How Much Does It Cost to Start a General Contractor Business in Texas?
- Nate Jones
- 7 days ago
- 2 min read
Starting a general contractor business in Texas can be exciting and profitable, especially in fast-growing markets like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso. But before taking on your first project, you need to understand the real startup costs, required insurance, and the steps to legally set up your operation.
This guide breaks down the average expenses, licensing needs, and insurance requirements—and shows you where to get affordable contractor coverage through One Hampton Insurance.
1. Business Formation Costs in Texas
Most new contractors begin by forming an LLC to protect personal assets.
Estimated costs:
Texas LLC filing fee: $300
Registered agent (optional): $99–$150/year
Operating agreement: $50–$150
2. Licensing & Permitting Costs
Texas does not require a statewide general contractor license, but many cities—including Houston, Dallas, and San Antonio—require contractor registration.
Estimated costs:
City registration: $50–$150
Specialty licenses (electrical, plumbing, HVAC): $50–$115 exam + licensing fees
Permit fees per project: $50–$500+
Startup tool costs depend on your niche (remodeling, carpentry, roofing, etc.).
Average estimate:
Basic tool set: $1,000–$3,000
Power tools & saws: $2,500–$7,500
Trailer or truck setup: $5,000–$20,000
Contractors in booming markets like Austin and Fort Worth often invest early in higher-capacity equipment to stay competitive.
4. Marketing & Website Costs
To compete in major Texas markets like El Paso and Houston, marketing is essential.
Estimated costs:
Website: $300–$2,500
SEO & Google Ads: $200–$2,500/month
Business cards, yard signs, branding: $150–$500
Lead platforms (Angi, Thumbtack): $50–$300/month
If you need complete digital support SEO, website updates, social media marketing, bids, invoicing, bookkeeping, CRM management and Phone Support—your Contractor Back Office team can manage it for you.
5. Insurance Costs for General Contractors in Texas
Insurance is one of your largest and most important startup expenses. It protects you, your workers, your clients, and your company.
Five Necessary Contractor Insurances in Texas
Estimated insurance costs:
General liability: $900–$2,500/year
Workers’ comp: $1,200–$4,000/year
Commercial auto: $1,000–$3,000/year per vehicle
Equipment coverage: $300–$900/year
If you want competitive rates tailored for Texas contractors, request a quote from One Hampton Insurance. They specialize in contractor policies and can help you get compliant fast.
6. Total Estimated Startup Cost for a Texas Contractor
Depending on your business size and tools you already own, your startup cost may range from:
Low End: $5,000–$10,000
Mid Range: $15,000–$35,000
High End: $40,000–$75,000+
This includes tools, vehicle, insurance, formation, and marketing.
Final Thoughts
Starting a general contractor business in Texas is an investment, but with the right insurance, tools, and foundation, you can build a profitable company in top markets like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso. Before you take your first job, make sure your business is protected.
For hassle-free, affordable contractor insurance, reach out to One Hampton Insurance for a fast quote today.
Comments