How to Get a Welding Business License

Maybe you’ve been welding for as long as you could hold a torch, or perhaps you picked up the trade recently. With a welding business license, you can branch out. Whatever your background, shaping metal through welding is a craft as old as recorded time and is as vital as ever to today’s world. As a result, there is a massive demand for welding businesses to fill today’s supply chain gaps.

Before you can put your passion and skills into practice, however, you must obtain a license. So what kind of licenses and documents do you need to start a career as a self-employed welder? This guide answers that question to get you started.

Essential Licenses for Professional Welders

You have the skills to do almost any welding job but need official documentation to show you’re a trained professional. The key to all of this is a state license. To get that, you need to prove you have specific credentials.

What’s Involved With Getting a Welding License?

You know how to weld, but most states require certification. Usually, this means taking an exam through the American Welding Society, but other welding certification programs exist. In addition, the organization must hold accreditation in the state where you want to practice.

Licensing exams have two parts:

1. A written exam where you’ll have to answer multiple-choice and short-form questions
2. A practical application test where you’ll have to demonstrate your knowledge of various welding processes in action

Passing both of these sections leads you to the application process. First, fill out the forms to apply for your Certified Welder Certificate, then take that information to the state licensing board.

If that’s all they require, you’re done!

Other Licenses and Certificates to Consider – Welding Business License

While going through the certification process, you might see that your state has additional licensing requirements on top of the AWS. It depends on what type of welding career you plan to pursue. Every job deals with different metal thicknesses and welding styles, so you may need to demonstrate additional skills. General welding jobs don’t require extra certifications. Specialist jobs usually do.

Specialized Welding Certifications

Specialization can lead to higher income. In addition, offering a niche service allows you to corner that market in your region.

Here are some in-demand certifications to look into:

Welding Inspector

With enough experience and a few educational courses under your belt, you can work as an inspector. It involves less “hands-on” work and more supervision, making it a good goal for those seeking a less labor-intensive job.

Robotic Arc Welding

Welding a consumable metal to a base metal using electric currents isn’t easy. It takes extra training and a special certification to do it legally. Robotic arc welding services offer you a lucrative construction, transportation, or industrial equipment manufacturing career.

Welding Contractor/Fabricator

A welding contractor license allows you to start a mobile welding business. You’ll work as an independent contractor alongside electricians and other professionals on construction and renovation jobs. You can acquire each of these specializations through welding school or on-the-job training. You already have the knowledge and your welding equipment; certifications give you a professional designation that opens up more job opportunities.

What to Expect in the Licensing Process

The hard part is behind you: building skills, taking courses, and passing the exam. The next part involves finding the requirements for opening a city/state/federal welding business.

Opportunities vary depending on your location and the type of welding you’re involved in, but there are some general processes for every new business owner:

Register Your Business Name

Register your business as soon as you know you’ll open a welding shop (whether it’s mobile or in one spot). Come up with a DBA (doing business as) name, and make sure it’s available. Pick something that reflects who you are and what your business represents. It should let clients know that you offer welding services.

Register Your Business Structure

When you have your DBA, visit the IRS website to register as a business structure. Most freelancers register as a sole proprietorship (no partner) or limited liability corporation (potential partners in the future) option. Both are beneficial options, as they give you access to tax deductions. An LLC separates your personal and business accounts from legal liability if you are sued or have money troubles.

Getting an EIN and Your Business and Sales Tax License

You must also apply for an EIN or employer identification number.

After you choose a business structure, use it to fill out the quick form on the IRS website. You’ll receive a number (your EIN) that designates you as an official business.

You can legally use your social security number if you don’t plan on hiring staff, but you’ll need an EIN if you ever decide to grow your team.

You’ll need an EIN to get your business and sales tax license. It also serves as proof of your official business entity name.

Check with your state to learn what types of licenses you’ll need. Most require a sales tax and business license before you can start working and collecting payment for your services.

Related: How to Set Payment Terms as a Freelancer

Meeting OSHA Regulations

If you haven’t dealt with OSHA in the past, grab your notebook, print out the welding standards, and get ready for some light bedtime reading.

OSHA’s standards for welders will be the core of your business model’s framework. Short for “Occupational Safety and Health Administration,” OSHA is a government branch that ensures every business practices proper safety protocols.

OSHA’s regulations are designed to reduce accidents and injuries. They monitor welding businesses extra carefully, as it’s known to be a dangerous job. Following their policies creates a safer environment for you, your clients, subcontractors, or employees.

Protecting Yourself With Insurance

Accidents happen, even if you follow OSHA’s guidelines. You may need insurance at some point in your welding career.

When it comes to the damage that can happen on a welding site, it’s a case of “better safe than sorry.” A lot of expensive damage can occur. You don’t want to get stuck paying for those costs yourself.

With that said, every freelance welder should invest in a few essential insurance policies:

Workers’ Compensation

Most welders carry workers’ compensation insurance. It’s not mandated for freelancers, but you will appreciate the coverage if you ever have an accident.

General Liability

Liability insurance is crucial for welders. Your job involves handling other people’s property and being responsible for any damage.

General liability protects you from this financial blow in multiple ways.

Most policies include coverage for the following:

Bodily Injury

Bodily injury coverage is necessary if a customer is injured on your premises or with your tools.

Even if they walk before your torch and are burned with a side spark, they could hold you liable for their injury. This type of business insurance covers their hospital and medical expenses.

Property Damage

Your clients might require proof of property damage coverage if you’re an independent contractor. This protection pays for repairs or replacements if you cause damage to a customer’s property.

Property damage insurance is essential whether you work on-site or in a fabrication shop.

Product Liability

You always do the best job possible, but everyone makes mistakes. Product liability or completed operations coverage kicks in if a mistake leads to a customer injury.

Personal and Advertising Injuries

This coverage protects you if you’re sued for slander, libel, or wrongful use of intellectual property.

Professional Liability

Your clients trust you. They take your opinion seriously and trust you to provide a good service.

However, there may come a time when a customer is unhappy with the final product. They could claim that your service or advice caused financial harm to their business.

Professional liability coverage protects you (and your bank account) against these claims.

Health Insurance

Health insurance is another crucial type of coverage.

As a self-employed business owner, you aren’t paid if you’re hurt or sick. Unfortunately, an injury or illness that keeps you off your feet for a while can cost you, and your clients, too.

Your job is hazardous.

OSHA has a long list of welding-related dangers:

• Exposure to metal fumes
• Ultraviolet radiation
• Burns
• Shocks
• Cuts
• Damage to eyes
• Crushed extremities

You love the work and are willing to take your chances. Still, preparing for the worst and hoping for the best is a wise business practice.

Health insurance covers many medical costs if you are injured at work.

Unfortunately, finding a plan outside an employer-sponsored insurance policy can be expensive. Luckily, Selfgood is a benefit program for gig workers like you.

Selfgood’s Limited Benefit Fixed Indemnity Insurance plans we cover various healthcare needs, from hospital stays and wellness visits to Teladoc appointments.

Aetna’s First Health provider network offers the plans. They give self-employed business owners access to discounted rates at a massive network of facilities.

As a welder, you can’t afford to skip insurance. Self-good makes it easier on your wallet.

Resources to Bookmark in Your Welding Journey

Soon, all the tough stuff will be behind you, and it will be time to move forward on your wedding journey.

Along the way, you may need resources to overcome a few challenges.

Bookmark these essentials in case you want to come back to them later:

Passing the Test

Do some studying before you take your welding licensing exam. The Welding Licensing Exam study guide is available new, used, and for Kindle on Amazon. It’s a small investment to pay if it keeps you from having to take the exam more than once.

Getting Startup Funding

When you’re ready to roll out your business but need a little extra cash for equipment, the Small Business Administration can help. Their free resources teach you how to create a business plan and find grants and low-interest loans.

Finding Affordable Legal and Insurance Help

Selfgood can help you learn business legalese, design contracts, and find affordable health insurance. Use your Selfgood membership to get discounted rates on services and products with hundreds of companies.

Your welding career is just beginning; these resources provide the jumpstart you need to get on your feet.

Sign up for Selfgood’s freelancer benefits today!

Conclusion

Most people can’t weld. A business license is your next step, but if you know how to do the job well and love what you do.

Obtain your welding license through the American Welding Society or a similar organization. Then, use Selfgood to stay healthy and grow your business.