The first step in starting a construction company is to choose the right business entity. Whether you choose to form an LLC or corporation, this action establishes your company as a legal business entity and helps protect your personal assets from business liabilities.
The business name you choose for your construction company can determine your strategy as a contractor. Some companies go general, taking on any job that comes their way; other businesses specialize in a particular niche and limit their scope of work to a narrow segment where they have an advantage.
A business plan will provide you with an overall strategy for your construction company and help you set milestones and goals. It will also include a financial analysis and industry analysis.
The next step is to get all of your business licenses and permits in order. These vary depending on your state and location, as well as the type of construction you perform.
In addition to these, you may need to purchase workers' compensation insurance if you hire employees to do your work.
Purchasing the necessary construction equipment can also be a large expense, so be sure to set aside a good amount of money for this before you start your company.
Insurance for your construction business is important, especially since the nature of this business makes it highly regulated. You can find specific construction insurance policies to cover your property, equipment, and your employees, as well as general liability coverage for accidents that occur on your premises or at work sites.
