Is there an AI that can help run my US plumbing business?

Do I need a plumbing license, and does it vary by state?

Yes, and it varies by state and often by city. The license holder of record signs for the permits and the work.

In Texas, plumbing, including gas piping inside buildings, is licensed by the Texas State Board of Plumbing Examiners; a company works under a responsible master plumber, and a helper must be at least a registered apprentice under direct supervision (Tex. Occ. Code ch. 1301). California's CSLB licenses the business (C-36) through a qualifier, with a $25,000 bond, and the minor work exemption needs, among other conditions, a total price under $1,000 and no permit (Cal. Bus. and Prof. Code secs. 7048 and 7071.6) (As of Oct 2026). In Florida, unlicensed contracting is a crime and you lose the right to enforce the contract or a lien (Fla. Stat. secs. 489.127(2), 489.128 and 713.02(7)). New York has no statewide license; New York City licenses Master Plumbers. See the Academy lesson on licenses and permits.

Who pulls the permit, and when?

The license holder pulls any required permit before work starts, and the inspector signs the final. Never pull a permit for work someone else did: the permit holder answers for it.

Ask the city or county whether a water heater swap, repipe or gas line needs one. In New York City, Local Law 152 requires gas piping in most buildings, other than one- and two-family and other R-3 buildings, to be inspected every 4 years; community districts 4, 6, 8, 9 and 16 are due by December 31, 2026 (As of Oct 2026).

How should I set flat-rate prices and a trip charge?

Build the hourly rate inside your price book from the hours your techs actually sell.

Break-even is the burdened wage divided by efficiency, plus overhead per billable hour; a task price is hours times that rate plus marked-up materials. In an indicative example, six techs at $32 an hour with a 30% burden, 2,080 paid hours each, 60% efficiency and $780,000 of overhead break even at $173.50, so a 20% net margin needs about $217 an hour. State the trip charge before dispatch. See the Academy lesson on flat-rate pricing and how to price a quote.

Can I sell memberships?

Yes. Visits, priority dispatch and discounts are service agreements, but a fixed-fee promise to repair a failed system may be a regulated service contract or home warranty.

In Texas, residential service contract providers register with TDLR (Tex. Occ. Code ch. 1304). For auto-renewing plans sold online, federal ROSCA requires clear terms, express consent and a simple way to stop the charges (15 U.S.C. sec. 8403).

How much can I take up front, and when can a homeowner cancel?

Home sales of $25 or more usually carry 3 business days to cancel under the FTC Cooling-Off Rule (16 C.F.R. part 429) (As of Oct 2026), and several states control deposits. Extras sold on a repair visit you were called out for are not exempt (sec. 429.0(a)(5)).

In California the down payment may not exceed $1,000 or 10% of the price, whichever is less, and buyers aged 65 or older get 5 business days to cancel (Cal. Bus. and Prof. Code sec. 7159.5; Cal. Civ. Code sec. 1689.6) (As of Oct 2026).

How do I collect on an unpaid job, and what are my lien rights?

Send a written demand, then use small claims or a mechanics lien. A missed lien notice or late filing usually loses the lien for good.

Small claims limits are $20,000 in a Texas justice court, $12,500 for individuals in California, $8,000 in Florida and $10,000 in New York City (As of Oct 2026). In California, record a lien within 90 days after completion if no notice of completion is recorded (Cal. Civ. Code sec. 8412). A Texas lien on a homestead needs a written contract signed by both spouses before work starts and filed with the county clerk (Tex. Prop. Code sec. 53.254). See how to chase an unpaid invoice and the Academy lesson on cash flow.

What prompt payment rules protect me as a sub?

State law sets how fast money flows down, and whether pay-if-paid binds.

In Texas, a contractor pays its sub within 7 days of receiving the owner's payment, with interest at 1.5% a month on late sums (Tex. Prop. Code secs. 28.002 and 28.004); in California a prime pays subs within 7 days of each progress payment unless agreed otherwise in writing, or owes a 2% a month penalty (Cal. Bus. and Prof. Code sec. 7108.5) (As of Oct 2026). Pay-if-paid is unenforceable in California (Wm. R. Clarke Corp. v. Safeco Ins. Co. (1997) 15 Cal.4th 882) and New York (West-Fair Elec. Contrs. v. Aetna (1995) 87 N.Y.2d 148).

Do I charge sales tax on plumbing work?

It depends on the state and on whether the job repairs or improves real property.

In Texas, labor to repair a home is not taxable but repair of nonresidential property is, at 6.25% state tax plus up to 2% local (34 Tex. Admin. Code sec. 3.357) (As of Oct 2026). In New York, repairing real property is taxable and a capital improvement is not, so keep the customer's Form ST-124 (N.Y. Tax Law sec. 1105(c)(5)). The 25C and 25D federal credits ended for property placed in service after December 31, 2025. See the Academy lesson on sales tax.

What do I owe on workers' comp and overtime?

Flat-rate pay does not switch off wage and hour law, and a supervised helper paid on a 1099 is a classification risk.

Non-exempt techs get time and a half over 40 hours a week, with commission in the regular rate, and travel between jobs during the day is work time (Fair Labor Standards Act; 29 C.F.R. sec. 785.38). Texas lets private employers opt out of workers' comp at the cost of their common-law defenses, and California will require it of CSLB licensees from January 1, 2028, subject to any exemption the board sets (Cal. Bus. and Prof. Code sec. 7125) (As of Oct 2026). See the Academy lesson on pay and helpers.

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