Starting Electrical Contractor Business
5/28/2019 at 9:57:04 PM
Hello I am a recent master electrician graduate in Toronto Ontario. I am setting up my own business to do small residential service call work. I am only going to be working fr myself, no employees. What should I charge for a half day work 4hrs or full day work 8hrs?
I do not have any dependents and my cost of living is quite low but what should I be looking to earn per week of work? How much do I mark up material?
I know these questions are based on ones specific overhead but what is a general ball park number to aim for when starting out?
5/29/2019 at 7:49:36 AM
Good morning,
Any materials you purchase should be marked up 20-25% your call. Electricians work by the hour so self employed doing residential work need to pay for WSIB, need to factor in business insurance, truck payments, truck repairs and fuel. My advice call an electrical company and ask what the charge by the hour this should help you be competitive. Don't undercut competitor just to get work.
5/29/2019 at 9:50:31 AM
Hi George,
It depends on the work you take, like if you are fixing pot lights some people charge $40 to $70 depend on site number of lights etc
Thanks,
Adeeb.
5/31/2019 at 12:50:25 PM
This is what I posted in anotherlocation recently when the same question came up...
Basic costs no matter how much or how big you grow...
Setting up business (recommend Federal Incorporation) $1000 to $2000 onetime cost and $50 per year maintenance
Accountant - $1000 per year plus costs for tax submissions
GST / HST Registration = Free
CRA Payroll Registration = Free
WSIB Registration = Free. Additional costs with an annual minimum are required in most provinces.
Corporate Insurance = will vary depending on coverage such as O&E. $2000 to $25000
Electrical Contracting Insurance = will vary on coverage, minimum is about $2000 per year
Business License = If you go federal incorp, you do not need a provincial business license. If you go provincial incorp you are good for your province, but not the rest of the country. If you go sole or anything else, you will likely need city and regional licenses. You will have to register with the province for sales tax too.
Electrical Contractor License = about $400 per year in Ontario.
Masters Electrician License = Required in most provinces, about $80 per year in Ontario.
Journeyman License = About $120 year in Ontario...
Anything beyond that is what your expenses and expected wages are, then you need to add margin and profit.
John Kuehnl-Cadwell, CD, ME
Master Electrician
Datawise Solutions Inc
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