How to start a framing business
Most framing companies start as a lead carpenter with one crew and one or two builders. Get the entity, license, insurance, and fall protection plan in place first, price per square foot from real crew hours, and keep the paperwork tight so draws get paid.
To start a framing business, form an entity and get an EIN, check state and local contractor licensing, buy general liability and workers' compensation insurance, write a fall protection program, assemble a crew and tools, set prices per square foot from real crew hours, and win your first builders and general contractors with reliable schedules and clean paperwork. Most framers work as subcontractors, so payment terms, insurance certificates, and change orders shape your cash flow as much as how fast your crew stands walls.
Step by step: starting a framing company
- Decide your market and write a plan. Residential production homes, custom homes, multifamily, or commercial wood frame each have different builders, pay terms, and crew sizes. The U.S. Small Business Administration describes a traditional business plan (executive summary, company description, market analysis, organization, service line, marketing, funding request, financial projections) and a shorter lean plan. Pick the one your bank or equipment lender wants.
- Decide labor-only or furnish-and-install. Labor-only framing needs less cash because the builder buys lumber. Furnish-and-install pays more but puts lumber price swings and supplier credit on you. Many framers start labor-only.
- Form the business and register it. An LLC or corporation separates business and personal assets. The U.S. Small Business Administration notes that LLCs and corporations register with the state where they do business and that most states require a DBA if you trade under another name.
- Get an EIN. Apply with the IRS. The IRS says you never have to pay a fee for an EIN.
- Check licensing. Some states license framing under a general contractor or residential builder license, some under a specialty carpentry classification, and some leave it to local registration. Builders will ask for your license number. Start at the contractor license hub.
- Buy insurance. General liability insurance and workers' compensation are what builders check first. The U.S. Small Business Administration notes that businesses with employees must carry workers' compensation, unemployment, and disability insurance. Framing is a high-risk class, so get quotes early and price that cost into your rate. See insurance requirements for subcontractors.
- Write a fall protection program. OSHA requires fall protection for workers doing residential construction 6 feet or more above a lower level, using guardrails, safety nets, or personal fall arrest. If you can show those are infeasible or create a greater hazard, you need a written site-specific fall protection plan instead. Train every framer before they climb.
- Get bonded if your market needs it. Most residential framing is unbonded, but commercial and public work may require performance bonds and payment bonds. The U.S. Small Business Administration's Surety Bond Guarantee program backs bonds for small contractors on eligible contracts up to $9 million for non-federal work.
- Build the crew and kit. A lead framer, a few carpenters, and helpers, with framing nailers, compressors, saws, lasers, ladders, and fall protection gear.
- Set prices, then sell to builders. See the pricing section below.
Startup cost categories
There is no honest single startup number. A labor-only framer with one crew and their own tools starts much lighter than a furnish-and-install company carrying lumber on credit. Budget by category and get real quotes.
| Category | What it covers | Notes |
|---|---|---|
| Registration and licensing | Entity filing, DBA, state or local license | Set by your state and city |
| Insurance | General liability, workers' comp, commercial auto | Workers' comp is a major cost in framing |
| Fall protection and safety | Harnesses, anchors, guardrail systems, ladders, training | Required before work at height |
| Tools | Nailers, compressors, saws, lasers, cords, jacks | Replace often, budget for wear |
| Trucks and trailers | Crew truck, tool trailer | Secure storage reduces theft |
| Working capital | Payroll for weeks before the first draw clears | Builder pay terms decide how much |
| Lumber credit (if furnishing) | Supplier account and price escalation risk | Skip if starting labor-only |
| Software | Scheduling, photos, change orders, invoicing | Monthly costs, see framing software |
Pricing your first jobs
Builders usually buy framing per square foot of floor area, with adders for complex roofs, tall walls, stairs, and decks. Build that number from crew hours per square foot on similar houses, your burdened labor cost, overhead, and profit. As a wage reference, the Bureau of Labor Statistics reported a median of $29.12 per hour for carpenters in May 2025; your burdened cost will be higher once payroll taxes and workers' comp are added. Walk through the math in how to price framing jobs, and see how to price work as a subcontractor.
Ask every builder about payment terms before you agree to a price. A rate that looks good can turn bad if the draw is paid 45 days after the walk and part of it is held as retainage until the house closes. Know the terms, then decide whether the job fits your cash. See construction payment terms contractors should negotiate.
Finding the first builders
- Lumberyards and truss plants. They know which builders are busy and which framers are falling behind.
- Production builders' purchasing staff. Ask how they qualify trades and get on the list with insurance certificates and references ready. See how to get prequalified with general contractors.
- Custom builders and remodelers. Smaller volume, but often better pay and fewer back-charges.
- Other framers. Overbooked framers sub out houses. Do one well and you get the next one.
- Superintendents. Supers move between builders. A super who trusts your crew will bring you along.
Systems to set up in month one
Set up a simple job list by builder and house, a draw schedule per builder, a change order form for every extra, milestone photos, crew time by job, and basic job costing per square foot. Smart Business Automator handles project tracking, invoicing, change orders, and job costing for framing subs, and the framing software guide covers what else to compare.
Mistakes new framing companies make
- Underpricing to win a builder and then being stuck at that rate.
- Doing extras on a verbal okay from the super and never getting paid for them.
- Skipping fall protection because the crew is experienced.
- Taking furnish-and-install work without a lumber price escalation clause. See how to handle material price escalation in bids.
- Not photographing finished framing before other trades arrive, then losing back-charge disputes.
- Depending on one builder for most of the work.
- Paying crews before knowing when the builder's draw will clear.
Frequently asked questions
Do I need a license to start a framing business?
It depends on your state and city. Framing may fall under a general contractor, residential builder, or specialty license, or local registration. Check your state licensing agency before bidding.
Should a new framer do labor-only or supply materials?
Labor-only needs less cash and avoids lumber price risk, which is why many framers start that way. Furnish-and-install can pay more but needs supplier credit and escalation clauses.
What insurance do framing contractors need?
General liability and workers' compensation are the main policies builders check, plus commercial auto. Builders often require a certificate naming them as additional insured.
What fall protection rules apply to framers?
OSHA requires fall protection for residential construction work 6 feet or more above a lower level, through guardrails, safety nets, or personal fall arrest, or a written fall protection plan when those are infeasible.
Sources
- U.S. Small Business Administration: Write your business plan
- U.S. Small Business Administration: Register your business
- U.S. Small Business Administration: Get business insurance
- U.S. Small Business Administration: Surety bonds
- IRS: Get an employer identification number
- 29 CFR 1926.501, Duty to have fall protection (Cornell LII)
- Bureau of Labor Statistics: Carpenters, Occupational Outlook Handbook
