Starting your own electrical contracting business is one of the best financial decisions you can make as a licensed electrician, and it’s not as complicated as it looks from the outside. The fear that stops most guys is the business side - licensing, insurance, accounting, finding customers. None of it is harder than learning to do a proper load calculation. Here’s the sequence: get your contractor’s license, get your business entity set up (LLC in most cases), get your general liability insurance and workers’ comp, open a business checking account, and then focus on getting your first customers.
Contractor licensing: every state is different. California uses C-10 electrical contractor license administered by CSLB. Texas uses TECL. Most require passing an exam, showing proof of experience, and maintaining insurance. The exams are based on the NEC plus a business/law component. There are prep courses and study guides - don’t try to wing it.
Insurance: general liability is the minimum ($1M per occurrence, $2M aggregate is a common baseline). Workers’ comp is required if you have employees. Contractor’s equipment insurance for your tools and trailer. Budget $4,000-8,000/year for liability and WC on a small operation.