Starting a roofing business in Illinois is a promising venture, given the state’s robust construction market and high demand for skilled roofing professionals. With over 4,500 roofing contractors operating in Illinois as of 2025, a nearly 9% increase from 2023, the industry is thriving, especially in major cities like Chicago, Poplar Grove, and Peoria. If you’re considering launching your own roofing company or seeking your state license, this guide will walk you through every critical step. You will learn everything from legal requirements to market insights and practical tips for success.
Why Start a Roofing Business in Illinois?
Illinois is among the top three states for roofing employment in the U.S., with 6,240 roofers as of May 2023. The state’s roofing industry is part of a broader U.S. market valued at $23.35 billion in 2023, projected to grow at a 6.6% CAGR through 2032. Illinois
also offers some of the highest average annual salaries for roofers in the country, $70,110, making it an attractive location for new entrants.
Step 1: Understand Illinois Roofing License Requirements
Before you can legally offer roofing services in Illinois, you must obtain a roofing contractor license in Illinois from the Illinois Department of Financial and Professional Regulation (IDFPR). There are two main license types:
● Limited Roofing License: For residential properties with 8 units or less.
● Unlimited Roofing License: For all residential, commercial, and industrial properties.
Key Requirements
● Surety Bond: $10,000 for Limited, $25,000 for Unlimited license.
● Property Damage Insurance: Minimum $250,000.
● General Liability Insurance: Minimum $500,000.
● Workers’ Compensation Insurance: Required if you have employees.
● Application Fee: $125 (non-refundable).
● State Exam: Qualifying party must pass the relevant exam (Residential or Unlimited).
Step 2: Register Your Business
Choose a legal business structure such as a sole proprietorship, partnership, LLC, or corporation, and register your business with the Illinois Secretary of State. Obtain a federal Employer Identification Number (EIN) from the IRS and register for state taxes if you plan to hire employees.
Step 3: Designate a Qualifying Party
Every roofing company must have a “qualifying party” which is the individual who passes the state exam and is responsible for supervising operations. This person must be actively involved in the business’s daily activities and compliance.
Step 4: Prepare for and Pass the State Exam
The Illinois roofing exam ensures that contractors understand safety, materials, installation methods, and business regulations. The Limited License exam consists of 80 questions in 90 minutes, while the Unlimited License exam has 130 questions over 2.5 hours.
Exam topics include:
● Safety and employee protection
● Roofing materials and preparation
● Steep- and low-slope roofing systems
● Business practices and legal compliance
For exam preparation, consider enrolling in a specialized prep course or using study guides recommended by the IDFPR and industry organizations.
Step 5: Secure Insurance and Surety Bond
You must provide proof of the required surety bond and insurance coverage with your license application. Insurance protects your business and clients from accidents, property damage, or legal claims.
Step 6: Submit Your Application
Complete the IDFPR roofing contractor application, attach all supporting documents (insurance, bond, exam results), and pay the application fee. Processing typically takes several weeks.
Step 7: Build Your Brand and Grow Your Business
With your license in hand, focus on establishing your company’s reputation and presence. As of 2025, 78.9% of Illinois roofing companies are single-owner operations, highlighting the opportunity for independent businesses to thrive. Here’s how to get started:
● Develop a Professional Website: Most customers search for roofing services online.
● Market Locally: Target neighborhoods with older homes or recent storm damage.
● Network: Join local trade associations and attend industry events.
● Offer Warranties: Stand out by providing workmanship guarantees.
Illinois Roofing Industry: Key Statistics
● Number of Roofing Contractors: 4,548 in Illinois as of October 2024—a nearly 9% increase from 2023.
● Industry Growth: U.S. roofing market valued at $23.35 billion in 2023, with a projected 6.6% CAGR through 2032.
● Average Roofer Salary in Illinois: $70,110, second-highest in the U.S..
● Major Markets: Chicago leads with 2,858 contractors, followed by Poplar Grove (150) and Peoria (85).
For more details and the latest statistics, visit [ConsumerAffairs Roofing Industry Statistics]3 and [Rentech Digital Illinois Roofing Contractors].
Common Challenges and How to Overcome Them
1. Navigating Regulations:
Stay updated with IDFPR rules and local ordinances. Some cities, like Chicago, require additional general contractor licenses.
2. Competition:
With thousands of contractors in Illinois, differentiate your business through quality, certifications, and customer service.
3. Insurance Costs:
Shop around for insurance providers to find competitive rates that meet state requirements.
4. Workforce Management:
If hiring, ensure all employees are covered by workers’ compensation and receive safety training.
Start Your Lucrative Roofing Business Now
Illinois offers a lucrative and growing market for roofing professionals. By following the outlined steps of securing the right license, passing the state exam, obtaining insurance, and building a strong local brand, you can establish a successful roofing business. With
high demand, competitive wages, and a supportive regulatory environment, now is an excellent time to enter the Illinois roofing industry.
Also Read: Tips for Choosing the Right Roofing Company for Your Home
