How Much Does It Cost to Start a Remodeling Business?

Nate Jones, CPCU, ARM, CLCS, AU
Oct 16
2 min read

Starting a remodeling business can be a profitable venture—but like any business, it requires upfront investment. From tools and licensing to marketing and insurance, understanding your startup costs helps you plan better and avoid surprises.

At Wexford Insurance, we specialize in helping remodeling contractors protect their businesses with tailored insurance coverage. In this guide, we’ll break down the typical costs of starting a remodeling business and how to budget wisely.

Estimated Startup Costs for a Remodeling Business

Here’s a breakdown of the major expenses you’ll need to consider:

1. Business Registration and Licensing

Business registration: $50–$500
Contractor license (varies by state): $100–$1,000
EPA Lead-Safe Certification (if working on older homes): $300–$600

2. Tools and Equipment

Basic hand and power tools: $2,000–$5,000
Safety gear and ladders: $500–$1,500
Vehicle (truck or van): $10,000–$30,000 (or lease monthly)

👉 Read More: Explore Must-Have Remodeling Tools

3. Office or Workspace Setup

Home office setup: $500–$1,000
Commercial space rental (optional): $500–$2,000/month
Storage for tools and materials: $200–$500/month

4. Marketing and Branding

Website design and hosting: $500–$2,000
Logo and branding: $200–$1,000
Business cards, flyers, signage: $100–$500
Online advertising and SEO: $300–$1,000/month

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5. Insurance Coverage

Insurance is a critical part of your startup costs. It protects your business from liability, property damage, and other risks.

At Wexford Insurance, we help remodeling contractors find affordable, customized coverage. Here are the key policies to budget for:

General Liability Insurance – $500–$1,500/year
Workers’ Compensation Insurance – $1,000–$3,000/year (varies by payroll)
Commercial Auto Insurance – $1,200–$2,500/year
Commercial Property Insurance – $500–$2,000/year
Equipment Insurance – $300–$1,000/year

Total Estimated Startup Cost

Depending on your location, scale, and services, the average cost to start a remodeling business ranges from $10,000 to $50,000. Starting small and scaling gradually is a smart approach—especially if you’re working solo or subcontracting.

Final Thoughts

Starting a remodeling business requires thoughtful planning and investment. By budgeting for tools, licensing, marketing, and insurance, you’ll set yourself up for long-term success. At Wexford Insurance, we’re here to help you protect your business from day one.