Start an Upholstery Business: A Step-by-Step Guide

Starting Your Own Upholstery Business

An upholstery business restores and recovers furniture for residential and commercial clients. This trade has low startup costs and flexible work options. You can work from home with basic tools and grow by doing quality work—just check local regulations for running a home based business.

The U.S. furniture repair & reupholstery market is roughly $2.1 billion in 2025.

It’s highly fragmented with no dominant player. Growth has been modest or flat in recent years.

Step 1: Research the Market and Define Your Services

Start by checking demand in your area. Look for competitors offering upholstery services. Check their pricing, services, and customer reviews. Visit local furniture stores, antique shops, and interior design firms to see if partnerships make sense.

Decide what services you will offer:

• Residential furniture reupholstery
• Commercial seating repair
• Automotive upholstery
• Marine upholstery
• Antique furniture restoration
• Custom furniture creation

Target customers who own high-quality furniture. People with expensive pieces are more likely to pay for professional reupholstery than replace items. Commercial clients like restaurants, hotels, and offices provide repeat business.

Consider specializing to stand out. Vintage furniture restoration, eco-friendly materials, or commercial seating can differentiate your business. Research the specifics of your chosen niche before committing.

Step 2: Assess Your Skills and Get Training

Upholstery is a hands-on skill. You need to understand fabric types, furniture construction, and proper techniques. If you lack experience, seek training before launching.

Options for learning include:

• Community college courses in upholstery
• Trade schools with furniture restoration programs
• Apprenticeships with established upholsterers
• Online courses and video tutorials
• Books on upholstery techniques

Many successful upholsterers start with basic skills and improve through practice. Since customers do not see work in progress, you can fix mistakes before delivery. Start with simple projects and advance to complex pieces as skills develop.

Step 3: Write a Business Plan

A business plan is your roadmap. It helps you think through costs, pricing, and day-to-day work. Create a clear plan covering these elements:

• Services offered and pricing structure
• Startup costs and funding sources
• Target market and customer acquisition
• Equipment and supply needs
• Workspace requirements
• First-year revenue projections

List every expense. Include tools, materials, workspace setup, vehicle costs, insurance, licenses, and marketing. Identify how you will fund these costs through savings, loans, or credit cards.

Set realistic revenue goals you can track. A solo operator completing two projects weekly at $500 each generates $52,000 annually. Factor in material costs and overhead to calculate net profit.

Step 4: Choose a Business Structure

Choose a legal structure for your business. This affects taxes, liability, and paperwork. Common options include:

Sole Proprietorship: The simplest structure. You and the business are the same legal entity. Easy to set up with no formation fees. Personal assets are not protected from business debts. Sole proprietors can file under an SSN, but many choose an EIN for privacy and banking.

Limited Liability Company (LLC): Separates personal and business assets. Protects your home, car, and savings from business lawsuits. Filing fees vary by state (about $35–$500). Single-member LLCs without employees aren’t always required to obtain an EIN for tax purposes, though many banks will ask for one.

Most upholstery businesses benefit from LLC protection. The cost is minimal compared to liability risk. If you plan to work from home initially and have limited assets, a sole proprietorship works. You can convert to an LLC later as the business grows.

Step 5: Register Your Business and Get an EIN

Register your business name with your state. Visit your Secretary of State website to check name availability. File the necessary formation documents. For an LLC, file Articles of Organization. For a sole proprietorship using a name other than your own, file a DBA (Doing Business As).

Apply for an Employer Identification Number (EIN) on the IRS website. This free nine-digit number identifies your business for taxes. You need an EIN if you:

• Form an LLC or corporation
• Hire employees
• Open a business bank account
• File excise or pension tax returns

Apply for an EIN online with the IRS at no cost; if approved, it’s issued immediately online. Keep the confirmation letter in your records.

Step 6: Obtain Licenses and Permits

Most states do not require special upholstery licenses. General business licenses typically suffice. Requirements vary by location. Check yours. Follow proper startup steps to ensure compliance.

Contact these offices to determine your requirements:

• City or county clerk for general business license
• State Department of Revenue for sales tax permit
• Local zoning office for home business permits
• State environmental agency if using chemicals

Home-based businesses often need zoning approval. Verify that your residence allows commercial activity. Some areas restrict businesses that generate traffic or noise.

A sales tax permit lets you collect sales tax from customers. Get a sales tax permit if your state taxes what you sell. Most states tax tangible goods; taxation of services varies by state. Check your state revenue department for specifics.

Step 7: Get Business Insurance

Insurance protects your business from big losses.

Ask carriers about a Business Owner’s Policy (BOP) that bundles general liability and property coverage; it’s often more cost-effective than buying separate policies.

General Liability Insurance: Covers third-party property damage and bodily injury claims. It usually excludes the cost to repair or replace your own faulty work (“your work” exclusion). Plan for about $500–$1,200+ per year for typical limits (median around $800), depending on location, work, and claims history.

Commercial Auto Insurance: If the vehicle is titled to the business or mainly used for work, you’ll likely need commercial auto. Personal auto policies often exclude or limit business use—confirm with your carrier.

Professional Liability (E&O) Insurance: Covers allegations of negligence or errors in your services. It’s different from general liability and doesn’t act as a workmanship warranty.

Workers’ Compensation: Mandatory in most states if you hire employees. Covers medical costs and lost wages for work-related injuries.

Start with the coverage you need now and add more as you grow. Compare quotes from multiple insurers to find the best rates. Review insurance options carefully before purchasing.

Step 8: Set Up Your Workspace

You need space to cut fabric, sew, and assemble furniture. Starting from home keeps costs low. A garage, basement, or spare room works initially.

Workspace requirements:

• Ground-level access to avoid stairs
• Adequate lighting for detail work
• Space for large furniture pieces
• Storage for tools and materials
• Ventilation for adhesives and chemicals
• Electrical outlets for power tools

Organize the space into work zones. Create a cutting area with tables and rulers. Set up a sewing station with your machine. Designate storage for fabrics, foam, and supplies. Keep frequently used tools within reach.

Staple guns and sewing machines can be noisy—choose a spot that won’t bother neighbors and let them know your hours.

As business grows, consider renting commercial space. Look for ground-floor units with loading access. Factor rent, utilities, and property insurance into your budget.

Step 9: Purchase Essential Tools and Equipment

Quality tools improve work speed and results. Start with basics and add specialized equipment as needed. A lean home setup can start around $1,500–$3,500; plan more if you buy an industrial walking-foot machine ($1,200–$2,000+).

Essential tools include:

• Pneumatic staple gun with air compressor
• Heavy-duty sewing machine for upholstery fabric
• Fabric shears and utility knife
• Webbing stretcher for furniture springs
• Tape measure and framing square
• Foam cutter or electric knife
• Upholstery needles and thread
• Tack lifter and staple remover
• Rubber mallet
• Cordless drill and screwdriver set

Buy professional-grade tools. Hardware store staple guns lack power for furniture hardwoods. Pneumatic staplers give consistent results and reduce hand fatigue.

Purchase a heavy-duty sewing machine designed for thick fabrics. Standard home machines cannot handle upholstery materials. Look for industrial or semi-industrial models.

You may already own basic tools like tape measures, scissors, and drills. This reduces startup costs. Purchase specialized upholstery tools from suppliers or online retailers.

Step 10: Source Materials and Suppliers

Build relationships with fabric and foam suppliers. Wholesale pricing improves your margins. Many suppliers offer accounts to small businesses.

Materials you will need:

• Upholstery fabric in various weights and patterns
• Foam padding and cushioning
• Batting and wadding
• Webbing and springs
• Staples and tacks
• Thread and needles
• Adhesives and glues

Research wholesale fabric suppliers online. Companies like Fabric Wholesale Direct, Revolution Fabrics, and Decorative Fabrics Direct serve upholstery businesses. Compare prices and minimum orders.

Local foam distributors often offer better prices than retail stores. Search for industrial supply companies in your area. Build relationships with sales representatives who can alert you to deals.

Some customers provide their own fabric. This eliminates material cost but requires careful handling of expensive textiles. Clarify who is responsible for material selection up front.

Step 11: Set Your Pricing

Your pricing drives your profit.

Calculate costs for each project including materials, labor, and overhead. Add your profit margin to reach the final price.

Consider these factors when pricing:

• Complexity of the piece
• Time required to complete work
• Cost of materials
• Your skill level and experience
• Local market rates
• Customer budget and furniture value

Typical chair projects range from about $200–$1,100+ (dining chairs on the low end; wingbacks and recliners higher). Sofas often range $600–$4,000+, with a national average around $1,800. Complex antique pieces command higher prices.

Research competitor pricing in your area. Call other upholsterers for quotes on common items. Price to stay competitive and still earn a profit. Learn pricing strategies that balance value and profit.

Track time spent on each project. This data helps refine estimates and improve efficiency. As skills develop, you complete work faster and increase profit per hour.

Step 12: Open a Business Bank Account

Keep business and personal finances separate. A dedicated account simplifies tax preparation and tracks business performance. Many banks prefer an EIN to open business accounts, but sole proprietors (and some single-member LLCs) can often open with an SSN/ITIN—check the bank’s requirements.

Compare accounts at different banks. Look for:

• Low monthly fees or free accounts
• No minimum balance requirements
• Online banking and mobile deposits
• Business debit card included
• Integration with accounting software

Bring your EIN confirmation (if you obtained one), business formation documents, and personal identification to the bank. Some banks waive fees for new businesses during the first year.

Deposit all business income into this account. Pay all business expenses from it. This creates a clear tax record and shows the IRS you’re running a real business.

Step 13: Set Up Basic Accounting

Track income and expenses from day one. Simple spreadsheets work initially. As volume increases, use accounting software.

Record these details:

• Customer payments received
• Material purchases and costs
• Tool and equipment expenses
• Vehicle and fuel costs
• Insurance and license fees
• Marketing and advertising spending

Save all receipts and invoices. Organize them by month or category. These documents support tax deductions and provide insight into spending patterns.

Use Wave (free) or QuickBooks (paid) for invoicing, expense tracking, and reports, and connect your bank to import transactions automatically.

Set aside money for quarterly estimated taxes if you operate as a sole proprietorship or single-member LLC. The IRS requires estimated payments when you owe more than $1,000 annually.

Step 14: Create Service Agreements

Written agreements protect you and your customer. They outline project scope, timeline, payment terms, and responsibilities.

Include these elements in agreements:

• Detailed description of work to be performed
• Materials to be used and who provides them
• Project timeline and completion date
• Total cost and payment schedule
• Deposit amount required up front
• Cancellation and refund policies
• Liability limitations

Take a deposit before you start. Many shops take a 30%–50% deposit to cover materials; set and disclose your policy.

Address what happens if customers provide materials. Specify that you are not responsible for defects in customer-supplied fabric or damage during normal use.

Have customers sign before work begins. Keep copies for your records. This document helps resolve disputes about scope or pricing.

Step 15: Develop Initial Marketing Materials

Marketing attracts your first customers. Start with low-cost methods that build local awareness.

Create essential materials:

• Business cards with contact information
• Before-and-after photos of completed work
• Basic website or social media presence
• Printed flyers for local distribution

Business cards cost little but open opportunities. Hand them to everyone you meet. Leave them at furniture stores, antique shops, and community centers.

Document every project with photos—before you start, during the work, and after you finish. These images demonstrate quality and attract new customers.

A simple website builds credibility. Include your services, pricing ranges, contact info, and photo galleries. Free website builders like Wix or Squarespace work well for new businesses.

Use Facebook and Instagram to showcase your work. Post project photos regularly. Engage with local community groups and furniture enthusiasts. These platforms cost nothing but time.

Step 16: Find Your First Customers

Initial customers come through personal networks and local outreach. Tell everyone about your new business.

Methods to attract customers:

• Contact friends and family needing upholstery work
• Visit antique dealers and furniture stores
• Introduce yourself to interior designers
• Join local business networking groups
• Post in community Facebook groups
• Offer introductory discounts for first customers

Partner with complementary businesses—furniture stores often need repairs, antique dealers need restoration, and designers need reliable upholsterers for clients.

Offer competitive pricing at first to build a portfolio. Satisfied customers provide referrals and testimonials. Word-of-mouth remains the most effective marketing for upholstery businesses.

Consider upcycling projects to build inventory. Find used furniture at low cost, restore it, and sell for profit. This demonstrates skills while generating income.

Step 17: Prepare for Launch

Before accepting your first paid job, ensure everything is ready.

Before you launch, confirm:

• Business structure registered with state
• EIN obtained from IRS
• Required licenses and permits secured
• Insurance policies active
• Workspace organized and equipped
• Tools purchased and tested
• Material suppliers identified
• Business bank account opened
• Pricing structure established
• Service agreements prepared
• Marketing materials created

Test your tools on practice pieces before taking customer work. Verify that your sewing machine handles heavy fabrics. Ensure your staple gun has adequate power. Practice removes uncertainty and builds confidence.

Start small and grow gradually. Accept projects you can complete with current skills. Build reputation through quality work and customer service. Success in upholstery comes from consistent results and satisfied clients.

The upholstery business offers independence and creative satisfaction. Low startup costs and flexible arrangements make it accessible to new entrepreneurs. With proper preparation and quality work, you can build a profitable business serving your community.

101 Tips for Running Your Upholstery Business

Thinking about launching or improving an upholstery business? Use these practical tips to avoid beginner mistakes, work safely, and build a steady flow of customers. Every tip is specific and action-driven so you can move from idea to execution with confidence.

This guide is tailored for first-time entrepreneurs in the United States. Always check your state and local rules before you commit to purchases or policies.

What to Do Before Starting

1. Define your service scope early—residential, commercial, automotive, marine, or antiques—so you can price accurately and buy the right tools and materials.
2. Interview three local upholsterers as a “mystery shopper” to learn going rates, wait times, and what customers complain about most.
3. Map your supply chain before day one—identify at least two vendors for foam, fabric, webbing, adhesives, and hardware to avoid stockouts.
4. Price three starter packages (basic, premium, heirloom) with clear inclusions to simplify quoting and avoid scope creep.
5. List the jobs you won’t take at launch—very large commercial contracts, complex antiques, or convertible car tops—until you build skills and capacity.
6. Create a simple financial model: materials % of job price, labor hours per job, overhead per month, and breakeven jobs needed monthly.
7. Decide your turnaround promise (e.g., 2–4 weeks for standard chairs) and align your scheduling and inventory to meet it.
8. Secure a workspace with proper ventilation, good lighting, and safe storage for flammables; measure doorways for large sofas.
9. Build a photo portfolio by reupholstering a few personal or donated pieces; show before, during, and after shots with close-ups of seams.
10. Choose an accounting system and job numbering format now so every estimate, invoice, and work order ties together cleanly.

What Successful Upholstery Business Owners Do

11. Standardize time estimates for common tasks (strip, spring repair, webbing, padding, sewing, install) and refine them with real data.
12. Batch similar work—cut all foam at once, sew multiple cushion covers together—to reduce setup time and errors.
13. Use checklists at drop-off, mid-job, and final inspection to catch flaws before the customer does.
14. Track rework causes (fit, wrinkles, pattern mismatch) and fix the root process, not just the single job.
15. Photograph every piece on intake from multiple angles to document pre-existing damage and guide restoration.
16. Review weekly: quoted hours vs. actual, material usage variance, and on-time delivery rate.
17. Negotiate early-payment discounts with suppliers and pass savings to customers through packaged pricing.
18. Invest in ergonomic tools and benches to protect your hands, back, and shoulders so you can work consistently.

Running the Business (Operations, Staffing, SOPs)

19. Write an intake SOP: tag the piece, record dimensions, fabric choice, pattern direction, special requests, and target pickup date.
20. Create a material pull sheet per job: fabric code, yards required, foam density/thickness, webbing type, zipper length, and thread size.
21. Use cut tickets with pattern matching notes (centerline, repeats, nap direction) to avoid waste and mismatched seams.
22. Label all removed parts (tacks, legs, casters) in zip bags per job so nothing “walks” between benches.
23. Schedule by constraints—fabric arrival, foam lead time, and bench availability—rather than first-come-first-served.
24. Stage work in bins by job number so pieces don’t get mixed; never put two jobs on the same bench.
25. Set a maximum WIP (work in progress) limit to keep turnaround predictable and reduce stress.
26. Calibrate sewing machines weekly and keep spare needles, bobbins, and belts to avoid downtime.
27. Measure twice, cut once—train staff to dry-fit with muslin when working with expensive or patterned fabric.
28. Use a two-person lift rule for heavy frames or long sofas; add furniture dollies to reduce strain and accidents.
29. Document adhesives and solvents in a simple inventory with SDS sheets accessible and dated.
30. Lock up blades and staple guns when not in use; post tool-specific safety rules at each station.
31. Back up all job photos and documents to the cloud by job number so you can answer questions instantly.
32. Hold a 10-minute daily standup covering today’s jobs, risks (missing fabric), and any customer promises.
33. Close each day with a bench reset—sweep, empty trash, restock staples and thread—so tomorrow starts fast.

What to Know About the Industry (Rules, Seasons, Supply, Risks)

34. Lead times swing with seasons—expect spikes before holidays and in spring; plan capacity and quotes accordingly.
35. Foam and fabric pricing can change with oil and logistics costs; build a clause allowing material surcharges when needed.
36. Ensure finished upholstered furniture complies with the federal flammability standard (TB-117-2013) and required CPSC labeling; California also requires flame-retardant content disclosure (SB-1019).
37. Some fabrics require specific cleaning codes (W, S, WS, X); document the chosen fabric’s care code on the work order.
38. Sunlight and pets drive repeat business; educate customers on fade, abrasion, and stain resistance to set expectations.
39. Antique frames can hide structural damage; include an authorization step for additional repairs discovered during teardown.
40. Auto and marine upholstery often uses UV-stable thread and mildew-resistant foam; stock accordingly if you offer those services.
41. Commercial clients may require certificates of insurance and W-9 forms; prepare templates in advance.
42. Keep a recall log for any hardware or foam advisories and contact customers if safety issues arise.
43. Track fabric dye lot numbers on each job to avoid color mismatches when reordering.

Marketing (Local, Digital, Offers, Community)

44. Publish before/after galleries by category (sofas, dining chairs, headboards) to match how customers search.
45. Show short behind-the-scenes videos of stripping, webbing, and pattern matching to build trust in your craftsmanship.
46. Offer a “fabric consultation” appointment with swatches so customers commit while excitement is high.
47. Partner with interior designers and furniture refinishers for referrals; set a clear referral process and turnaround.
48. Create a “Save the Sofa” calculator comparing reupholstery vs. new purchase to highlight value and sustainability.
49. Run seasonal campaigns—“Holiday Refresh” or “Spring Makeover”—with limited slots to create urgency.
50. List your business on local directories with photos, service list, and hours; keep NAP (name, address, phone) consistent.
51. Ask every happy customer for a review and include the job type in your request to boost relevant search visibility.
52. Offer pickup and delivery in a defined zone with transparent fees; feature it prominently on your site.
53. Bundle services: cushion re-stuffing plus zipper replacement at a package price to increase average order value.
54. Join community groups and showcase a restored piece at local events to spark word-of-mouth.
55. Share care tips on social media—fabric cleaning codes, pet-friendly options, sun fade prevention—to educate and attract.
56. Offer a trade program for designers with simple terms (volume, payment timing, priority scheduling).
57. Use a “virtual estimate” form: photos, dimensions, fabric preference, and desired timeline to qualify leads quickly.
58. Track marketing sources on every lead and reallocate budget to the channels that convert to paid jobs.

Dealing with Customers (Trust, Education, Retention)

59. Use a written estimate that breaks out labor, materials, and optional repairs so customers see where money goes.
60. Explain pattern repeats and placement on large pieces so expectations match reality.
61. Offer fabric education in plain language: abrasion ratings, cleaning codes, stain resistance, and pet suitability.
62. Provide a simple project timeline with two or three milestones so customers never wonder what’s happening.
63. Send check-in updates with one progress photo for longer jobs to reduce anxiety and calls.
64. Give a care card at pickup covering vacuuming, spot cleaning, and sun exposure to prolong results.
65. Track customer preferences (style, fabrics used, pet ownership) and reference them in future recommendations.
66. Set a fair reschedule and storage policy to keep the schedule moving without surprises.

Customer Service (Policies, Guarantees, Feedback)

67. Create a workmanship warranty in plain English that covers seams and fit for a set period; state what is excluded.
68. Require written approval for change orders with new prices and dates so nothing is ambiguous.
69. Use a final inspection checklist (wrinkles, welt alignment, staple visibility, cushion fit) before customer pickup.
70. Document all customer fabric supplied (COM): note defects, measure yardage, and disclaim shrinkage or color issues.
71. Offer a 48-hour fit adjustment on cushions to fine-tune foam density and comfort.
72. Collect feedback after delivery with three questions: quality, communication, timeliness—then act on it.
73. Resolve issues quickly: schedule an in-home touch-up or pickup within a set window if something isn’t right.
74. Publish response times (e.g., quotes in 2 business days) and meet them to build trust.

Sustainability (Waste, Sourcing, Long-Term)

75. Salvage reusable frames and hardware when quality allows to reduce costs and waste.
76. Offer eco-forward options: certified low-VOC adhesives, recycled-content foam, and sustainably sourced fabric when available.
77. Separate waste streams—metal tacks, foam, fabric scraps—for responsible disposal or recycling where feasible.
78. Recommend re-stuffing quality cushions instead of replacing whole pieces to extend furniture life.
79. Educate customers on durable, repairable designs to reduce future waste and promote long-term value.
80. Use natural light and energy-efficient lighting to improve visibility and reduce utility costs.
81. Maintain tools to extend lifespan and reduce replacement purchases.

Staying Informed (Trends, Sources, Cadence)

82. Review trade and small-business resources monthly for updates on safety, adhesives, and best practices.
83. Follow fabric mills and foam suppliers for notices on new lines, care codes, and lead times.
84. Track your top 10 fabrics and foams by rework rate to guide future recommendations.
85. Attend at least one workshop or webinar annually on advanced techniques like tufting or leather repair.
86. Maintain a vendor change log noting price shifts and quality issues to inform purchasing.

Adapting to Change (Seasonality, Shocks, Competition, Tech)

87. Create a waitlist system for peak seasons and offer off-peak incentives to balance demand.
88. Keep a buffer stock of staple supplies (thread, staples, common foam sizes) to ride out short disruptions.
89. Offer quick-turn services (cushion re-stuffing, zipper replacements) during slow periods to keep cash flowing.
90. Adopt simple software for quoting and scheduling so you can scale without losing track of jobs.
91. Test new materials on low-risk jobs before rolling them out broadly.
92. Develop a contingency plan for sudden supplier outages with alternates and substitute materials.
93. Benchmark your pricing and lead times twice a year to stay competitive and profitable.

What Not to Do

94. Don’t promise turnaround you can’t meet; missed deadlines damage referrals more than lost bids.
95. Don’t cut into unknown cushions without confirming foam condition and discussing options with the customer.
96. Don’t accept customer-supplied fabric without inspecting for flaws, shrinkage risk, and adequate yardage.
97. Don’t skip PPE when using adhesives or cutting foam; short-term time savings aren’t worth long-term injury.
98. Don’t ignore pattern direction or repeat; mismatches are costly and obvious.
99. Don’t start work without a signed estimate, deposit, and clear scope; handshake deals invite disputes.
100. Don’t store finished pieces uncovered; dust and shop marks at pickup kill perceived quality.
101. Don’t underprice labor; fix low rates early or you’ll grow unprofitable.

Sources: SBA, SCORE, IRS, OSHA, EPA, FTC, CPSC, USPTO, Energy.gov, TRUiC, Step By Step Business, Newfoundr, Wolters Kluwer, Sailrite, Fabric Wholesale Direct, Start Up Donut