How to Start a Drywall Contracting Business: A Step-by-Step Guide

Nate Jones, CPCU, ARM, CLCS, AU
Sep 4, 2025
3 min read

Updated: Sep 29, 2025

Starting a drywall contracting business can be a profitable venture in the construction industry. With consistent demand for drywall installation, finishing, and repair in both residential and commercial projects, this trade offers strong growth potential. But success requires more than just skill—it takes planning, compliance, and protection.

At Wexford Insurance, we specialize in helping drywall contractors protect their businesses with tailored insurance solutions. In this guide, we’ll walk you through the essential steps to launch your drywall business and operate it professionally.

Step-by-Step Guide to Starting a Drywall Contracting Business

1. Understand the Industry and Market Demand

Drywall installation is a $56+ billion industry in the U.S. Whether you're targeting residential renovations or commercial builds, there's a steady need for skilled drywall contractors. Start by researching your local market, identifying competitors, and understanding customer needs.

2. Choose Your Business Structure

Decide whether to operate as a sole proprietorship, LLC, or partnership. An LLC is often recommended for contractors because it protects personal assets from business liabilities.

3. Get Licensed and Certified

Licensing requirements vary by state and project size. For example:

California requires a license for projects over $1,000
North Carolina sets the threshold at $30,000

You may need:

A specialty drywall contractor license
A general contractor license (for broader services)
A local business license

4. Invest in Essential Tools and Equipment

Start with the basics:

Drywall lift – for ceiling installations
Drywall sander – for smooth finishes
Taping knives – for joint compound application
Screwgun – for fast and secure fastening
Corner bead tools, mesh tape, and utility knives

👉 Read more: Best drywall tools for contractors

5. Create a Business Plan

A solid business plan helps you define your services, pricing, target market, and growth strategy. Include:

Executive summary
Market analysis
Services offered
Marketing and sales strategy
Financial projections

👉 Read more: Free drywall business plan template

6. Market Your Drywall Business

To attract clients:

Build a professional website with project photos
Optimize for local SEO (e.g., “drywall contractor [city]”)
Use social media to showcase work
Attend networking events and partner with builders

Market Your Drywall Brand with Contractor Back Office

Contractor Back Office helps drywall contracting businesses establish a professional brand by managing websites & SEO email & calendar management, and social media platforms. These services make it easier to showcase your services, share project photos, and engage with potential clients online—helping you build credibility and attract more contracts.

7. Protect Your Business with Insurance

Drywall contracting involves physical labor, property risks, and liability exposure. At Wexford Insurance, we help drywall contractors secure the right coverage to operate confidently.

General Liability Insurance – Covers third-party injuries and property damage
Commercial Auto Insurance – Protects vehicles used for transporting materials
Commercial Property Insurance – Covers your office, warehouse, or tools
Workers Compensation Insurance – Required if you hire employees
Tools and Equipment Insurance – Covers your gear from theft or damage

Final Thoughts

Starting a drywall contracting business is a smart move in today’s construction market. With the right tools, licenses, marketing, and insurance, you’ll be well-positioned to grow a profitable and professional operation.

Wexford Insurance is here to help you protect your business every step of the way.

👉 Contact Wexford Insurance today to get started.