Is Contractor's Choice Agency licensed to sell insurance in Texas?

Yes, Contractor's Choice Agency is fully licensed in Texas with Agency License #1474201 (expires 11/8/2025) and Individual License #1436686 (expires 1/31/2027) issued by the Texas Department of Insurance. You can verify our license at https://compliance.sircon.com/.

Do Texas contractors need workers compensation insurance?

Texas is unique as a non-subscriber state where workers comp is optional for most private employers. However, CCA recommends it for government projects which require coverage, and it provides crucial protection against workplace injury lawsuits under Texas Labor Code.

What insurance do Texas contractors need for energy sector work?

Energy sector contractors in Texas need enhanced coverage including $2M-$10M general liability, pollution liability, and specialized equipment coverage. CCA specializes in oil & gas, renewable energy, and petrochemical construction insurance with competitive rates.

How much does contractor insurance cost in Texas through CCA?

Through Contractor's Choice Agency (License #1474201), Texas contractors typically pay $400-$1,500 annually for general liability, $1,200-$3,000 for commercial auto, and workers comp rates vary by trade. Energy sector coverage ranges from $2,000-$10,000 based on project scope.

What is the Texas statute of repose for construction defects?

Texas has a 10-year statute of repose for construction defect claims under Texas Civil Practice and Remedies Code Chapter 16, starting from substantial completion. CCA helps structure your completed operations coverage to align with this extended liability period.

Does Texas require contractor licenses?

Texas doesn't require state-level general contractor licenses, but many cities require registration and trades like electrical and plumbing need state licenses. CCA helps navigate local requirements and ensures proper insurance coverage for your specific trade and location.

Can CCA provide same-day insurance certificates in Texas?

Yes, as a licensed Texas insurance agency (License #1474201), CCA provides same-day certificate of insurance issuance for Texas contractors. Our direct rating platforms ensure fast turnaround for project requirements.

What is CCA's National Producer Number?

Contractor's Choice Agency's National Producer Number is 8608479, issued by NAIC. This number validates our authorization to write insurance across multiple states including Texas.

The Lone Star State

TexasContractor Insurance

Get licensed and insured in Texas with comprehensive coverage and competitive rates. Expert service from licensed professionals who understand Texas construction requirements.

30M+

Population

800K+

Contractors

254

Counties

#1 Construction State

Energy Capital

Leading oil & gas

No State Income Tax

Business-friendly

🎯NEW: Interactive Texas Startup Guide

Start Your Texas Contractor Business in 30 Days

Free step-by-step walkthrough with interactive checklists and direct government links.

📋 12 Lessons✅ Checklists🔗 Gov Links💰 Cost Data

📚 Interactive Guide

Click to Start →

Texas Contractor Business Action Steps - Interactive Walkthrough Preview

Step 1

Business Type

Step 2

State Registry

Step 3

Get Insurance

Step 4

Start Operating

Need Texas Contractor Insurance?

Get competitive quotes for GL, Workers Comp, and Commercial Auto

Get a Quote 📞 Call

Texas Contractor Insurance Guide

Quick Answers for Texas Contractors

Get instant answers to the most common questions about contracting in Texas.

License Required?

Trade-specific only

No general contractor license. Electrical, plumbing, HVAC require specific licenses.

Insurance Minimum?

$1M - $2M typical

General liability varies by trade. Energy sector requires $2M-$10M coverage.

Workers Comp Required?

Not for most private

Optional for private employers, required for government contract work.

Counties Served?

All 254 counties

Statewide coverage from Panhandle to Rio Grande Valley.

Business Formation?

LLC recommended

No state income tax. $300 to file LLC. Strong liability protection.

Energy Sector?

Special requirements

Enhanced coverage for oil & gas, renewable energy, hydrogen projects.

Texas at a Glance

Construction State

$282.5B revenue

30.5M

Population

Fastest growing

State Income Tax

Business friendly

45K

Energy Jobs

Hydrogen hub

Texas Construction Industry Overview

Everything's bigger in Texas, including construction opportunities. The Lone Star State leads the nation in construction revenue and job growth.

Total Population

30.5M

Fastest growing state

Counties

254

Most counties in US

Construction Rank

National construction leader

Population Growth

1.8%

562K new residents in 2024

Construction Value

$282.5B

Projected 2024 revenue

Energy Sector Jobs

45K

Gulf Coast Hydrogen Hub

Why Texas Contractors Choose Us

Construction Leadership

Texas ranks #1 nationally in construction revenue with $282.5B projected for 2024

Rapid Growth

Adding 562K new residents annually creates massive construction demand

Energy Boom

Gulf Coast Hydrogen Hub creating 45,000 new energy sector construction jobs

Cost Analysis

Texas Contractor Insurance Costs

Understanding insurance costs helps you budget effectively and find the best coverage for your Texas contracting business.

General Liability

$1M coverage, varies by trade and location

Low End

$400

per year

Typical

$800

per year

High End

$1,500

per year

Workers Compensation

When required, varies by payroll and risk class

Low End

$500

per year

Typical

$1,200

per year

High End

$3,000

per year

Commercial Auto

Per vehicle, varies by driving records and coverage

Low End

$1,200

per year

Typical

$1,800

per year

High End

$3,000

per year

Professional Liability

For design-build contractors and consultants

Low End

$800

per year

Typical

$1,400

per year

High End

$2,500

per year

Energy Sector Coverage

Enhanced coverage for oil & gas, renewable energy

Low End

$2,000

per year

Typical

$5,000

per year

High End

$10,000

per year

Factors Affecting Your Premium

Trade Type

Electrical and energy work costs more than general construction

High

Location

Houston and Dallas metro areas typically cost 10-20% more

Medium

Experience

New contractors pay 20-40% more than established businesses

High

Claims History

Clean record saves 25-50% compared to multiple claims

Very High

Money-Saving Tips

Bundle Policies

Combine general liability, commercial auto, and workers comp for 10-15% savings

Safety Programs

Implement safety training and documentation for 5-20% premium reductions

Higher Deductibles

Choose $1,000-$2,500 deductibles to reduce premiums by 15-25%

Annual Payment

Pay annually instead of monthly to avoid installment fees (save 5-10%)

Texas-Specific Advantages

No State Income Tax

Keep more of your earnings with Texas's business-friendly tax structure

Optional Workers Comp

Save on workers comp costs for private sector work (still recommended)

Competitive Market

Multiple carriers compete for Texas business, driving down premium costs

Essential Coverage Types for Texas Contractors

Comprehensive protection tailored to Texas construction industry requirements and regulations.

General Liability

Required for most trades

Protects against third-party injury and property damage claims

Typical Coverage:

$1M - $2M per occurrence typical

Common Claims:

Customer slip and fall
Property damage during work
Products liability

Workers Compensation

Optional for private sector

Covers employee injuries and medical expenses

Typical Coverage:

Based on payroll and risk classification

Common Claims:

Construction site injuries
Repetitive stress injuries
Equipment accidents

Commercial Auto

Required for business vehicles

Covers vehicles used for business purposes

Typical Coverage:

$1M combined single limit typical

Common Claims:

Vehicle accidents
Cargo damage
Driver injuries

Tools & Equipment

Recommended

Protects expensive tools and equipment

Typical Coverage:

Replacement cost or actual cash value

Common Claims:

Tool theft
Equipment damage
Contractor trailer coverage

Energy Sector Coverage

Required for energy work

Specialized coverage for oil & gas and renewable energy

Typical Coverage:

$2M - $10M enhanced limits

Common Claims:

Pollution liability
Environmental cleanup
Equipment breakdown

Professional Liability

Design-build contractors

Covers design errors and professional mistakes

Typical Coverage:

$1M - $5M per claim

Common Claims:

Design defects
Code violations
Professional negligence

Legal Protection

Texas Statute of Repose

Understanding Texas construction liability time limits and legal protections.

10-Year Limit

Texas statute of repose provides 10-year protection from construction defect claims

Exceptions Apply

Certain circumstances can extend liability beyond the standard 10-year period

Insurance Coverage

Proper insurance provides additional protection beyond statutory limits

Why Texas is America's Top Construction State

Texas offers unmatched competitive advantages for contractors, from tax benefits to rapid economic growth.

No State Income Tax

Texas has no personal or corporate income tax, allowing contractors to keep more earnings

Key Benefit:

Save 6-13% compared to states with income tax

Business-Friendly Laws

Streamlined regulations and minimal bureaucratic barriers for contractors

Key Benefit:

Faster permitting and business formation processes

Right-to-Work State

Competitive labor market with flexible employment arrangements

Key Benefit:

Lower labor costs and greater workforce flexibility

Economic Growth

Leading the nation in population and business growth creating construction demand

Key Benefit:

$282.5B construction market with 1.8% annual growth

Texas Contractor License Requirements

Texas licensing varies by trade and is managed by different state agencies. Here's what you need to know for the major contractor license types.

Important: Texas Licensing Structure

Unlike many states, Texas does not have a general contractor license. Licensing is handled by trade (electrical, plumbing, HVAC) through specific state agencies. Many construction activities do not require state-level licensing but may require local permits.

Electrical Contractor

Licensing Authority:

Texas Department of Licensing and Regulation (TDLR)

Requirements:

Must employ licensed Master Electrician or hold Master Electrician license
Commercial general liability insurance required
Business entity registration in Texas
Annual renewal with continuing education

License Fees:

Initial:$110

Renewal:$165 annually

Application fee non-refundable, must renew yearly

Insurance Requirements:

$300,000 per occurrence, $600,000 aggregate, $300,000 products/completed operations

HVAC/Air Conditioning Contractor

Licensing Authority:

Texas Department of Licensing and Regulation (TDLR)

Requirements:

48 months practical experience under licensed contractor supervision OR technician certificate + 3 years experience
Pass licensing exam with 70% or higher score
Commercial general liability insurance
8 hours annual continuing education including 1 hour Texas law

License Fees:

Initial:$115

Renewal:Annual

Exam fee: $74, Technician certification: $50

Insurance Requirements:

Commercial general liability insurance (amount varies)

Plumbing Contractor

Licensing Authority:

Texas State Board of Plumbing Examiners (TSBPE)

Requirements:

Responsible Master Plumber (RMP) designation required
$300,000 commercial liability insurance
6 hours annual continuing education
One-time fingerprint submission required

License Fees:

Initial:Tradesman: $36 + $35 license | Master: $175 exam + $75 license

Renewal:Annual renewal varies by license level

RMP: $225 designation fee (required for contractors)

Insurance Requirements:

$300,000 commercial liability insurance minimum

Additional Resources

Local Requirements

Many Texas cities and counties have their own licensing and permit requirements for contractors, especially for general construction work.

• Check with local building departments
• Verify permit requirements for your work type
• Some cities require contractor registration

Business Registration

All contractors must register their business entity with the Texas Secretary of State and may need additional local business licenses.

• Register LLC, Corporation, or Partnership
• Obtain EIN from IRS
• Check local business license requirements

Texas Service Areas

We provide comprehensive contractor insurance coverage across all 254 Texas counties, with expertise in the unique requirements of Texas's major metropolitan areas.

Houston

Harris County

Construction

City Pop.

2.3M

Metro

7.2M

Key Features:

Largest city in Texas
Energy capital
Major port city

San Antonio

Bexar County

Construction

City Pop.

1.5M

Metro

2.7M

Key Features:

Military city
Tourism hub
Historic downtown

Dallas

Dallas County

Construction

City Pop.

1.3M

Metro

8.1M

Key Features:

Financial center
Corporate headquarters
DFW Metroplex

Austin

Travis County

Construction

City Pop.

965K

Metro

2.4M

Key Features:

State capital
Tech hub
Fastest growing

Fort Worth

Tarrant County

Construction

City Pop.

935K

Metro

8.1M

Key Features:

Cultural district
Aviation industry
Western heritage

El Paso

El Paso County

Construction

City Pop.

695K

Metro

845K

Key Features:

Border city
International trade
Military presence

Fastest Growing Counties (2024)

6.0%

Kaufman County

Southeast of Dallas

5.4%

Liberty County

Houston area

4.8%

Montgomery County

North of Houston

4.2%

Williamson County

Austin metro

Statewide Coverage Across All 254 Counties

From the Panhandle to the Rio Grande Valley, we understand the unique insurance requirements and regulations that vary across Texas's diverse regions.

Geographic Diversity

Coverage for desert, coastal, plains, and forest regions with specialized local knowledge

Industry Expertise

Specialized coverage for oil & gas, renewable energy, and traditional construction

Growth Support

Scalable insurance solutions that grow with Texas's booming construction market

Business Structure

Texas Business Formation for Contractors

Choose the right business structure to maximize tax benefits and protect your assets in Texas.

Limited Liability Company (LLC)

Filing Fee: $300

Best For:

Most contractors

Advantages

Personal liability protection
Tax flexibility
Simple management structure
No personal income tax in Texas

Considerations

Self-employment tax on all income
Limited life in some cases

Corporation (C-Corp)

Filing Fee: $300

Best For:

Large contractors with multiple owners

Advantages

Strong liability protection
Easy to raise capital
Perpetual existence
Employee benefits deductible

Considerations

Double taxation
More complex requirements
Corporate formalities required

Sole Proprietorship

Filing Fee: $0

Best For:

Very small operations only

Advantages

Simple to start
Complete control
Direct tax benefits
Minimal paperwork

Considerations

Personal liability exposure
Difficult to raise capital
Limited credibility

Texas Business Formation Process

Choose Entity Type

Select LLC, Corporation, or other structure based on your needs

File with Texas SOS

Submit Certificate of Formation online or by mail with $300 fee

Obtain EIN

Get Federal Employer Identification Number from IRS (free)

Local Licenses

Apply for local business licenses and permits as required

How to Start Your LLC in Texas

Complete step-by-step guide to forming your contractor LLC in Texas

Total Cost: $300 state fee + optional services

Step 1: Choose Your LLC Name

Must include "LLC" and be unique in Texas

Free (or $40 to reserve)

Check availability at sos.state.tx.us.
Must not conflict with existing businesses.
Cannot mislead about services offered.
Reserve name for $40 if needed (120 days).

Step 2: Appoint Registered Agent

Required Texas resident or entity to receive legal documents

$0-$300/year

Must have TX street address (no P.O. boxes).
Available during business hours.
Can be owner, employee, or service company.
Required for entire life of LLC.

Step 3: File Certificate of Formation

Submit formation documents to Texas Secretary of State

$300 state fee

File online at sos.state.tx.us.
Include business name and registered agent.
Specify management structure.
Processing takes 5-7 business days.

Step 4: Create Operating Agreement

Define ownership structure and operational procedures

$0-$1,500

Not required but highly recommended.
Protects multi-member LLC interests.
Establishes management structure.
Defines profit/loss distribution.

Step 5: Obtain Federal EIN

Get Employer Identification Number from IRS

Free from IRS

Required for tax filings and banking.
Apply online at irs.gov (completely free).
Available immediately upon approval.
Needed even for single-member LLCs.
Never pay third-party services - IRS never charges.

Step 6: Register for Texas Taxes

Free

Sales tax registration if applicable.
Franchise tax (margin tax) registration.
Employment tax registration if hiring.
Online registration available at comptroller.texas.gov.

Get Your Federal EIN (FEIN) - Free from IRS.gov

Note: EIN, FEIN, Tax ID Number, Federal Tax ID, and Employer Tax ID all refer to the same 9-digit number (XX-XXXXXXX format). Different forms and agencies may use different names, but they're all requesting the same identifier.

Official IRS Website:

• Apply online at irs.gov/businesses
• Completely free - IRS never charges fees
• Available immediately upon completion
• Required for business banking and taxes

Avoid Third-Party Scams:

• Never pay companies charging EIN fees
• Only use official irs.gov website
• Beware of misleading advertisements
• EIN application is always free from IRS

Why Texas is Great for Contractor LLCs

No State Income Tax

Texas has no state income tax on business or personal income

Business-Friendly Environment

Ranked #1 for business climate with minimal regulations

Massive Construction Market

Largest construction market in the US with continuous growth

Texas Franchise Tax (Margin Tax) - Important Information

Franchise Tax Requirements:

• Required for most LLCs doing business in Texas
• Based on taxable margin, not gross revenue
• Annual report and tax due May 15th
• $0 tax if total revenue under $1.23 million

Filing Information:

• File online at comptroller.texas.gov
• First report due within 1 year of formation
• Penalties for late filing can be substantial
• Consider consulting a Texas tax professional

Note: While Texas has no income tax, the franchise tax applies to most business entities. Consult with a Texas CPA or attorney for specific guidance on your tax obligations.

County & Municipal Licensing Requirements

Additional licensing requirements by major Texas counties

Harris County (Houston)

Population: 4,731,145

Special Notes:

Largest county in Texas. Major energy sector hub with specialized industrial and petrochemical construction requirements. Hurricane flooding considerations required.

Business Personal Property

$50-$500

Required for all businesses operating in Harris County.

Renewal: AnnualInfo

Building Permits

Varies by project

Required for construction work in unincorporated areas.

Renewal: Per projectInfo

Contractor Registration

$25-$150

Additional registration for contractors in certain jurisdictions.

Renewal: AnnualInfo

Houston City License

$50-$300

Required for work within Houston city limits.

Renewal: AnnualInfo

Dallas County

Population: 2,613,539

Special Notes:

Major commercial and residential development center. High-rise construction projects common. Dallas city has additional strict licensing requirements.

Business Personal Property

$50-$400

Required for businesses in Dallas County.

Renewal: AnnualInfo

Building Permits

Based on project value

Required through local municipal offices.

Renewal: Per projectInfo

Dallas City License

$75-$250

Required for contracting work within Dallas city limits.

Renewal: AnnualInfo

Tarrant County (Fort Worth)

Population: 2,110,640

Special Notes:

Growing metropolitan area with significant residential and commercial development. Fort Worth has specific contractor licensing requirements.

Business Personal Property

$25-$300

Required for county business operations.

Renewal: AnnualInfo

Building Permits

Varies by scope

Required for construction projects.

Renewal: Per projectInfo

Fort Worth City License

$50-$200

Required for work within Fort Worth city limits.

Renewal: AnnualInfo

Bexar County (San Antonio)

Population: 2,009,324

Special Notes:

Historic preservation requirements in many areas. Military construction projects common due to multiple bases. South Texas climate considerations.

Business Personal Property

$50-$350

Required for businesses in Bexar County.

Renewal: AnnualInfo

Building Permits

Based on project scope

Required for construction work.

Renewal: Per projectInfo

San Antonio City License

$75-$275

Required for contracting within San Antonio city limits.

Renewal: AnnualInfo

Travis County (Austin)

Population: 1,290,188

Special Notes:

High-tech corridor with sustainable building requirements. Austin city has comprehensive green building standards and strict permitting processes.

Business Personal Property

$50-$400

Required for county operations.

Renewal: AnnualInfo

Building Permits

Based on project value

Required for construction projects.

Renewal: Per projectInfo

Austin City License

$100-$350

Required for contracting work in Austin.

Renewal: AnnualInfo

Green Building Compliance

$50-$200

Required for projects meeting certain thresholds.

Renewal: Per projectInfo

Texas Business Licensing Notes

State-Level Requirements:

• No statewide contractor licensing required
• Workers' compensation insurance optional but recommended
• General liability insurance highly recommended
• Trade-specific licenses required for electrical, plumbing, HVAC

Local Considerations:

• Business personal property taxes vary by county
• Building permits required for most construction work
• Major cities have additional contractor registration requirements
• Check municipal requirements before starting work in city limits

Why Choose CCA for Texas Insurance?

Specialized expertise for Texas contractors with deep market knowledge and competitive rates

Texas Market Expertise

Deep understanding of Texas construction markets, local regulations, and no-license state requirements

Energy Sector Specialists

Specialized coverage for oil & gas, renewable energy, and petrochemical construction projects

Competitive Texas Rates

Access to multiple carriers familiar with Texas construction risks for the best pricing options

Fast Service & Quotes

Quick quotes and efficient processing for urgent project needs and rapid business growth

Claims Support Excellence

Expert assistance throughout the claims process with Texas-specific legal and regulatory knowledge

Multi-County Coverage

Comprehensive understanding of requirements across all 254 Texas counties and major metropolitan areas

15+ Years

Texas Market Experience

254 Counties

Statewide Coverage

24/7

Claims Support

Energy Sector Expertise

• Oil & gas construction projects
• Renewable energy installations (wind, solar)
• Petrochemical plant construction
• Pipeline and infrastructure work
• Specialized environmental compliance

Texas Regulatory Support

• No-license state navigation guidance
• Local municipal requirement compliance
• Trade-specific licensing support
• Workers' comp consultation (optional in Texas)
• Multi-county operation guidance

Starting a Business in Texas

Official TX Business Registration:sos.state.tx.us

Business Structure Options

LLC

Most popular choice for contractors - flexible and simple

$300

2-3 business days

Limited liability protection
Pass-through taxation (no state income tax)
Flexible management structure
Fewer formal requirements than corporation

Corporation

Traditional business structure with formal requirements

$300

2-3 business days

Strong liability protection
Professional credibility
Easier access to capital and bonding
No state income tax on corporate earnings

Partnership

For contractors working with business partners

$750

2-3 business days

Shared management responsibilities
Pass-through taxation
Flexible profit sharing
Subject to Texas franchise tax

Business Registration Process

Choose Business Structure

Select LLC, Corporation, or Partnership based on your contracting needs

1 day

Free consultation

Reserve Name (Optional)

Reserve your business name with Texas Secretary of State for 120 days

1-2 days

$40

File Formation Documents

Submit Certificate of Formation online at sos.state.tx.us

2-3 business days

$300-$750

Obtain Federal EIN

Get Federal Employer Identification Number from IRS at irs.gov (completely free)

Same day

Free from IRS

Register for State Taxes

1-2 days

Free

Get Required Insurance

Obtain contractor insurance and bonding before beginning operations

1-3 days

Varies by coverage

Important Texas Business Registration Notes

Required Information:

• Business name and registered address
• Registered agent information (required)
• Business purpose and activities
• Organizer/incorporator information

Ongoing Requirements:

• Franchise tax report due May 15th annually
• Maintain registered agent in Texas
• File periodic reports as required
• Renew contractor licenses and insurance

Texas Business Advantages for Contractors

Tax Benefits:

• No state income tax on personal or corporate income
• Franchise tax only applies to entities with revenue over $1.18M
• Sales tax exemptions for construction materials
• Favorable depreciation schedules for equipment

Business Environment:

• Business-friendly regulatory environment
• Strong construction and infrastructure markets
• Access to major metropolitan areas
• Competitive insurance and bonding markets

Why Form a Business Entity for Your Texas Contracting Company?

Protect yourself, take advantage of Texas's business-friendly tax environment, and grow your contracting business

Liability Protection

Personal assets protected from business debts, lawsuits, and contractor claims

Tax Advantages

No state income tax plus franchise tax exemptions for smaller businesses

Professional Credibility

Enhanced business credibility with clients, suppliers, and bonding companies

Business Growth

Easier access to business credit, loans, and investment opportunities

Employee Benefits

Ability to offer competitive benefits packages and attract skilled workers

Licensing Compliance

Meets Texas contractor licensing requirements and bonding capacity

Texas Business Entity Comparison

Aspect	Sole Proprietorship	LLC	Corporation
Personal Liability	Unlimited personal liability	Limited liability protection	Complete liability shield
Texas Franchise Tax	Not applicable	Exempt if revenue under $1.18M	Exempt if revenue under $1.18M
State Income Tax	No state income tax	No state income tax	No state income tax
Business Credibility	Limited professional image	Professional business structure	Maximum credibility with clients
Bonding Capacity	Personal credit dependent	Business credit builds capacity	Highest bonding capacity
Operational Complexity	Simple operations	Moderate requirements	Formal requirements (bylaws, meetings)
Formation Cost	$0 (DBA filing ~$25)	$300 + registered agent	$300 + registered agent

Texas Business Formation Advantages

No State Income Tax

Texas has no state income tax for individuals or corporations, maximizing your take-home profits

Franchise Tax Threshold

Businesses with total revenue under $1.18 million are exempt from Texas franchise tax

Business-Friendly Environment

Texas consistently ranks as one of the top states for business formation and growth

Understanding Texas Franchise Tax for Contractors

Franchise Tax Rates (2024):

• Retail/Wholesale: 0.375% of taxable margin
• Other businesses: 0.75% of taxable margin
• E-Z Computation: 0.331% of total revenue
• Minimum tax: $0 (if under threshold)

Exemptions for Contractors:

• Total revenue under $1.18M = No franchise tax
• Sole proprietorships are exempt
• General partnerships are exempt
• Annual report due May 15th

Ready to Form Your Texas Contracting Business?

Take advantage of Texas's business-friendly environment and get proper formation and insurance protection

Texas Insurance & Regulatory Resources

Essential state-specific resources for contractors in the Lone Star State

Texas Department of Licensing and Regulation (TDLR)

• Electrical contractor licensing
• HVAC technician certification
• License verification search
• Exam scheduling and preparation
• Continuing education requirements

Visit TDLR

Texas State Board of Plumbing Examiners (TSBPE)

• Plumbing contractor licensing
• Master plumber certification
• Journeyman plumber licensing
• Continuing education courses
• Exam requirements and scheduling

Visit TSBPE

Texas Secretary of State

• Business entity formation
• Corporation and LLC registration
• Assumed name certificates
• Registered agent services
• Business entity search

Visit SOS

Texas Comptroller of Public Accounts

• Sales tax permit registration
• Franchise tax requirements
• Business tax account setup
• Tax filing and payment systems
• WebFile online services

Visit Comptroller

Texas Commission on Environmental Quality (TCEQ)

• Environmental permits and licensing
• Air quality regulations
• Water quality standards
• Waste management requirements
• Construction site permits

Visit TCEQ

Texas Workers' Compensation Division (TDI-DWC)

• Workers' compensation coverage requirements
• Injury reporting procedures
• Safety training resources
• Claims management guidance
• Coverage verification system

Visit TDI-DWC

Additional Texas Resources

Local and federal resources essential for Texas contractors

Local Building Departments

Contact your city or county building department for local permits and inspections

• Houston: (832) 394-8800

• Dallas: (214) 948-4480

• Austin: (512) 978-4000

Texas Insurance Department

Insurance regulations, agent verification, and consumer protection resources

Visit TDI

Federal Resources

OSHA safety requirements, EPA regulations, and federal contractor resources

• OSHA Dallas: (972) 850-4145

• EPA Region 6: (214) 665-2200

Need Help Navigating Texas Requirements?

Our Texas contractor insurance specialists are here to help you understand state requirements and find the right coverage.

Get Your Quote (844) 967-5247

Texas Trade-Specific Requirements & Development

Comprehensive licensing, education, and career opportunities for Texas contractors across specialized trades

Electrical Contractors

$62,000 - $98,000

+9% (2023-2033)

Licensing Requirements

TDLR Electrical Contractor License required
Master Electrician certification mandatory
$300,000 minimum general liability
Workers compensation required
Electrical Safety and Related Work Practices exam

Continuing Education

8 hours continuing education every 2 years
National Electrical Code (NEC) updates
OSHA 10-hour safety training required
Arc flash and electrical safety training

Texas Specializations

Residential and commercial wiring
Industrial electrical systems
Solar panel installation and grid-tie systems
Electric vehicle charging stations
Oil and gas electrical infrastructure

Insurance Considerations

• Higher liability limits for oil & gas work
• Errors & omissions coverage recommended
• Equipment coverage for expensive tools

Plumbing Contractors

$55,000 - $92,000

+14% (2023-2033)

Licensing Requirements

TSBPE Plumbing Contractor License required
Master Plumber certification mandatory
$300,000 minimum general liability
Responsible Master Plumber designation
Plumbing Inspector endorsement available

Continuing Education

8 hours continuing education every 2 years
Texas Plumbing License Law updates
Water quality and conservation training
Green plumbing and efficiency standards

Texas Specializations

Residential and commercial plumbing
Water treatment and filtration systems
Sewer line inspection and repair
Backflow prevention systems
Gas line installation and repair

Insurance Considerations

• Water damage liability coverage essential
• Pollution liability for sewer work
• Completed operations coverage important

HVAC Contractors

$58,000 - $95,000

+15% (2023-2033)

Licensing Requirements

TDLR Air Conditioning and Refrigeration Contractor License
TDLR Technician Registration required
$300,000 minimum general liability
EPA Section 608 refrigerant handling certification
NATE certification recommended

Continuing Education

8 hours continuing education every 2 years
Energy efficiency standards and codes
Indoor air quality requirements
Heat pump technology and installation

Texas Specializations

Residential and commercial HVAC systems
Industrial refrigeration systems
Energy-efficient system design
Indoor air quality solutions
Commercial building automation

Insurance Considerations

• Refrigerant pollution liability coverage
• Equipment breakdown coverage recommended
• Professional liability for system design

General Contractors

$68,000 - $125,000

+11% (2023-2033)

Licensing Requirements

No state-level general contractor license required
Local licensing varies by municipality
$500,000+ general liability recommended
Business registration with Secretary of State
Sales tax permit from Texas Comptroller

Continuing Education

Local continuing education varies
Building code updates as required
Business management and estimating
Safety management and OSHA compliance

Texas Specializations

Custom home construction
Commercial building projects
Renovation and remodeling
Storm damage restoration
Oil and gas facility construction

Insurance Considerations

• Comprehensive general liability essential
• Builder's risk for new construction
• Professional liability for design-build

Roofing Contractors

$52,000 - $96,000

+13% (2023-2033)

Licensing Requirements

No state license required for roofing
Local licensing requirements vary
$500,000+ general liability recommended
Manufacturer certifications beneficial
Storm damage restoration certifications

Continuing Education

Local continuing education as required
Building code updates
Storm damage assessment training
Safety training and fall protection

Texas Specializations

Residential re-roofing and repairs
Commercial flat roof systems
Storm and hail damage restoration
Metal roofing installation
Solar panel integration

Insurance Considerations

• Higher liability limits due to fall risks
• Completed operations essential for warranty work
• Weather-related damage considerations

Specialty Trade Contractors

$48,000 - $85,000

+12% (2023-2033)

Licensing Requirements

Various specialty licenses through TDLR
Includes concrete, tile, painting, etc.
$300,000 minimum general liability
Trade-specific certifications available
Local licensing may be required

Continuing Education

Trade-specific continuing education
Safety training requirements
Environmental compliance training
Business management courses

Texas Specializations

Concrete construction and finishing
Painting and coating application
Flooring and tile installation
Insulation and weatherization
Fencing and outdoor structures

Insurance Considerations

• Trade-specific liability coverage
• Equipment and tools coverage
• Completed operations for warranty work

Texas Contractor Development Resources

Professional development opportunities and continuing education providers in Texas

TDLR Approved Schools

Find approved continuing education providers and course offerings throughout Texas

Visit TDLR

Industry Associations

Join professional associations for networking, training, and industry updates

• Texas Association of Builders

• Associated General Contractors of Texas

License Renewal

Stay current with renewal deadlines and continuing education requirements

• Annual or biennial renewal

• 8 hours CE every 2 years (varies by trade)

Texas Construction Industry Outlook

Strong growth opportunities across all trades with expanding energy and construction markets

+12%

Average Job Growth

2023-2033 Projection

$82K

Median Salary

Across All Trades

254

Texas Counties

Work Opportunities

$4.1B

Energy Sector

Market Opportunity

Financial Requirements & Bonding

Understanding Texas bonding and financial responsibility requirements

State-Level Requirements

Texas Department of Licensing & Regulation:

• No state-level contractor bonds required
• Electrical contractors: $10,000 surety bond
• Air conditioning contractors: $10,000 bond
• Individual city/county requirements apply

Public Works Projects:

• Payment bonds: 100% of contract value
• Performance bonds: 100% of contract value
• Required for contracts over $25,000
• Maintenance bonds may be required

Municipal Bonding Requirements

Major Cities:

• Houston: $10,000-$50,000 depending on trade
• Dallas: $5,000-$25,000 contractor bonds
• San Antonio: $10,000-$50,000 bonds
• Austin: $25,000-$100,000 bonds

Bond Types by Trade:

• General contractors: $25,000-$100,000
• Plumbing contractors: $10,000-$25,000
• Electrical contractors: $10,000-$50,000
• HVAC contractors: $10,000-$25,000

Texas Lien Laws & Payment

Notice Requirements:

• Notice to Owner: By 15th day of 2nd calendar month
• Lien affidavit filing: By 15th day of 3rd month
• Enforcement suit: Within 2 years of filing
• Original contractors: No preliminary notice required

Payment Timing:

• Private projects: Payment within 35 days
• Public projects: Payment within 35 days
• Retainage: Max 10% until 50% completion, then 5%
• Final payment: Within 30 days of completion

Surety Bond Providers

Bond Requirements:

• Treasury-listed surety companies only
• A.M. Best rating of A- or higher preferred
• Attorney-in-fact power of attorney required
• Annual renewal with updated financial data

Cost Factors:

• Bond amount and duration
• Personal and business credit scores
• Financial statements and work history
• Typical rates: 1-3% of bond amount annually

Environmental & Safety Regulations

Texas-specific environmental and safety compliance requirements

TCEQ Environmental Compliance

• Air quality permits and monitoring
• Water discharge permits (TPDES)
• Stormwater pollution prevention
• Waste management regulations
• Underground storage tank compliance
• Hazardous materials handling

Texas TCEQ

OSHA Safety Requirements

• Federal OSHA standards apply
• Fall protection in construction
• Excavation and trenching safety
• Personal protective equipment
• Hazard communication standards
• Electrical safety compliance

OSHA Standards

Texas Building Codes

• 2021 International Building Code adopted
• Hurricane/wind resistance (coastal areas)
• Energy efficiency standards
• Accessibility compliance (ADA/TAS)
• Fire safety requirements
• Structural design standards

Texas TDLR

Oil & Gas Industry Requirements

Railroad Commission of Texas:

• Pipeline construction regulations
• Well completion and workover permits
• Surface casing and cementing requirements
• Environmental protection standards
• Operator registration and bonding

Process Safety Management:

• PSM for refineries and chemical plants
• Hazard analysis requirements
• Operating procedures documentation
• Employee training and certification

Gulf Coast Environmental

Coastal Construction:

• Coastal Coordination Council permits
• Shoreline alteration permits
• Dune protection requirements
• Hurricane evacuation zone compliance
• Flood zone construction standards

Marine & Waterway Projects:

• US Army Corps of Engineers permits
• Clean Water Act Section 404 permits
• Endangered species consultations
• Navigation clearance requirements

Texas-Specific Safety Considerations

Extreme Weather Preparedness:

• Hurricane season planning (coastal areas)
• Tornado safety protocols (northern regions)
• Extreme heat work restrictions
• Flash flood emergency procedures
• Winter storm contingency plans

Industry-Specific Hazards:

• Hydrogen sulfide exposure (oil & gas)
• Silica dust protection (fracking operations)
• Chemical plant safety protocols
• High-voltage electrical work safety
• Confined space entry procedures

Texas Specialty

Energy Industry Construction Requirements

Texas leads the nation in energy production, creating unique opportunities and requirements for contractors in oil & gas, renewable energy, and emerging hydrogen markets.

Oil & Gas Construction

Pipeline, refinery, and drilling platform construction

Special Requirements

Enhanced environmental liability coverage
Pollution and contamination insurance
Specialized equipment coverage
Pipeline contractor endorsements

Insurance Minimums

general:$2M - $5M per occurrence

pollution:$1M - $10M per occurrence

equipment:Replacement cost coverage

Renewable Energy Projects

Wind farms, solar installations, and battery storage

Special Requirements

Renewable energy contractor coverage
Equipment breakdown protection
Performance bond requirements
Weather-related delay insurance

Insurance Minimums

general:$1M - $3M per occurrence

equipment:Full replacement value

performance:100% project value bond

Gulf Coast Hydrogen Hub

Hydrogen production and infrastructure development

Special Requirements

Hazardous materials coverage
Process safety management compliance
Specialized trade certifications
Environmental compliance bonding

Insurance Minimums

general:$3M - $10M per occurrence

environmental:$5M - $25M per occurrence

bonding:Project-specific requirements

Safety & Compliance Requirements

Energy sector construction in Texas requires adherence to strict safety and environmental regulations. Contractors must maintain compliance with multiple state and federal agencies.

Process Safety Management (PSM)

Required for facilities with hazardous chemicals above threshold quantities

Written process safety information
Process hazard analysis
Operating procedures documentation
Employee training programs

Environmental Compliance

Texas Commission on Environmental Quality (TCEQ) requirements

Air quality permits for emissions
Water discharge permits
Waste management compliance
Spill prevention and response plans

Railroad Commission Oversight

For oil and gas related construction activities

Pipeline safety compliance
Well completion notifications
Production facility permits
Environmental impact assessments

Texas Energy Construction Outlook

$2.5B

Energy Sector Investment

Category 11 Program

45K

New Jobs

Gulf Coast Hydrogen Hub

Wind Energy

National leader

Oil Production

Largest producer

Professional Associations & Resources

Connect with Texas contractor associations and professional development resources

State Contractor Associations

Associated General Contractors of Texas
Commercial construction and general contractors
Visit TSPE
Associated Builders and Contractors of Texas
Merit shop construction industry
Visit TAB
Texas Association of Builders
Residential construction and home building
Visit TAB
Texas Concrete Association
Concrete construction professionals
Visit TCA
National Roofing Contractors Association
Commercial and residential roofing
Visit NRCA
Texas Society of Professional Engineers
Engineering professionals in construction
Visit TSPE

Training & Education Resources

University of Texas Construction Engineering
Degree programs and continuing education
Visit UT Austin
Texas State Technical College Construction
Technical and trade education programs
Visit TSTC
Texas Workforce Commission Apprenticeships
Registered apprenticeship opportunities
Visit TWC
Construction Career Collaborative
Construction workforce development
Visit CCC
National Center for Construction Education
Construction management certification
Visit NCCER

Business Development Resources

Texas SBDC Network
Small business consulting and training
Visit TX SBDC
SCORE Texas
Free business mentoring and workshops
Visit SCORE
Texas Economic Development Corporation
Business development and incentives
Visit TEDC
Greater Houston Partnership
Houston area business development
Visit GHP
Dallas Regional Chamber
Dallas-Fort Worth business resources
Visit DRC
Austin Chamber of Commerce
Austin area business support
Visit Austin Chamber

Contractor Insurance in Neighboring States

Expanding your contracting business beyond Texas? Explore insurance requirements in neighboring states:

Southwest Region

Oklahoma Contractor Insurance
Construction Industries Board requirements and energy sector opportunities
Arkansas Contractor Insurance
Affordable business formation and growing construction market

Cross-Regional Operations

Many Texas contractors also operate in these high-growth markets:

Texas FAQ

Frequently Asked Questions

Everything you need to know about contractor licensing, insurance, and business requirements in Texas.

Licensing Requirements

Insurance Requirements

Business Formation

Industry & Market

Regulations & Compliance

Still Have Questions?

Our Texas insurance experts are here to help you navigate the unique requirements of the Lone Star State's construction industry.

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Contact Our Texas Team

Call Us

(555) 123-4567

Email Us

texas@contractorschoice.com

Serving All Texas

All 254 counties covered

Business Hours

Mon-Fri 8AM-6PM CST

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Texas Resources

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Aspect

Sole Proprietorship

LLC

Corporation

Personal Liability

Unlimited personal liability

Limited liability protection

Complete liability shield

Texas Franchise Tax

Not applicable

Exempt if revenue under $1.18M

State Income Tax

No state income tax

Business Credibility

Limited professional image

Professional business structure

Maximum credibility with clients

Bonding Capacity

Personal credit dependent

Business credit builds capacity

Highest bonding capacity

Operational Complexity

Simple operations

Moderate requirements

Formal requirements (bylaws, meetings)

Formation Cost

$0 (DBA filing ~$25)

$300 + registered agent

Contractor Insurance in Neighboring States

Expanding your contracting business beyond Texas? Explore insurance requirements in neighboring states:

Southwest Region

Oklahoma Contractor Insurance
Construction Industries Board requirements and energy sector opportunities
Arkansas Contractor Insurance
Affordable business formation and growing construction market

Cross-Regional Operations

Many Texas contractors also operate in these high-growth markets: