Tax and bookkeeping guides for electricians, plumbers, HVAC, painters, flooring, fencing, welding, handyman, locksmith, and other skilled trades: entity choice, vehicles and tools, worker classification, and estimated taxes.
93 guides, each written by a CPA licensed in the US and Canada.
Appliance repair businesses are NOT SSTBs and qualify for the full QBI deduction. The S-Corp election saves $3,000-$7,000/year at $90,000+ net profit.
US TaxAppliance repair businesses deduct diagnostic tools ($500-$3,000), replacement parts inventory. Major deductions for appliance repair businesses: Tools.
US TaxAppliance repair is one of the least seasonal trades (appliances break year-round). Monthly revenue variance is typically 85-115% of average.
US TaxAppliance repair parts are 15-30% of revenue and fully deductible (either as COGS or supplies).
US TaxA sole proprietorship (Schedule C) requires no separate filing and is the default for a one-person trades business. An LLC.
US TaxJob costing tracks materials, labor, and overhead against each job's revenue so a trades business knows which jobs actually make money.
US TaxCabinet installers deduct CNC routers ($30,000-$80,000), table saws, edge banders, and specialized measuring tools. Major deduction categories for cabinet.
US TaxCabinet businesses have moderate seasonality tied to home renovation cycles. Spring and fall are peak seasons. Set aside 22-25% of net profit.
US TaxCabinet installation (and custom cabinetry) businesses are NOT SSTBs. Materials dominate (40-60% of revenue for custom, higher for pre-fab).
US TaxChimney sweeps deduct rotary cleaning systems, inspection cameras, chimney caps and liners (for resale), van outfitting costs, and marketing expenses.
US TaxChimney sweeps earn 60-70% of revenue September through January (heating season). Estimated tax planning for chimney sweep businesses: - Set-aside rate.
US TaxChimney sweep and chimney repair businesses are NOT SSTBs. Low materials cost (5-15% of revenue) means high net profit margins.
US TaxCountertop fabricators deduct CNC routers ($50,000-$200,000), bridge saws ($20,000-$80,000), edge polishers, and stone inventory (granite, quartz.
US TaxCountertop fabricators follow the kitchen remodel cycle with spring and fall peaks. Estimated tax planning for countertop fabricators: - During NOL years.
US TaxCountertop fabrication (granite, quartz, marble) businesses are NOT SSTBs. Materials run 35-45% of revenue. Countertop fabrication S-Corp analysis:.
US TaxElectrical contracting businesses are NOT SSTBs, so the full QBI deduction applies at all income levels. Material costs are moderate (15-25% of revenue).
US TaxElectrician business tax structure: - SSTB status: NOT an SSTB. Electrical work is a skilled trade involving physical labor.
US TaxElectricians can deduct hand tools, power tools, diagnostic equipment, work vehicle costs, licensing fees, continuing education, safety gear.
US TaxElectrical contractors have mild seasonality (1.5-2x peak-to-trough) because electrical work spans all seasons. Electrical contractor seasonal pattern: |.
US TaxElectrician deductions center on the service van ($30,000-$50,000, Section 179 eligible), test equipment and power tools ($2,000-$5,000).
US TaxAppliance repair businesses have stable year-round demand (appliances break in every season). Set aside 25-30% of net profit quarterly.
US TaxElectricians must make quarterly estimated tax payments on self-employment income. Estimated tax approach by electrician business type: Residential.
US TaxFlooring installers must make quarterly estimated tax payments on self-employment income. Estimated tax approach by business model: Labor-only flooring.
US TaxHandyman businesses must make quarterly estimated tax payments if they expect to owe $1,000 or more. Estimated tax basics for handyman businesses.
US TaxHVAC businesses face dual-peak seasonality (summer cooling, winter heating) that complicates estimated tax payments. Typical HVAC revenue distribution:.
US TaxPainting contractors face moderate seasonality (exterior work peaks April-October) and must plan quarterly estimated payments around weather-dependent.
US TaxSelf-employed welders owe quarterly estimated taxes on net income.
US TaxPlumbing and HVAC businesses have seasonal revenue patterns (HVAC peaks in summer and winter, plumbing is steadier). The safe harbor rules require.
US TaxSelf-employed tradespeople owing $1,000 or more in tax must pay quarterly estimates covering income tax and 15.3% self-employment tax.
US TaxFence installation is moderately seasonal (spring and fall peaks, winter slowdown in northern states). Estimated tax overview for fence installers:.
US TaxFence businesses deduct wood, vinyl, chain-link, and metal materials at 40-50% of revenue. Major deductions for fence installation businesses: Materials.
US TaxFence installation is NOT an SSTB under IRC 199A. Materials represent 40-50% of revenue, lowering the effective net margin.
US TaxFlooring installer tax structure: - SSTB status: NOT an SSTB. Flooring installation is physical construction/trade work.
US TaxFlooring installers can deduct tools (knee kickers, carpet stretchers, tile saws), vehicle expenses, materials (if included in pricing).
US TaxGarage door repair businesses have steady year-round demand (emergency spring breaks don't follow seasons). Estimated tax payments are straightforward.
US TaxGarage door businesses deduct torsion springs, openers, panels, and hardware as supplies. Service vehicles ($30,000-$50,000) qualify for Section 179.
US TaxGarage door repair tax structure: SSTB status: NOT an SSTB. Garage door repair and installation is a skilled trade. Garage.
US TaxGlass and glazing companies deduct glass cutting tables, edging machines, glass inventory (35-45% of revenue), service vehicles with glass racks.
US TaxGlass and glazing businesses have moderate seasonality with commercial work providing year-round stability. Set aside 22-25% of net profit.
US TaxGlass and glazing businesses (window replacement, commercial storefront, auto glass) are NOT SSTBs. Materials run 35-45% of revenue.
US TaxGutter work peaks in spring and fall (before and after winter). Revenue is moderately seasonal. Estimated tax overview for gutter installers: Typical.
US TaxThe seamless gutter machine ($10,000-$30,000) is the defining capital expense. Major deductions for gutter installation businesses: The gutter machine.
US TaxGutter installation is NOT an SSTB under IRC 199A. Materials (aluminum coil, hangers, downspouts) run 25-35% of revenue.
US TaxHandyman businesses (NOT SSTBs) qualify for the full 20% QBI deduction. Handyman business tax structure: - SSTB status: NOT an SSTB.
US TaxHandyman work is NOT a specified service trade or business (SSTB). S-Corp election makes sense at $55,000-$65,000 in net profit.
US TaxHandyman work is one of the least seasonal trades (year-round demand for repairs). Equal quarterly payments work well for most operators.
US TaxHandyman businesses have 60-75% margins with very low material costs (materials usually passed through to the customer).
US TaxHandyman businesses can deduct tools, vehicle expenses, materials, licensing fees, insurance, and marketing costs.
US TaxApprentices and helpers who work under a trade business's direction and equipment are almost always W-2 employees, not 1099 contractors.
US TaxHVAC contractor tax structure: - SSTB status: NOT an SSTB. HVAC work is mechanical trade work. Full QBI deduction applies. - Revenue streams.
US TaxHVAC businesses are NOT SSTBs, so the full QBI deduction applies at all income levels. Equipment costs are moderate (van and tools $30,000-$60,000).
US TaxHVAC has dual-peak seasonality (summer AC demand + winter heating demand) creating a unique W-shaped revenue pattern. HVAC seasonal revenue pattern: |.
US TaxHVAC installers can deduct equipment (recovery machines, gauges, vacuum pumps), work vehicles (Section 179), refrigerant costs, EPA 608 certification.
US TaxHVAC deductions center on the service van ($30,000-$55,000, Section 179 eligible), diagnostic tools and equipment, parts inventory.
US TaxIrrigation businesses deduct trenchers ($5,000-$30,000), pipe pullers, backflow test kits, PVC/poly pipe inventory, sprinkler heads, and service vehicles.
US TaxIrrigation businesses are highly seasonal in cold climates (April-November) with distinct spring startup and fall winterization rushes.
US TaxIrrigation and sprinkler businesses (installation, repair, winterization) are NOT SSTBs. Materials run 25-35% of revenue. Workers' comp is low (3-6%).
US TaxLicense fees, renewal fees, and required continuing education to maintain a trade license are fully deductible. Surety bond.
US TaxLocksmith businesses should set aside 25-30% of net profit for quarterly estimated taxes. Emergency lockout calls (often cash) are fully taxable.
US TaxLocksmith businesses have mild seasonality (1.5-2x ratio) but unpredictable emergency revenue spikes.
US TaxLocksmith businesses can deduct key cutting machines, key blank inventory, mobile service vehicle costs, lock hardware, insurance, and licensing fees.
US TaxLocksmith businesses are NOT SSTBs, qualifying for the full 20% QBI deduction. The mobile service model creates significant vehicle deductions.
US TaxMobile locksmiths must make quarterly estimated tax payments. Revenue is relatively steady year-round (unlike seasonal trades).
US TaxLocksmith tools and equipment ($15,000-$50,000 startup) qualify for bonus depreciation. Vehicle expenses are the largest recurring deduction.
US TaxWorking a job in another state can create income tax nexus, a separate licensing requirement, and a non-resident return.
US TaxPaint and materials run 20-35% of job revenue. Vehicle expenses, subcontractor payments (1099-NEC), and equipment (sprayers $500-$5,000.
US TaxPainting contractor tax structure: - SSTB status: NOT an SSTB. Painting is a physical trade. Not consulting, not a professional service.
US TaxPainting contractors face 3-4x seasonality (exterior work peaks in warm months). Painting contractor seasonal income pattern: Exterior-only painter: |.
US TaxPainting is highly seasonal in northern markets (exterior work concentrated April-October). Interior work smooths revenue somewhat.
US TaxPainting contractors deduct paint/materials (25-40% of revenue, the largest cost), vehicle expenses, sprayer equipment ($2,000-$8,000).
US TaxPainting contractors can deduct paint and supplies (typically 15-25% of job revenue), sprayers and equipment (Section 179), work vehicle costs, insurance.
US TaxPlumbing has mild overall seasonality (1.5-2x ratio) but unpredictable emergency revenue spikes from frozen pipes, sewer backups.
US TaxPlumber deductions center on the service van ($30,000-$50,000, Section 179 eligible), specialty tools (sewer camera $5,000-$15,000.
US TaxPlumbing and HVAC businesses are not SSTBs, so the QBI deduction is available at all income levels. The LLC with S-Corp election is the standard entity.
US TaxPlumbing and HVAC businesses have significant equipment and vehicle costs. Section 179 allows a business to deduct the full purchase price of qualifying.
US TaxPlumbing and HVAC businesses need general liability, workers' comp, commercial auto, and often a contractor's bond.
US TaxPlumbing and HVAC businesses must correctly classify apprentices, journeymen, and subcontractors. Apprentices are almost always W-2 employees.
US TaxPlumbing businesses are NOT SSTBs, so the full QBI deduction applies at all income levels. Material costs are moderate (15-25% of service revenue).
US TaxPlumbing and HVAC owners can shelter significant income through retirement plans. A solo plumber or HVAC technician (no employees other than a spouse).
US TaxA SEP IRA or Solo 401(k) can shelter up to $72,000 of self-employment income in 2026. A SEP IRA allows a contribution of up to 25% of net self-employment.
US TaxTrades businesses can fully expense service trucks, diagnostic equipment.
US TaxSeptic service companies deduct vacuum trucks ($80,000-$200,000), jetter equipment, inspection cameras, pumping hoses, and disposal fees.
US TaxSeptic service businesses have moderate seasonality (spring through fall pumping, year-round emergencies). Set aside 22-25% of net profit.
US TaxSeptic pumping and installation businesses are NOT SSTBs. The vacuum truck ($80,000-$200,000) is the defining asset. Workers' comp is moderate (5-8%).
US TaxSelf-employed tradespeople can deduct tools, vehicle costs, licensing, continuing education, and uniforms under IRC 162.
US TaxWelding businesses are NOT SSTBs and qualify for the full QBI deduction. The S-Corp election saves $4,000-$8,000/year at $100,000+ net profit.
US TaxWelding businesses have moderate seasonality, with construction-linked work peaking spring through fall and shop fabrication steady year-round.
US TaxWelding businesses can deduct welding machines ($2,000-$15,000, Section 179), consumables (wire, rod, gas), the welding rig truck, safety gear.
US TaxWelding businesses have substantial equipment costs ($5,000-$50,000 for machines. Welding business deductions by category: Major equipment (Section 179 /.
US TaxWelding business tax profile: SSTB status: NOT an SSTB. Welding is a skilled trade, not a professional service.
US TaxTradespeople choose between the standard mileage rate and actual expenses in the first year a vehicle is placed in service.
US TaxElectrical helpers and journeymen working under a master electrician's license are almost always employees, not independent contractors.
US TaxPainting crew members are employees under IRS tests when the contractor controls the job site, provides equipment, and sets schedules.