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 5 simple steps:

1. Get an Illinois Roofing License:  You can't operate a roofing business without a Residential or Unlimited license. Getting an Illinois roofing license is difficult because of the requirements and exam formats. 
2. 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.
3. 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 for some large-scale projects, which doesn't come cheap. 
4. 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.  
5. 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 five 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 licensing to branding. We'll walk you through all the steps:

1. 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 with 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 weight a Limited License vs an Unlimited License and think about your needs. The requirements to get a roofing license in Illinois are employment experience and a surety bond. To get any unlimited or limited license, you will have to go through the application process and an exam. 

The trickiest part is the license examination, which requires both hands-on and theoretical knowledge. The exam becomes a thousand times harder for people who want to start a roofing company with no experience. 

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. Register for the classes by clicking on the button below.

2. 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, you need separate licenses for both commercial and residential roofing jobs. 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 facilities. 

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 is between 20% to 40%. This statistic varies 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. In Illinois, the average cost for installing a roof is between $700 to $1000 per 100 sq ft. Knowing the right price will prevent under- or over-bidding on projects in the state of Illinois. 

3. Securing Funds and Insurance (Difficulty 3)

Even if you have a contractor license, you cannot under any roofing contractor work without funding. You will also need to show some surety bonds 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. According to Illinois law, you will need two to three different types of insurance. Here's the brief version of all three:

In addition, you'll also need to provide surety bonds between $10,000 and $25,000 for Limited and Unlimited licenses, respectively. 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.

4. 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 Gum
• 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. 

5. 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:

1. Craft a catchy brandable name like Roof Guys (P.S. I know this isn't a good name). 
2. Choose a good logo.
3. Create a separate official email for your business.
4. 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 undertaking the relevant exams. The limited license allows you to work on residential properties, while the unlimited license is applicable for all types of roofing work.

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 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. Join our roofing classes today and take the first step toward your future.