How Much Does It Cost to Start a Drywall Contractor Business in Texas?
- Nate Jones
- Dec 1
- 3 min read
Starting a drywall contractor business in Texas can be a lucrative venture, but understanding the startup costs is crucial to plan your budget and ensure profitability. From equipment and labor to permits and insurance, knowing what expenses to expect in cities like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso can help you start smart.
This guide breaks down typical startup costs, gives tips on managing expenses, and explains how the right insurance can protect your investment.
Business Registration and Permits
Even though Texas does not require a statewide drywall contractor license, you will need:
Business registration with the Texas Secretary of State (for LLCs, corporations, or partnerships)
EIN from the IRS for taxes
Sales Tax Permit if selling materials or services
Local city or county permits in cities like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso
Estimated cost: $300–$500 for registration and permits depending on your city.
Tools and Equipment
Drywall contractors need specialized tools to complete projects efficiently. Typical equipment includes:
Drywall lifts and scaffolding
Taping knives, mud pans, sanders, and drills
Trucks or vans for transporting materials
Personal Protective Equipment (PPE) like gloves and respirators
Estimated startup cost: $10,000–$25,000 depending on whether you buy new or used equipment. Contractors in larger cities like Dallas and Austin may spend more due to higher project demands.
Labor Costs
Hiring skilled drywall installers is essential. Labor costs will vary based on experience, city, and crew size:
Entry-level installers: $15–$25 per hour
Experienced installers: $25–$40 per hour
In cities like Houston or San Antonio, labor may be slightly lower than in Austin or Dallas, but quality hiring is key to maintaining reputation and profitability.
Insurance Costs
Proper insurance is critical to protect your business from financial risks:
Workers’ Compensation (highly recommended even though Texas doesn’t mandate it)
Commercial Property Insurance (if you store materials)
Estimated insurance cost: $3,000–$7,000 annually, depending on coverage levels and business size.
One Hampton Insurance, an independent agency, helps drywall contractors in Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso find the best coverage at competitive rates.
Marketing and Business Expenses
To attract clients and secure projects:
Build a website with a portfolio of your work
Use Google Business Profile for city-specific SEO (e.g., “Drywall Contractor in Fort Worth”)
Post on local job boards or trade directories
Print business cards, flyers, and signage
Estimated startup cost: $1,000–$5,000 depending on the marketing strategy.
Market Your Drywall Business with Contractor Back Office
Contractor Back Office helps drywall contractors build a strong brand and attract more clients through SEO-driven strategies, professional website design, bookkeeping, and social media management. These tools showcase your services, share project photos, and engage with clients—helping you grow your business from day one.
Total Estimated Startup Costs
Expense Category | Estimated Cost Range |
Business Registration & Permits | $300–$500 |
Tools & Equipment | $10,000–$25,000 |
Labor (first few months) | $5,000–$15,000 |
Insurance | $3,000–$7,000 |
Marketing & Miscellaneous | $1,000–$5,000 |
Total | $19,300–$52,500 |
Costs will vary depending on your city, project size, and whether you buy new equipment or hire a larger team upfront.
Final Thoughts
Starting a drywall contractor business in Texas requires careful financial planning. Understanding the costs for Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso ensures you’re prepared for both expected and unexpected expenses.
Pairing a well-planned budget with the right insurance from One Hampton Insurance protects your investment and helps your business grow safely and profitably.
One Hampton Insurance can help you compare multiple insurance providers and find the best coverage for your drywall contractor business.
Contact us today.
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