Step by step. Official links included.

How to start an HVAC business in California

An HVAC technician servicing an outdoor air conditioner

This is not legal, tax, or insurance advice. Read the official pages linked here. Partner offers are optional and labeled.

Start with repair and maintenance if that is the skill, and add replacement when you can pull the permit and warrant the install. Say which fuels and which brands you will not touch. A page that only sells new systems attracts an argument you may not want yet. In California the first customers are in Los Angeles, San Diego, San Francisco, San Jose, Riverside, Sacramento. Los Angeles HVAC is a split climate. San Diego HVAC is easy to get wrong. A lot of older houses still have weak cooling or none. A lot of older houses still have weak cooling or none. Summer is the emergency. Summer is the emergency.

California is several climates. Coastal fog, inland heat, drought rules, and earthquakes all change the work. A license from the Contractors State License Board is the state starting point. The city permit is a second step.

File an LLC with the California Secretary of State. California Government Code section 12190 sets the fee for filing articles of organization at $70, and the fee for the statement of information at $20. The Secretary of State's LLC-1 cover sheet also says an LLC may have to pay a minimum $800 tax to the Franchise Tax Board. Read the Franchise Tax Board page before you treat $70 as the whole cost. A sole proprietorship can still be you, under your own name, without this filing. The fee is not a suggestion to form an LLC.

Some boxes are labeled Partner. ServiceBase has not joined those programs. The links go to each company's own homepage, not a tracking link. If a program later approves us, the address will change and we may earn a commission. You can file, insure, and bank anywhere. Official government links are not partner links. Nothing on this page is a discount code.

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  1. 01Choose a name in California

    Use a name you can say when someone is standing in a hot hallway. Search the license board and the state filing office together. The qualifier's name and the company name both end up on the record in many states. Match them on the van.

    Search that name at the California Secretary of State before you print shirts. Use the same spelling on the truck and on a quote in Los Angeles.

  2. 02Form the LLC or stay a sole proprietor

    HVAC licenses are usually held by a person who qualifies the company. A sole proprietorship works when that person is you. An LLC works when the board lets the company hold the registration with you as qualifier. Read the mechanical or air-conditioning section, not a general contractor page from another trade. Form the company before the EIN if you are filing an LLC. The structure does not let you sell replacements without the license.

    California Government Code section 12190 sets the fee for filing articles of organization at $70, and the fee for the statement of information at $20. The Secretary of State's LLC-1 cover sheet also says an LLC may have to pay a minimum $800 tax to the Franchise Tax Board. Read the Franchise Tax Board page before you treat $70 as the whole cost. A sole proprietorship can still be you, under your own name, without this filing. The fee is not a suggestion to form an LLC.

  3. 03Get a free EIN from the IRS

    An employer identification number is the business tax ID. The IRS issues it online at no charge and says you never have to pay a company to get one. If you form an LLC, file with the state first. The IRS says an EIN application can stall when the state filing is not done. A sole proprietor can often start with a Social Security number and get an EIN when a bank or a hire requires it.

    Apply on the IRS page if you want the number yourself. LegalZoom, the partner beside this step, can request it while they form the company. That service is optional. The IRS fee is still zero either way.

  4. 04Check the HVAC license in California

    The California licensing page we could verify is the California Contractors State License Board. Open it and read the part that names the work you will sell.

    Read this page for your trade. A city or county can require its own registration even when the state does not.

    Read the state mechanical or air-conditioning license, including who may handle refrigerant, and the city rule for a change-out. A maintenance visit and a system replacement are not the same credential question.

    Read the warm-air or air-conditioning classification at the Contractors State License Board. Coastal Los Angeles and the inland valleys do not fail the same way, and the license is still the state board. City permits differ. LADBS is the Los Angeles counter.

    A city or county can require its own registration even when the state page is quiet. The city guides name the local permit counter. Call that office and write down what they say. Do not pay a third party that promises a license until you have read the official page.

  5. 05Insure the work

    General liability that understands condensers, furnaces, and attic work. Ask about refrigerant and about damage from a condensate leak, which customers often think is a roof. Commercial auto for the van. Workers' compensation before a helper is in an attic in summer. Have the certificate ready for property managers.

    Workers' compensation is a state program. Before anyone works with you, including a friend, ask an insurer and the state labor office whether you must carry it. This guide does not quote a headcount, because those rules differ and the state page is the source. The SBA page describes the common policies. It does not sell them. Buy the policy before you work in a house in California.

  6. 06Open a business bank account

    Equipment purchases and customer deposits need a business account before the first change-out. A maintenance plan's small monthly payments are easy to lose in a personal account. Deposit them, and set tax money aside when a replacement job pays.

    The bank will usually ask for your ID, the EIN or your Social Security number, and the formation papers if you filed an LLC. A checking account and a habit of setting tax money aside are enough at the start.

  7. 07Price the work California actually has

    Lead with diagnosis. A no-cool call is a diagnostic price plus the repair, not an automatic system quote. Write the diagnostic price down, including whether it is waived if they buy the repair.

    Replacement prices depend on the equipment location and the ductwork, which you cannot see from a national average. Say that you quote replacement after the diagnostic. Publish the hours you answer when the house is unsafe to stay in.

    Los Angeles: a mild coast, hot valleys, drought, and wildfire weather that changes how people build and water Cooling repair, heat pumps and mini-splits, change-outs, and ADU systems where you pull permits. San Diego: a cool marine layer on the coast, real heat inland, drought, and almost no winter freeze Cooling repair inland, new cooling on the coast, and heat pumps where they fit. San Francisco: marine fog, a mild wet winter, dry summers, almost no freeze, and earthquakes that changed how houses are braced No-cool or no-heat diagnosis, the repair, and a replacement only after you have seen the equipment. In San Francisco, CA, list Sunset and Daly City together only if one crew really covers both. San Jose: mild wet winters, dry warm summers, drought, earthquake risk, and wildfire smoke that sometimes sits on the valley No-cool or no-heat diagnosis, the repair, and a replacement only after you have seen the equipment. In San Jose, CA, list Willow Glen and Cupertino together only if one crew really covers both. Riverside: hot inland summers, Santa Ana winds, a dry year most years, and wildfire weather on the edges No-cool or no-heat diagnosis, the repair, and a replacement only after you have seen the equipment. In Riverside, CA, list Riverside and Rancho Cucamonga together only if one crew really covers both. Sacramento: hot dry summers, cool wet winters, valley fog, and a delta breeze that does not replace air conditioning No-cool or no-heat diagnosis, the repair, and a replacement only after you have seen the equipment. In Sacramento, CA, list Midtown and Roseville together only if one crew really covers both.

  8. 08Get found, then create the free site

    The Google Business Profile should say repair and replacement as separate services, and it should match the season people are actually in. Photos of equipment in local attics, closets, or roofs beat a stock condenser. The website form asks for the symptom and whether anyone in the house is at risk from the temperature. ServiceBase keeps those requests in a list you can work from the driveway.

    In Los Angeles, San Diego, San Francisco, San Jose, Riverside, Sacramento, the profile, the reviews, and the site should name the neighborhoods you actually drive. ServiceBase publishes the page and keeps quote requests in a list on your account. No card. It does not file the LLC, get the EIN, or buy the insurance.

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Questions

How much does an LLC cost in California?

California Government Code section 12190 sets the fee for filing articles of organization at $70, and the fee for the statement of information at $20. The Secretary of State's LLC-1 cover sheet also says an LLC may have to pay a minimum $800 tax to the Franchise Tax Board. Read the Franchise Tax Board page before you treat $70 as the whole cost. A sole proprietorship can still be you, under your own name, without this filing. The fee is not a suggestion to form an LLC.

What license does a HVAC need in California?

The California licensing page we could verify is the California Contractors State License Board. Open it and read the part that names the work you will sell. Read this page for your trade. A city or county can require its own registration even when the state does not.

Where should a new HVAC business start in California?

Start where you can reach the stops in a day. The city guides cover Los Angeles, San Diego, San Francisco, San Jose, Riverside, Sacramento. Distance is the objection. A statewide claim is a weak service area.

Is the EIN free?

Yes. Use the IRS link in the steps if you want the number yourself. LegalZoom, the partner on the EIN step, can request it while they form the company. That service is optional. The IRS fee is still zero.

City guides in California

All HVAC business steps · HVAC website guide

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