, you will also have to think about things like:

• Accounting Software (QuickBooks, etc.): $25–$70/month
• CRM/Project Management Tools: $30–$150/month (Jobber, Acculynx)
• Uniforms/Branded Shirts: $200–$500
• Professional Photos or Drone: $300–$1,000
• Training for Crew: $500–$2,000

Getting the best roofing CRM can make invoicing, crew, and roofing project management easier. It reduces the burden on your business structure by increasing delegation efficiency and transparency. 

Training your crew and roofing contractors is vital for the growth of your business. The roofing industry experiences change like any other industry, and you must either adapt or become obsolete. You can only become a successful roofing company when you train your workers and encourage innovation.

Large vs Small Roofing Business Costs

The cost of starting your own roofing business changes based on the size and scope of the work. For example, small roofing businesses only need $8000 to $25000 as startup capital. Mid-sized new roofing companies need between $50000 and $250000, while large companies may require even more.

You must learn how to create a viable roofing business plan according to the size of your company. Reduce costs that do not impact your revenue or branding and maximize investments in areas that bring long-term stability and growth. As the owner, it's your responsibility to select and manage investment plans, growth avenues, and cost control.

Harrowing Statistics for New Roofing Startups

According to the Small Business Association, 56% of roofing startups fail within the first 3 years. Almost 96% of roofing businesses fail within the first 5 years. It's an uphill battle for most business owners because the odds are often stacked against them.

These failures are a given because most owners lack business acumen. Having the best roofing tools and equipment doesn't guarantee success and most new business owners don't understand this. You must have the tact to make the right decisions at the right time.

We know it sounds tiresome, but that's a fact that you must come to terms with. We teach you the tricks to keeping your business afloat and thriving. Join our classes today and safeguard your business and interests. 

FAQs on Startup Costs of Roofing Businesses

How long does it take to start a roofing company?

Setting up and establishing a roofing a roofing company can take 6 months to 2 years. This includes the time it takes to license and register your roofing company as an individual entity. In rare cases, a roofing company can take even longer to establish.

How long does it take to get licensed in Illinois?

It takes 2 to 3 months to get licensed in Illinois. You'll have to register for the roofing exam, 30 days before the exam date. You'll also have to get insurance and surety bonds after you pass the exam, which can take 2 to 3 weeks. 

How much do roofing businesses make?

A roofing business can make $100000 to over $1 Million per year. There are no accurate figures because every roofing business has a separate action and revenue plan. Nevertheless, most roofing businesses make 5 to 6 figures after excluding business expenses.

Bottom Line on the Costs of Starting a Roofing Business

A small roofing business startup costs anywhere between $8000 to $40000. Mid to large-sized roofing businesses require $50000 to $250000 based on their crew size, operation range, and services. These startup costs include costs for things like business registration, equipment, marketing, branding, and maintenance.

Analyze your plans and think about the things you absolutely need to start a roofing company. After that, remove redundant or second-priority items, like high-end specialized roofing materials. Focus on the 20% of things that can bring about an 80% impact on your business.

We teach you all these things in our roofing classes. Join our roofing classes and start your roofing business like a pro.