How to Start a Fence Company: Costs, Licenses, Equipment and First Jobs

Most fence companies are started by someone who already knows how to set a post. You worked for a fence contractor, a deck builder or a general contractor, you have done side jobs on weekends, and you noticed that the owner makes the margin. Starting a fencing business is not complicated, but the order matters. Here is the order that keeps you out of trouble.

1. Decide what you will build first

Pick two or three fence types you can build well and price with confidence. For most new owners that means wood privacy, chain link and repairs. Wood privacy is the most common residential fence in most of the country, chain link is fast and sells to landlords and businesses, and repairs fill the slow weeks and bring in future installs.

Vinyl and aluminum come next. Both are mostly panels and posts, so they are fast to install once you know your supplier's system, but a mistake on layout costs you a whole panel. Leave pool code fences, commercial jobs with bonding requirements and anything over 8 feet for your second year.

2. Handle the paperwork

• Register the business with your state. An LLC is common and costs $50 to $300 in most states
• Get an EIN from the IRS. It is free and takes ten minutes online
• Check contractor licensing. Some states license fence work under a home improvement or specialty contractor license, others only require a local business license. Call your county before your first paid job
• Get general liability insurance. Expect $1,200 to $3,000 a year for a $1 million policy as a small fence crew. Hitting a gas line or a sprinkler main is the claim you are insuring against
• Add workers' comp before your first employee. Most states require it
• Open a business bank account and keep every deposit separate from personal money

3. Equipment you actually need

You can start with less than most people think:

• A truck that can pull a trailer. You already have one or you are not starting yet
• A utility trailer, 6 by 12 feet or larger, $2,000 to $4,000 used. It hauls posts, panels and the old fence
• A one-man or towable auger. Rent one for $100 to $150 a day at first. Buy once you are setting posts three days a week
• Post hole digger, digging bar, shovels and a tamping bar, about $200
• A string line, line level, post level and a 300-foot measuring tape or wheel
• Cordless tools: an impact driver, a circular saw, a reciprocating saw and a miter saw, $800 to $1,500 if you do not own them
• A concrete mixer is optional. Most crews use fast-setting mix poured dry and watered in the hole

A realistic starting budget with a truck you already own is $5,000 to $15,000, most of it trailer, tools and insurance. You do not buy material for a job until the customer pays a deposit, which is the habit that keeps a new fence company alive.

4. Set your price per foot before the first call

Fence is priced by the linear foot. Most owners use a starting price that covers the first stretch of fence, because the trip, layout and setup cost the same on a short run as on a long one, then a rate for each foot after that. With typical rates, a 6 ft wood privacy fence might be $2,000 for the first 50 feet and $30 a foot after, so 150 feet comes to $5,000. Our guide on how much to charge per linear foot walks through the math from your material cost up.

5. Take a deposit on every job

Fence materials cost a lot and are hard to return. Take a deposit when the customer signs, usually 30% to 50% depending on your state's rules, and order material only after it clears. Collect the balance on the final walk. A deposit and balance invoice the customer pays by card keeps that simple.

6. Find your first 20 customers

• Tell everyone you know, and post photos of every fence you build in local Facebook groups and Nextdoor
• Set up a Google Business Profile with your service area and photos of your work
• Put a yard sign on every job for the week you are there. Neighbors look at a new fence
• Call property managers and realtors. They need repairs, gates and chain link fast
• Get a simple website with prices. People shopping for a fence want a number before they call. A fence company website that shows a price per foot gets the call from people who already accept your range

Read how to get fence customers for the full playbook.

7. Learn permits and property lines on day one

Many towns require a permit for a new fence, and almost every state requires you to call 811 before you dig. Build both steps into your schedule from the first job. Fence permits and property lines covers what to check.

How fast it grows

A small fence crew can install one to three residential fences a week in season. The owners who grow fastest answer the phone, show prices up front and take a deposit on every job, so they never front material money for a customer who changes their mind.