Categories: Advice

Starting a Business in General Contracting

We’re onto our next ‘B’ in our “ABCs of Small Business Industries” installment! Today’s ‘B’ is for builders (or, general contracting)! If you’ve dreamed of construction since you were organizing your building blocks as a young child, now might just be the perfect time for you to make your move. Not sure where to start? We’ll help you out.

So where do you start?

First things first, you need to be aware of all the necessary licenses, permits, insurance, and bonds needed that are specific to the general contracting industry. Luckily, as with most things small business, the SBA has your back. You’ll learn of all the licenses specific to construction, like a tradesman license if you’re going into the electrical, plumbing, HVAC, or gas fitting fields. Surety bonds are another legal necessity. As the SBA website will tell you, “You arrange for a surety bond from a third part who promises to pay your client if you do not fulfill your work obligations under a contract. Depending on which exact sector of construction you go into, you’ll need specific insurance as well. Not only will you need several types of business insurance, but you’ll additionally most likely need vehicle and property insurance.

Which structure best suits the building/general contractors industry?

So once you have all the permits squared away, it’s time to think about how you want to go about filing your building business. Because of the liability protection, issue shares, stock options available, and the fact that only salaries are subject to taxation, many contractors opt for filing as a corporation. Of course you can file your business with any entity you like, but forming a corporation is common for those in the general contracting industry.

How stable is the industry right now?

Growing and expected to keep doing so! IBISWorld predicted a few years ago a steady rise in the value of the construction industry. The industry has lived up to the prediction and will, hopefully, only continue to grow!

Are you ready to file the building business of your dreams? Give us a call at 1-877-692-6772 or leave a comment below, and we’ll get you started and help you out along the way!

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.