How To Get Your Water Damage Restoration Business Registered?

Water Damage Restoration service is always in high demand by homeowners to get their homes restored to their previous condition, and because this is something that most homeowners try not to do by themselves, the demand and profitability are really appealing.


So if you want to know how to get your water damage restoration business registered? Then this guide is just what you need today!

Read: How To Start A Water Damage Restoration Business?

How To Get Your Water Damage Restoration Business Registered?

Let us have a look at the step-by-step process to start a water damage restoration business:

1. Choose a Business Structure

Choose a Business Structure

The very first step is to choose a business structure because this is going to affect the way you file your taxes, your everyday business expenses, insurance claims, etc.

These are few common types of business structures that you can choose from:

  • Sole proprietorship: In this type of structure, your personal liabilities and assets are not separated from your business, and in this case, the business is run by only one person. Also, Sole proprietorship is considered as default business structure which means if you do not select any structure, this will apply to your business automatically.
  • Partnership: As the name suggests, this kind of structure applies to two or more people working together. There are different kinds of partnerships, and you can choose the one that fits you and your business type.
  • Limited liability corporation (LLC): This type of structure safeguards the owner’s assets from the liabilities of the business, and the profit and loss in this structure are taxed as personal income.
  • C-Corp: This business structure provides the most protection to the business owner because, in this, the business and its owner are considered separate.

2. Select A Location

Select A Location

Once you know what kind of business entity you want to register as the next step is to select your business location.

Now, this does not mean you need to have a brick-and-mortar office; you can run your business online too.

But provide an address so that you can receive any important documentation or files, so that you can do tax filing, open a business account, etc.

3. Choose A Business Name

Choose A Business Name

An imporatant step in registering your business is to get your business name registered.

Your business name represents you and plays one of the key roles in creating a good impression on people.

However, there are certain criteria that you must pass in order to get your desired water damage restoration business name:

  • First of all, you need to run a name search so that you know your desired name is not already taken. Now each state has a set of criteria that you must fulfill in order to get your desired business name. This is done so that businesses can be distinguished from one another and can maintain their identity.
  • Some states also restrict and prohibit the use of certain names and have industry-specific quality control. So make sure to check with your state and keep a couple of business name options handy.
  • Last but not least, if you already own a business and a business name and want to take your business to another state where your business name is already taken, then you will be required to register for a fictitious name or DBA “Doing business name.”

4. Register With IRS

Register With IRS

Register with the IRS so you can receive your Employer Identification Number (EIN), which acts as a social security number for your business.

EIN is also required to file your taxes, so make sure not to skip any of these steps.

5. Register With Local/State Agencies

If your business is LLC, partnership, corporation, or nonprofit corporation, then you will be required to file for permits and licenses from your local agency or state office.

Your local government will determine the licensing, registration, and permitting requirements, so make sure to give them a visit.

Also, if you are going to run payroll, then you will have to register to file payroll taxes to your local or state government.

6. Get a Registered Agent

Get a Registered Agent

Again, if you are a corporation, LLC, partnership, or nonprofit corporation, then you will require a registered agent to receive official paperwork, legal documents, etc., on the company’s behalf.

It is compulsory to get a registered agent in the state of your business, and many business owners prefer to get a registered agent service rather than doing this role themselves.

7. Tax Registration

Depending on the kind of business ownership you have, you will need to register for all or a mix of taxes, including income tax, sales tax, franchise tax, employment tax, etc.

For this, you will have to apply for tax identifications such as FEI or federal employer identification number and then complete periodic tax and filings from time to time.

8. Acquire Licenses And Permits

Acquire Licenses And Permits

In a water damage restoration business, you are also required to do mold inspection sometimes. And thus it is important to have the necessary license.

You will definitely need this license if you belong to Florida, Maryland, Tennessee, Louisiana, Mississippi, and Texas.

Also, note that you need an inspector and contractor license, but you cannot undertake both duties.

If you are inspecting molds, then you cannot work as a contractor for the same client and vice versa.

Many states do not require any license for starting a water restoration business; however, you will need ANSI-IICRC certification or IICRC certification, and even earning a diploma or certificate can help boost your confidence, client.

Once your business is on, you can now start spreading the word and acquiring clients.

Documents & Fees

The cost to register your business may vary depending on state, but you can expect it to be around $300.

The information you need to give in order to register your water restoration business is:

  • Name of your business
  • Business location
  • Ownership type
  • Registered agent information
  • Management structure

You might need the following kinds of documents for registering your business:

  • LLC operating agreement
  • Limited partnership agreement
  • Certificate of limited partnership
  • Bylaws or resolutions
  • Certificate of limited liability partnership
  • Articles of incorporation, etc.

You Can Also Read: 15 Foolproof Methods To Get Water Damage Restoration Leads 


Starting a water damage restoration business or any other business for that matter is not a cakewalk.

But if you want to have something of your own, if you want to be your own boss, then you will have to go through the many steps of starting this business.

We hope you found this guide on How to get your water damage restoration business registered helpful.

Read: How To Price A Water Damage Restoration Service?


Do you need license for providing water restoration services in Florida?

You do not require a water restoration certification or license in Florida.

However, if you are repairing for water restoration or contract activities, then you might have to check with Florida’s State License Board.

What does water mitigation means?

Water mitigation means accessing the cause of water and stopping it by extracting and drying out water.

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