How to Start a Home Theater Installation Business

Home Theater Installation Business Image

Our guide on starting a home theater installation business covers all the essential information to help you decide if this business is a good match for you. Learn about the day-to-day activities of a home theater installation business owner, the typical target market, growth potential, startup costs, legal considerations, and more!

Try Our Tools

Find the perfect business for you with our

Business Ideas Tool.

Start a home theater installation business by following these 9 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your home theater installation business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

  • What are the initial costs?
  • Who is your target market?
  • How long it will take you to break even?
  • What will you name your business?

Luckily we have done a lot of this research for you. Skip on ahead to the Business Overview for more detailed answers to all your questions.

Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Find a Domain Now

Powered by

After registering a domain name, consider setting up a professional email account ( Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

STEP 2: Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your home theater installation business is sued. Consider using a registered agent service to help protect your privacy and stay compliant.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

STEP 4: Open a business bank account

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get Business Insurance

Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.

STEP 8: Define your brand.

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

STEP 9: Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

Recommended action box icon

Select your state below for an in-depth guide on completing each of these steps in your home state.

Business Overview

A home theater installation business specializes in setting up the assorted audio and video equipment for individual home theaters. Many such businesses branch out and offer their services to organizations such as schools, businesses, universities, and churches that may also need such specialized assistance. In this way, such a business can almost immediately assert itself as a vital component of the community.

Who is this business right for?

Obviously, this business is great for individuals who have a love and an aptitude for setting up things like big screen TVs and surround sound theater systems. It's also good for a “people person,” as you will be working with members of every demographic within your community. Finally, it's good for those who often shop for these kinds of materials online: being able to make recommendations for where customers can buy equipment they want at competitive prices can really help set your business apart.

What happens during a typical day at a home theater installation business?

With luck, most of your days will be spent inside customer's homes, and you will be installing everything they require. Time not spent doing this may be spent advertising your business, communicating with customers (or prospective customers), and possibly ordering and receiving equipment for customers.

What is the target market?

While you will appeal to many demographics, your target market will typically be men in their mid to late thirties. This is a demographic that is likelier to be settling into a permanent home and have enough disposable income to set this up, possibly as part of a “man cave.”

How does a home theater installation business make money?

Typically, you will make money by charging fixed fees for particular services (such as mounting a flat screen TV, setting up a stereo, and so on). You may consider offering “bundles” that allow customers who need a variety of services to save money.

What is the growth potential for a home theater installation business?

The growth potential for this business is modest, with the Bureau of Labor Statistics estimating that the broader field of broadcast and sound engineer technicians to grow by seven percent between 2014 and 2024.

What are some skills and experiences that will help you build a successful home theater installation business?

Obviously, previous experience setting up your own home entertainment system and those of your friends and family is really valuable. While not required, any formal education in audio and video related fields can also help you set this business up more quickly. Finally, any experience you may have had working in a similar field as an employer who offers this service (such as Best Buy) can help you understand how the competition works and to help you set your business apart,

What are the costs involved in opening a home theater installation business?

Perhaps the best thing about a home theater installation business is that it has a truly low start-up cost. In fact, you could likely start your business for about $3000, with $500 of that going towards a professional website, $500 going towards getting insurance, and the rest going towards a mixture of radio, newspaper, and online advertisement. The nature of the business requires traveling to your clients' homes, so you have no real overhead of your own. Similarly, clients will have already paid (or will order themselves) any of the equipment they want to set up. In short: you show up, you set things up.

Where can I find a business mentor?

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

What are some insider tips for jump starting a home theater installation business?

Be sure to call around your area and see what your competition charges and what services they offer. This lets you make both your prices and your services competitive and enticing for your customers.

TRUiC's YouTube Channel

For fun informative videos about starting a busines visit the TRUiC YouTube Channel or subscribe below to view later.

Subscibe to our YouTube channel

Growing Your Business

How to promote & market a home theater installation business

As mentioned earlier, it's worth initially advertising via traditional channels such as newspaper and radio. However, don't overlook the power of internet advertising. You can advertise this way via your own website, through social media pages you will create, and through paid online advertising.

Recommended: Get started with local advertising for your business with a $300 credit from Yelp.

How to keep customers coming back

In addition to the above, consider developing working partnerships with local stores that sell audio and video equipment so that you can advertise for one another. One savvy bit of advertising might be to advertise at your local theater, telling prospective customers that you will help bring the classic theater experience to their homes. In terms of customer retention, try to enroll all of your customers (and prospective customers) on a monthly email newsletter. This lets you advertise new products and services, relevant coupons or deals, and anything else that helps keep your business on their minds.

How and when to build a team

The nature of this business ensures that you will spend most of your time working alone. One possible exception may occur if your business branches out to offer more complex services such as home automation. Because of the complexity (and possible local or state laws requiring certification), it may be worth it to periodically work with a certified electrician to help with these particular jobs.

Legal Considerations

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an AV Installation business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For information about local licenses and permits:

Maintain Personal Asset Protection

Don’t think that just forming an LLC, or any other type of business, will save your personal assets in case of a lawsuit or other matter by itself.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

Two of the simplest steps that will protect your business, and yourself, are to:

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • It also makes accounting and tax filing easier.

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment later on.
A smiling man sits at a computer and learns about corporate veils


To learn more about maintaining your LLC's corporate veil, read our guide and protect your personal assets.

Service Agreement

Home theater installation businesses should require clients to sign a service agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example service agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your home theater installation business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Certificate of Occupancy

Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a location:
    • It is generally the landlord’s responsibility to obtain a CO.
    • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a AV installation business.
    • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
  • If you plan to purchase or build a location:
    • You will be responsible for obtaining a valid CO from a local government authority.
    • Review all building codes and zoning requirements for your business’ location to ensure your AV installation business will be in compliance and able to obtain a CO.

Earning Potential

How much can you charge customers?

Your prices may vary considerably based on the exact service you are performing, how much competition you have, and the general economy of the area. For instance, you might charge between $300-$1000 for a full setup that includes setting up a TV and surround sound stereo system. This charge would include installing any relevant boxes and completing any relevant wiring and any relevant cable setup. Typically, you would create a chart of prices, though, that allows compares to pay less for a single specific service. You may also charge separate fees for consultation (simply helping people plan their home theaters) and possibly more specialized services, such as any home automation in the room.

What are the ongoing expenses for a home theater installation business?

Aside from paying approximately $500 for insurance per year and $100 per year to maintain your website hosting, this job has no ongoing expenses aside from fuel spent driving to customer's homes. Also, you may periodically decide to run more advertisements offline, online, or both. Other than this, your customers will be paying for and providing all of the materials, so you have no need to store large amounts of equipment.

How much profit can a home theater installation business make?

The nature of this business means that the amount of profit that you make is entirely up to the amount of customers you have and the array of services they require. For instance, if you charge $500 for basic home theater installation and service two hundred customers in the area, then you can turn this into a six-figure job. Realistically, you will make less than that (at least, initially), but this is also a job that can easily be performed “part-time” while you are starting out. This allows you to gauge how regularly your services will be required in this area.

How can you make your business more profitable?

The main key to making this business more profitable is expansion. Specifically, expanding the services that you offer to include things like home automation automatically increases your potential customer base. And expanding your customers to schools, universities, and corporations that may need help setting up media rooms not only gives you more customers, but may give you a regular client that calls upon you for years to come. Finally, you may consider offering more services in terms of finding home theater equipment and procuring it. Realistically, this doesn't take you that long, but a customer who feels out of his depth will feel relieved that you are willing to do this.

Next Steps

Get more ideas with our Business Ideas Tool.

Check out our How to Start a Business page.

Sign up at the Business Center to access useful tools for your business.