How to start a plumbing business in Texas: the master plumber rule, insurance and paperwork

Most states license the person. Texas licenses the person and then ties the company to one specific master plumber, with insurance, vehicle lettering and invoice wording attached. This page covers the parts that change in Texas. Begin with the general guide to starting a plumbing business, then Texas contractor licenses and the Texas starting guide for the state's other trades and taxes.

One board licenses plumbing, and the company needs a master

The Texas State Board of Plumbing Examiners (TSBPE) enforces Chapter 1301 of the Occupations Code. Under section 1301.351, a person other than a responsible master plumber may not engage in plumbing unless they hold the proper license, registration or endorsement and their work is supervised and controlled by a licensed person. The same section says a person who advertises or otherwise offers to perform plumbing must secure the services of a responsible master plumber. Holders must also carry the license or registration on their person while working.

The practical meaning for an owner who is not a plumber: you can own the company, but you cannot sell a plumbing job until a master plumber is attached to it. If you are the plumber, you become the responsible master plumber yourself.

The ladder from apprentice to master

The board's license pages set out the steps. Dollar figures below are as listed on the board's pages in October 2026.

Licenses renew annually and the board requires six hours of continuing professional education to renew. A master plumber can supervise apprentices and Tradesman Plumber-Limited licensees, with limits on one- and two-family dwellings. Endorsements are available for medical gas, multipurpose residential fire sprinklers and water supply protection. If you are earlier in the path, our guide on how to become a licensed plumber covers it in general terms. Texas hours and fees apply only to Texas.

The responsible master plumber carries the company

The board's RMP page lists the duties. The RMP is responsible for the general supervision and management of the plumbing work under the company's contracts, whether the workers are employees or subcontractors. That includes obtaining every permit and requesting every inspection, making sure everyone doing plumbing holds a current license or registration, and making sure a licensee is on site at every job where registrants are working. An RMP can act as the RMP of record for only one company at a time, and a person who holds a plumbing inspector license cannot receive the designation.

Insurance is part of the job. The RMP must hold commercial general liability coverage of at least $300,000. Section 1301.552 says the certificate must come from an authorized or eligible surplus lines insurer and cover property damage or bodily injury claims of at least $300,000 for all claims in a one-year period. Cities that require plumbing permits are directed to check the board's record of insurance before issuing them, so a lapsed policy can stall your permits. Our guide to general liability insurance explains the product itself.

The license shows up on trucks, ads and invoices

Board rule 22 TAC 367.10 is specific, and it reaches your website.

• Vehicles. The RMP's license number and the company name go on both sides of every service vehicle. The number is preceded by M, MPL or RMP, in a contrasting color, at least two inches tall.
• Proposals, invoices and contracts. The first page must show, in at least twelve-point type, the RMP's first and last name and license number, the phrase "regulated by the Texas State Board of Plumbing Examiners," and the board's address, phone number and website. The rule covers estimates, receipts and billing documents too.
• Advertisements. Ads designed to solicit plumbing business must state the RMP's license number, in any media. The rule exempts signs at your permanent business location, nominal promotional items such as hats and shirts, third-party directory listings you do not control, and certain audio-only ads that offer the number on request.

The first-page wording is easy to overlook because it is not part of a standard invoice layout. Put it in the header of your estimate and invoice templates, and in the footer of your site. If you are choosing software, check that its templates let you add fixed text before you pay. Our comparison of plumbing software is a place to start. Rule 367.9 separately bars a company from advertising, contracting for or offering plumbing work unless it has secured an RMP with a current master license. The RMP can be an employee, or the owner of the company.

Sales tax: labor on homes is not taxed, materials depend on the contract

The Comptroller's Publication 94-116, Real Property Repair and Remodeling, says labor to repair, remodel or restore residential real property is not taxable. How you bill decides the materials. On a lump-sum contract at one price, you pay tax on your supplies, materials and equipment when you buy them and charge the customer no tax. On a separated contract, where materials and labor are billed apart, you can give your supplier a resale certificate, then collect state and local sales tax from the customer on the materials. The labor charge stays untaxed.

Nonresidential work is different. Per the Comptroller's guidance summarized in our Texas starting guide, repair, remodeling and restoration of nonresidential buildings is taxable. A shop that does both residential service and commercial tenant work needs two invoice setups. For the general idea, see sales tax on services.

Workers' comp is optional, with strings

The Texas Department of Insurance says most private employers may choose whether to carry workers' compensation. An employer that does not is a nonsubscriber, and must file a notice of no coverage with the Division of Workers' Compensation, post notices in English and Spanish, and give written notice to each new hire. The exception for contractors is Texas Labor Code section 406.096: a governmental entity that signs a building or construction contract must require the contractor to certify that it covers every employee on the project. If you plan to bid school, city or county work, you need a policy.

What to do first

1. Decide who your responsible master plumber is. If it is not you, sign the arrangement in writing, since the RMP can serve only one company.
2. Get the $300,000 certificate of insurance in place and send it to the board.
3. Add the RMP name, license number and board wording to your estimate, invoice and contract templates.
4. Letter the trucks with the company name and the RMP's number once the designation is final.
5. Choose lump-sum or separated contracts for residential work and write that into your price book. Our guide to pricing plumbing service jobs helps with the numbers.
6. Put the license number on your site and Business Profile.

This page is background, not legal or tax advice. Fees and rules change, so check with the board, the Comptroller and your city's permit office. Cities set their own permit rules on top of the state license.

Frequently asked questions