Starting Your Roofing Business in Illinois: From Licensing to Building Your Brand

You'll need a dream, a license, some tools, a crew, and a plan to start your roofing business in Illinois. I know it might all seem confusing, but with the right plan, you can start and run a good roofing company from point zero. We're a team of experts helping dreamers like you kickstart their roofing businesses.

Today, we'll give you the blueprints to starting your very own business. You'll learn about business structure, types of services, licensing process, and business administration. It's a custom-tailored master class for every aspiring roofer.

Short Version of How to Start a Roofing Business

We know you're probably itching to start your company, so we'll start with the shortest version. Here's how you can start a roofing business in 6 simple steps:

• Register Your Business: Pick a structure (sole proprietorship, LLC, or corporation) and register it with the Illinois Secretary of State. If you form an LLC or corporation, the roofing license is issued to the company, so this step comes first.
• Get an Illinois Roofing License: You can't operate a roofing business without a Limited or Unlimited license. Getting an Illinois roofing license takes a passed exam, insurance, and a surety bond.
• Develop a Business Plan: You need to think about the type of services you'll be providing and the price that you'll be charging for them. You'll have to conduct market surveys to gauge the competitive price.
• Securing Funds and Insurance: A business can't work without money, and you'll have to find lenders. You might also have to arrange insurance, which doesn't come cheap.
• Teams and Tools: Roofing companies require skilled or unskilled labor and tools. You'll have to hire the workers and buy the tools. You can avoid some of the higher-cost tools in the initial phases by focusing only on crucial tools.
• Branding Your Roofing Company: Use physical and digital means to spread and brand your business. Some of the things you can do are social media posts, creating a website, and advertising campaigns.

With these basics nailed down, you can start your own roofing company.

Detailed: How to Start a Roofing Company

Operating a new roofing company isn't just about getting nails and hammers to work on a roof all day. As a business owner, you have to make the right choices from registration to branding. We'll walk you through all the steps:

1. Register Your Business with the Illinois Secretary of State (Difficulty 2)

Before the state will license your company, your business has to legally exist. If you form an LLC or a corporation, the roofing license is issued to the company and not to you personally, so registration is your real first move.

Pick your structure first. Most new roofers go with a sole proprietorship or an LLC, and we break down all the structure options later in the business plan section. Once you've picked one, file the paperwork with the Illinois Secretary of State.

One detail trips up almost everyone. Your formation paperwork has to spell out roofing as your purpose, or the IDFPR will reject your license application down the line. Here's what registration involves:

• File your formation documents: Articles of Organization for an LLC, or Articles of Incorporation for a corporation, filed with the Illinois Secretary of State.
• Use the required purpose language: Your filing must include "To provide limited roofing services, pursuant to the Illinois Roofing Industry Licensing Act" (or the "unlimited" version). Get this right at formation so you don't have to amend it later.
• Get a FEIN: Apply for a Federal Employer Identification Number from the IRS. The roofing license application asks for a FEIN instead of an individual Social Security number.
• Appoint a registered agent: Illinois requires every LLC and corporation to name a registered agent with a physical Illinois address to receive legal and state documents.
• Register an assumed name if needed: If your business name is anything other than the owner's legal name, file an assumed or fictitious name.

Sole proprietors have it simpler. You don't form a separate entity, but you'll still file an assumed name with your county clerk if you operate under a business name like "Roof Guys."

2. Get an Illinois Roofing License (Difficulty 5)

According to the Illinois Roofing Industry Licensing Act, you need a license to undertake roofing work. You can't become a roofing contractor in Illinois without a valid roofing license approved by the Illinois Department of Financial and Professional Regulation (IDFPR). Here's a short overview of the different licenses:

You have to weigh a Limited License against an Unlimited License and think about your needs. The Unlimited license covers residential, commercial, and industrial work, so you do not need a separate license for each type of job. To get either license, you go through an exam and an application process.

The real requirements are a designated qualifying party who passes the state exam, liability and property damage insurance, and a surety bond. If you have employees, you also need workers' compensation and unemployment insurance. There is no formal experience requirement to sit for the exam. Here's how the licensing process actually works:

• Designate a qualifying party and pass the exam: The qualifying party is the person responsible for the company's roofing work and the one who must pass the test. They submit the RF-QP application to Continental Testing Services (about $226) and pass the written exam.
• Line up insurance and a bond: Secure your liability and property damage insurance and your surety bond, all in the business's name.
• Submit the licensure application: File the IDFPR roofing contractor application (the "RF" form) with a $125 fee, along with your insurance, bond, and business formation documents.

The trickiest part is the license examination. It is a written, multiple-choice exam administered by Continental Testing Services, and it tests detailed knowledge of roofing practices, the Illinois Roofing Industry Licensing Act, and building codes. The exam becomes a thousand times harder for people who want to start a roofing company with no experience.

What's on the Illinois Roofing Exam?

There are three different roofing exams, and the one you take depends on the license you want. All of them are closed-book, multiple-choice, and you need a score of 70% to pass. Miss that mark and you'll have to reapply for the next testing date.

A few things are worth knowing before you sit down for the test:

• The exam runs 6 times per year. Register with Continental Testing several weeks before your date, because the deadlines are strict.
• It's closed-book. No reference materials in the room, so you have to know the material cold.
• The upgrade path has a waiting period. You can only take the Commercial & Industrial upgrade exam after you've held a Limited license for one year.

If you want to skip the year-long wait, go straight for the Unlimited license. It's a longer exam, but it lets you take any roofing job from day one.

Keeping Your License Active

Your work isn't done once the license arrives. Illinois roofing licenses expire on December 31 of every odd-numbered year, no matter when you got yours, and license renewal runs about $62.50 per year. Mark the date, because operating on a lapsed license can cost you in fines.

There's one more thing that catches new business owners off guard. The license belongs to the company, but it only stays valid as long as a qualifying party is attached to it. If your qualifying party leaves, the license goes inoperable until you name a replacement who has passed the exam.

• You get 30 business days to notify the IDFPR and designate a new qualifying party.
• The replacement has 7 months to pass the exam if they haven't already.
• Plan ahead. If you're the only one in the company who passed the exam, the business can't legally operate without you. Many owners get a second person qualified early for exactly this reason.

Check Your Local Requirements

The state license gets you in the door, but your city or county may have its own rules on top of it. Chicago, for example, has additional requirements for contractors working inside the city limits. If you plan to work there, read up on how to become a licensed roofer in Chicago before you bid on any jobs.

How can you get a roofing license easily?

At Illinois Roofing Institute, we teach you everything that you need to know to ace your roofing exam. Our specialized classes give you hands-on experience and theoretical knowledge.

We cover everything from license application to roofing license exam prep, and post-graduation connections. Take the first step to your roofing business today.

3. Developing a Business Plan (Difficulty 5)

To start your roofing company, you'll need to plan out your services, the consumer cost of these services, your profit margin, accounts, and the type of company you're building. It seems a lot to swallow, but don't worry, we'll break it down for you.

Structure of Roofing Company

You can broadly divide businesses into four different categories:

If you're setting up a new roofing business with a small investment, we recommend going for sole proprietorship or an LLC. S and C corporations are for large entities with millions in funding and expenses.

Choosing Services

There are different types of roofing jobs, and you have to choose the ones you want to provide. You can broadly divide roofing services into three categories: installation, repair, and maintenance. These apply to both commercial and residential projects.

In Illinois, the Unlimited license covers residential, commercial, and industrial roofing, while the Limited license covers only residential properties of 8 units or fewer. You do not need separate licenses for commercial and residential work, since one Unlimited license covers both.

As a new business, you have to choose the services you provide and the customers. For example, most sole proprietorships offer residential roof installation, repair, and maintenance.

Setting Up Accounts

You'll need to set up a business bank account for your roofing business. Mixing up personal finances with business payments is never a great idea. Having separate accounts will allow you to receive, distribute, and use money more easily.

You can open an account with your local credit union or at a bank. Before registering your bank account, check out the reviews of local banks and unions. And for the love of all that's holy, please do not rely too much on fintechs.

Profit Margins and Pricing

The net profit margin of a roofing company varies widely based on state, income demographics, and cost of materials. To build a thriving business, you'll need to research the average per sq ft cost in your designated service area.

You can get these estimates by contacting competitors in your area. Knowing the right price will prevent under- or over-bidding on projects in the state of Illinois.

4. Securing Funds and Insurance (Difficulty 3)

Even if you have a contractor license, you cannot do any roofing contractor work without funding. You will also need to show a surety bond to get your roofing contractor license. Let us look at the financial burden of beginning an Illinois roofing contractor:

Finding Investors and Lenders

People often don't have a chunk of the base capital to start a roofing business. You will need a loan if you belong to this group. We do not promote any specific bank or lending association, because it's not our place.

However, we do recommend keeping the risks in mind. Always look for loans that you can repay on time and don't tie you down for the next decade. Often, we become infatuated with this illusion of profits and end up taking loans that we can't repay.

Please do not commit to a loan that you cannot repay. Look at the interest rates of different banks and find the one that gives you the most freedom.

Insurance Requirement for Roofing Businesses

To become a roofing contractor in Illinois, you will need insurance. The Illinois Roofing Industry Licensing Act requires liability and property damage insurance, plus a surety bond. If you have employees, you also need workers' compensation and unemployment insurance. Here's the brief version:

Commercial auto insurance is smart to carry if your crew drives company vehicles, but it is not required to get your state roofing license. In addition, you'll need a surety bond of $10,000 for a Limited license or $25,000 for an Unlimited license.

If you run a one-person operation with no employees, you can skip the workers' compensation and unemployment insurance, but the liability and property damage coverage and the bond are non-negotiable for every roofing license.

These are the base roofing license requirements to become a verified roofer in Illinois. We recommend looking for a good roofing insurance company, vetted by the roofing contractors association.

5. Teams and Tools (Difficulty 4)

You, as a contractor, cannot take every residential or commercial roofing project. A good contractor needs a team and the right tools to fix roofing systems, along with a license for roofing.

Hiring Workers

Most residential projects require a crew of 5 to 6 workers for a 2000 sq ft roof. The crew can take anywhere between 1 to 3 days based on the type of service. According to the Bureau of Labor Statistics, roofers have an hourly wage between $13.07 to $26.92.

Here's what you'll be paying based on these statistics:

If you're new to the roofing industry, you might not even find a crew. Your best bet is to talk to the supervisor of a crew on an under-construction project. If you want a dedicated crew, then you'll have to make connections with the right people.

You can make some connections in the IL Roofing Institute. You'll be around numerous people who want to work in the same industry. With the right mindset and demeanor, you can rely on them for your future projects.

Renting or Buying Tools

A successful roofing company needs good tools and roofing material. You can acquire roofing materials and tools from a Home Depot near your house. You'll need tools like:

• Nail and caulking gun
• Saws and roofing hammers
• Tape measures and hard hats
• Ladder, roof anchors, and harnesses

You'll also need a space to store these tools, like a storage unit that's close to your house. Your priority should be the tools, because roofing material selection is subjective to the client.

One client might want asphalt shingles, and the other might need wooden shake shingles. Stocking up on every type of material will only dry your wallet.

Roofing Software

Every roofing contractor needs some software to keep the business running. You can start with simple Excel sheets or a dedicated roofing CRM. Some established roofing companies use RoofSnap, BuilderTrend, or RoofLink for size estimations.

Jibble is a free time-tracking app that can help you manage labor payments. You can use these apps to make accurate roof measurements and generate detailed bills or quotes.

6. Branding Your Roofing Company (Difficulty 3)

You have to brand your business to give it visibility. People can't find you when you don't have a business card, a name, and a logo. Here's the A2A on what you need to do:

• Craft a catchy brandable name like Roof Guys (P.S. I know this isn't a good name).
• Choose a good logo.
• Create a separate official email for your business.
• Choose a contact number for customers.

These are the official first few things that you need to look at. After these steps, you need to think about social media impact and websites. You should use the email you created to create social media accounts for your business.

You should also think about setting up a website to gain new customers. We'd recommend focusing on the social media parts first to make the most impact. It doesn't take a lot of resources, and you can do a lot of it by yourself.

FAQs About Starting a Roofing Business

How do I get customers for my roofing business?

You can get customers for your roofing business through connections and advertisements. Set up ads on Facebook, Instagram, and TikTok to get more visibility. You can also spread the word around through locals or by distributing flyers.

Do you need a license to do roofing in Illinois?

Yes, you need a state roofing license to become a roofer in Illinois. You can get an Unlimited or Limited license by passing the relevant exam. The Limited license allows you to work on residential properties of 8 units or fewer, while the Unlimited license applies to all types of roofing work, including commercial and industrial.

How can I get commercial roofing clients?

You can get commercial roofing jobs through proactive outreach methods like D2D marketing, LSA, email campaigns, referrals, and brand partnerships. Other less active methods include brand building and attracting organic clients.

Bottom Line on How to Start a Roofing Company

Starting a roofing business in Illinois requires in-depth knowledge of the local market, good branding, a registered business, a license, and a dedicated team. Naturally, you have to go through multiple hurdles to turn your business into a successful enterprise. However, as long as you have the willpower and the right information, nothing can stop you from achieving your dream.

At Illinois Roofing Institute, we help dreamers and doers like you manifest their dreams. We help you pass the exams, build connections, and establish a firm foothold in the roofing industry.