How do I Start a Welding Business?

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  • Written By: Erin Oxendine
  • Edited By: Bronwyn Harris
  • Last Modified Date: 02 November 2019
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A welder is a trained professional who welds materials together to either create a lasting bond or repair cracks. Some individuals in this profession choose to work for construction or metal finishing companies. Many prefer to work as independent contractors and start their own welding business. Starting a welding business takes time, money, and initiative to be successful but can be very lucrative if welders understand what it takes to operate their own business.

The first step in order to open a welding business is to take a welding class, pass the exam and apply for a welding license. Welders can get formal training from a technical institute or in a high school welding class. Most states that issue welding licenses require the applicant to pass a written and practical exam to demonstrate knowledge and skill. Upon passing the exam, the state board issues a certified welder´s license to the individual.

While laws and regulations may differ in each location, most jurisdictions and states mandate that new business owners apply for a business permit. The applicant has to get the permit and file it with the city clerk. In addition to the permit, welding companies have to comply with state and federal ordinances and codes to operate as a welding business. Welders also have to adhere to strict regulations in connection with Occupational Safety and Health Guidelines (OSHA) for welders.


Another important factor a welder would need before starting up a new welding business is insurance. This includes health insurance, worker’s compensation insurance and liability insurance. The business should also include fire protection coverage since welding equipment and products are flammable.

Once the licensing and permits are completed, welders have to come up with a welding business plan and marketing strategy. The welder has to consider what his goals are as well as costs and overhead for running a business. The marketing plan involves figuring out to get clients as well as ways to increase revenue. Companies really need to have an excellent business plan written out that includes projected monthly and yearly earnings. If the welder has to take out a loan from a bank for start up materials and equipment, the bank may want to see a projected business plan that will show estimated earnings.

Other considerations for a welding business include obtaining welding materials and equipment, safety gear, and of course a welding facility. Some welders operate a mobile welding business while others have customers come to their welding shop. Whether a mobile business or shop, the owner would also need signs advertising the business name, number and hours of operation.


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