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How to Start a Plumbing Business in Indiana

Plumbing is steady, needs-based work: leaks, clogs and water heaters don't wait for a good economy. Most states license plumbers individually, so many owners start after years as a journeyman. Federal rules also limit lead in the pipes and fittings you install for drinking water.

Reviewed November 5, 2026 · Sources linked inline

Indiana requirements for this business

  • Indiana's Professional Licensing Agency states it is unlawful to act as a plumbing contractor or journeyman plumber without a license (Indiana Plumbing Commission). [source]
  • Indiana journeyman applicants need at least four years in a commission-approved apprenticeship or a notarized statement of four years of plumbing experience in employment listed in IC 25-28.5-1-32(2), (6) or (7); contractor applicants can qualify through an approved apprenticeship, four years of documented trade experience, or four years working in a plumbing business under a licensed plumbing contractor. [source]
  • Nonrefundable application fees are $10 for apprentices, $30 for journeymen (plus a $30 even-year or $15 odd-year issuance fee) and $50 for plumbing contractors (plus a $100 even-year or $50 odd-year issuance fee); contractor renewal is $100. [source]
  • Indiana offers no reciprocity for journeyman and contractor plumbers licensed in other states. [source]
  • Indiana counts four years of plumbing experience in certain employment listed in IC 25-28.5-1-32, such as an authorized government employee who does not profess to be for hire, or a maintenance person at their own place of employment, toward the journeyman experience requirement. [source]

Statewide steps for every Indiana business — forming an LLC or registering a business name with the State of Indiana — are on our state licensing directory.

FirstBizGuide is not a government agency: any license or registration fees are paid directly to the agency named in each source. These are the Indiana facts we have verified so far, not a complete list. City and county rules vary — check with your local government before opening.

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open the plumbing contractor cost worksheet →

SBA 7(a) loans in this industry

Plumbing, Heating, and Air-Conditioning Contractors (NAICS 238220): 3,358 loans approved in FY2024–FY2026. Median loan $175,000; middle half $63,125–$450,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Plumbing, Heating, and Air-Conditioning Contractors (NAICS 238220)

In Indiana: 2,008 employer establishments (2023) and 2,765 businesses without employees (2024). Nationwide: 111,207 employer establishments (2023) and 189,085 businesses without employees (2024).

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Drain cleaning machines (drum and sectional)
  • Sewer inspection camera and locator
  • Pipe wrenches, cutters and press or crimp tools
  • Soldering and brazing kit
  • Wet/dry vacuum and water-extraction gear
  • Service van with parts shelving
  • PPE including gloves and eye protection
  • Field service software

Licenses and registration

  • If you form an LLC or corporation, register it with your state; if you use a business name other than your own, file a trade name (DBA) where your state requires it (in some states that's the county).
  • Most states license plumbers, often with apprentice, journeyman and master levels, and some also license the business; check your state plumbing board and your city.
  • Many jobs, such as water heater replacements and new piping, need a permit and inspection from the local building department.
  • Under the Safe Drinking Water Act, pipes, fittings and fixtures installed or repaired in plumbing that provides water for human consumption must be "lead free" — a weighted average of 0.25% lead across wetted surfaces, and 0.2% for solder and flux — with listed exemptions such as non-potable devices, toilets and shower valves. [source]
  • Backflow prevention testing and gas piping often require separate certifications or licenses — ask your state or local water and building authorities.
  • EPA's Renovation, Repair and Painting (RRP) rule names plumbers and electricians among the special trade contractors it covers: firms paid for work that disturbs paint in homes and child-occupied facilities built before 1978 must be certified, even sole proprietorships, unless an exemption such as minor repair (6 square feet or less per room inside, 20 square feet or less outside) applies. [source]
  • Some states run their own lead-based paint (RRP) program instead of EPA; if yours does, certify with the state. [source]
  • Commercial clients and general contractors often ask for a certificate of insurance, a W-9 and proof of license.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • To find your state's business registration office, use the SBA's state-by-state registration lookup. [source]

Insurance to consider

  • General liability (water damage is a common claim)
  • Commercial auto for service vans
  • Tools and equipment (inland marine) coverage
  • Workers' compensation once you hire
  • Contractor license bond if your state or city requires one

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Parts and materials (usually billed per job)
  • Fuel and van maintenance
  • Insurance
  • Plumber and helper wages
  • License renewals and continuing education
  • Equipment repair
  • Software subscriptions
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them.

Common mistakes

  • Pricing by the hour without knowing your true cost per hour
  • Skipping permits on water heaters and repipes
  • Installing parts that aren't lead free in drinking-water lines
  • No after-hours or emergency pricing
  • Not documenting job sites with photos

Finding customers

  • Google Business Profile and local service listings
  • Emergency and same-day service positioning
  • Referrals from realtors, home inspectors and property managers
  • Relationships with general contractors and remodelers
  • Follow-up offers for water heater and drain maintenance

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

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