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ou can start a business as an electrician in the residential sector with a low start-up cost. You don’t need a large amount of upfront capital, but it’s essential to create a solid business plan and financial goals. According to Ron Douglas, an important step in starting a business is setting specific goals and establishing a blueprint to reach them. As a starting point, he recommends that new businesses set a six-month goal and then break it down into monthly action steps.

Before starting an electrical business, you must choose a name and register with the IRS. Choose a name with an available domain name, so that you can easily set up a website for your business. The next step is to incorporate your business. If you’re going to form an LLC, you’ll need an employer identification number (EIN). If you’re a sole proprietor, you can use your Social Security Number (SSN) instead of registering for an EIN. However, you may not want to disclose your SSN to customers.