How to Start an HVAC Business in Mississippi (2026)

Last updated: February 25, 2026

Starting an HVAC business in Mississippi requires a contractor license from the Mississippi State Board of Contractors (MSBOC). A commercial license is required for HVAC projects valued at $50,000 or more; a residential license covers remodeling and additions of $10,000 or more. The commercial license process involves two PSI exams, a notarized application, a CPA-reviewed financial statement proving net worth, and proof of $300,000/$600,000 general liability insurance. There is no minimum years-of-experience requirement, but you must document three recent relevant HVAC projects. EPA Section 608 certification is a federal requirement for anyone handling refrigerants. This guide walks through every step using official sources.

Mississippi HVAC Contractor Requirements at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation	Mississippi Secretary of State	$50 (online)	3-5 business days
Commercial HVAC License Application	MSBOC	$400	7-10 business days processing
PSI Law & Business Management Exam	PSI Testing Services	$120	After MSBOC notifies PSI
PSI HVAC Trade Exam	PSI Testing Services	$120	After MSBOC notifies PSI
CPA-Reviewed Financial Statement	Licensed CPA (private)	Varies	Required with application; within last 12 months
General Liability Insurance	Private Carrier	Varies	$300,000/occurrence, $600,000 aggregate minimum
Workers’ Compensation Insurance	Private Carrier	Varies	Required at 5+ employees
EPA Section 608 Certification	EPA-approved provider	$20-$50	Before handling refrigerants
Annual License Renewal	MSBOC	$400	Annually; no CE required

How to Start an HVAC Business in Mississippi (Step by Step)

Step 1: Form Your Mississippi LLC

File a Certificate of Formation with the Mississippi Secretary of State online portal ($50, approximately 3-5 business days). Apply for a free federal EIN at IRS.gov. Mississippi LLCs file a free annual report each April 15. Register your business name – if you operate under a name other than your legal LLC name, file a Trade Name with the SOS for $25 (5-year term).

Step 2: Get EPA Section 608 Certification

Federal law (40 CFR Part 82, Clean Air Act Section 608) requires certification for any technician who services, maintains, repairs, or disposes of equipment containing refrigerants. This is a federal requirement independent of Mississippi state licensing.

• Types: Type I (small appliances), Type II (high-pressure), Type III (low-pressure), Universal (all types)
• Recommendation: Get Universal certification to work on all equipment types
• Cost: $20-$50 through EPA-approved certifying organizations (ESCO Institute, NATE, RSES, etc.)
• No expiration: EPA 608 certification does not expire

Step 3: Get Insured

You must have insurance in place before submitting your MSBOC application.

General Liability Insurance (required):

• Minimum: $300,000 per occurrence / $600,000 aggregate
• MSBOC must be listed as certificate holder for cancellation notification
• Most commercial HVAC contractors carry $1 million/$2 million for client and contract requirements

Workers’ Compensation Insurance:

• Required when you have 5 or more employees (Mississippi threshold applies to all industries)
• Businesses with fewer than 5 employees may elect voluntary coverage
• HVAC work carries significant physical risk – voluntary coverage is advisable even below the threshold
• Mississippi Workers’ Compensation Commission: mwcc.ms.gov

Step 4: Obtain a CPA-Reviewed Financial Statement

The MSBOC commercial application requires a financial statement prepared by a licensed CPA within the last 12 months. This is a firm requirement – no exceptions:

• Acceptable: CPA-reviewed financial statement or CPA-audited financial statement
• Not acceptable: Compilations, self-prepared statements, or statements older than 12 months
• Must reflect assets, liabilities, and net worth in accordance with AICPA standards
• Net worth minimums:
  • HVAC specialty classification: $20,000
  • Mechanical major classification: $50,000
• The financial statement is treated as confidential by MSBOC

If you are a new business without substantial assets, you may need to build equity before applying or use personal financial assets as part of the statement. Consult a CPA about meeting the net worth threshold.

Step 5: Submit the MSBOC Commercial Application

Download the current commercial application from the MSBOC website (msboc.us) and complete it carefully. Key requirements:

What to include with your application:

• Completed and notarized MSBOC Commercial Application form
• CPA-reviewed or CPA-audited financial statement (within last 12 months)
• Certificate of general liability insurance ($300,000/$600,000 minimum; MSBOC as certificate holder)
• Proof of workers’ compensation insurance (if 5+ employees)
• Documentation of three recent relevant HVAC projects
• Application fee: $400 (commercial license)

Note on submission: Commercial applications must be notarized and mailed – they cannot be submitted fully online due to the notarization requirement. Mail to MSBOC at the address on the application form.

Contact MSBOC: 601-354-6161 / 800-880-6161 | msboc.us

MSBOC processes applications approximately weekly – expect 7-10 business days before you receive confirmation. Once your application is approved, MSBOC notifies PSI Testing Services of your exam eligibility.

Step 6: Pass the Two PSI Exams

All MSBOC HVAC contractor exams are administered by PSI Testing Services. You cannot schedule exams until MSBOC notifies PSI of your eligibility after approving your application.

Exam	Questions	Time Limit	Passing Score	Fee
Mississippi Law & Business Management	50	2 hours	70%	$120
HVAC Trade Exam	80	4 hours	70%	$120

Exam format: Both exams are open-book and computer-based, administered at PSI testing centers. The HVAC Trade exam covers AC units, heat pumps, ducts, boilers, gas systems, and related mechanical topics. The Law & Business Management exam covers Mississippi contractor regulations and general business practices.

Schedule exams at psiexams.com once you receive your eligibility confirmation from PSI.

Step 7: Receive Your License and Register for Taxes

After passing both exams, your license is issued the following Wednesday after final board approval. Your MSBOC commercial HVAC contractor license is valid for one year and must be renewed annually for $400. No continuing education is required for commercial renewal.

Tax registration: Register for Mississippi sales tax through the TAP portal at dor.ms.gov. HVAC installation labor is generally not subject to Mississippi sales tax, but materials sold as part of a job may be taxable depending on whether the contract is lump-sum (taxable on materials) or time-and-materials (treated differently). Consult a Mississippi tax professional for your specific business model.

Register for Mississippi unemployment insurance with MDES at mdes.ms.gov when you hire employees. New employer rate: 1.0% on the first $14,000 per employee per year.

Startup Cost Breakdown: Mississippi HVAC Business

Item	Cost	Notes
LLC Formation	$50	Mississippi SOS online filing; 3-5 business days
MSBOC Commercial Application Fee	$400	Annual renewal also $400; no CE required
PSI Law & Business Exam	$120	Open-book, 50 questions, 70% passing
PSI HVAC Trade Exam	$120	Open-book, 80 questions, 70% passing
CPA-Reviewed Financial Statement	$500-$2,000	Required; compilations not accepted
General Liability Insurance	$1,500-$5,000/year	$300k/$600k minimum; $1M/$2M recommended
EPA 608 Universal Certification	$20-$50	Federal requirement; does not expire
Tools and Equipment	$5,000-$20,000	Gauges, manifolds, recovery machines, hand tools
Service Vehicle	$15,000-$45,000	Van or truck; used saves significantly
Vehicle Signage and Branding	$500-$1,500	Magnetic signs or vinyl wrap
Workers’ Compensation Insurance	Varies	Required at 5+ employees

Estimated startup cost (solo operator): $25,000-$75,000 (range driven by vehicle and equipment costs)

Related Mississippi Business Guides

• How to Start a Cleaning Service in Mississippi
• How to Start a Food Truck in Mississippi
• How to Start a Daycare in Mississippi
• How to Start a Hair Salon in Mississippi
• How to Start a Landscaping Business in Mississippi
• How to Start a Private Investigation Business in Mississippi

← Back to all Mississippi business guides

Frequently Asked Questions

Do I need a license to start an HVAC business in Mississippi?

Yes, if your projects meet the dollar threshold. A commercial MSBOC license is required for HVAC projects on commercial property valued at $50,000 or more. A residential MSBOC license ($50 application) covers HVAC work on residential remodeling and additions of $10,000 or more. Projects below these thresholds do not require an MSBOC license, but you still need a local business privilege license. Apply through the Mississippi State Board of Contractors at msboc.us.

How much does the Mississippi HVAC contractor license cost?

The commercial HVAC contractor license costs $400 to apply plus two PSI exams at $120 each ($240 total in exam fees). You also need a CPA-reviewed financial statement ($500-$2,000 from a CPA), general liability insurance, and EPA 608 certification. Annual renewal is $400 with no continuing education requirement. The residential license is much cheaper at $50 to apply and $100 to renew annually.

What exams are required for Mississippi HVAC licensing?

Two exams are required, both administered by PSI Testing Services and both open-book and computer-based: (1) the Mississippi Law & Business Management exam (50 questions, 2 hours, $120, 70% passing); and (2) the HVAC Trade exam (80 questions, 4 hours, $120, 70% passing). You can only schedule these exams after MSBOC approves your application and notifies PSI. Schedule at psiexams.com.

What insurance do I need for an HVAC business in Mississippi?

The MSBOC commercial license requires a minimum of $300,000 per occurrence / $600,000 aggregate general liability insurance, with MSBOC listed as certificate holder. Workers’ compensation insurance is required when you have 5 or more employees. Most commercial HVAC contractors carry $1 million/$2 million liability for client and contract requirements. Mississippi workers’ comp is regulated by the Mississippi Workers’ Compensation Commission at mwcc.ms.gov.

Do I need EPA 608 certification in Mississippi?

Yes. EPA Section 608 certification is a federal requirement under the Clean Air Act for any technician who services, maintains, repairs, or disposes of equipment containing refrigerants. This applies regardless of Mississippi state licensing. Get Universal certification to work on all refrigerant types. Cost is $20-$50 through an EPA-approved certifying organization. EPA 608 certification does not expire.

How long does it take to get an HVAC license in Mississippi?

Budget 4-8 weeks total. After submitting your notarized application, MSBOC processes it in 7-10 business days and then notifies PSI. You then schedule and pass both exams, and your license is issued the following Wednesday after the board’s final approval. Delays most commonly occur when applications are missing the CPA-reviewed financial statement or the insurance certificate is incorrectly formatted.