General contractor business laws differ from state to state.
With experience and state licensing, you can start a general contractor business and put your talent and knowledge to work. General contractors provide construction, property improvement and repair services to homes and businesses, and often specialize in one or more disciplines. General contractors plan, manage and oversee projects using employees or sub-contractors. Each state has specific licensing requirements for contracting businesses, but the protocol for starting the business is fairly consistent throughout the country.
Instructions
1. Contact your state's licensing board to inquire about licenses, certifications and insurance requirements for your contracting business and file the necessary forms and fees. You may be required to take a test or produce documentation of past experience or formal education in your contracting discipline.
2. Determine the operating structure of your contracting business: sole proprietor, limited liability company, partnership or corporation and file the applicable forms with your secretary of state.
3. Visit the IRS website and apply for an employer identification number (EIN). Even if you won't hire employees, this number serves as your business' federal tax identification number and is free of charge.
4. File with your state's department of revenue and obtain a tax registration or sales tax number for your contracting business. You will be required to collect sales tax and pay it to the state on applicable product or material sales and some contracting services as required by your state's tax law.
5. Purchase general or contractor's liability and vehicle insurance from your insurance agency. You will also need property insurance and a surety bond. Your insurance agent will provide advice as to the types of contractor's insurance required by your state or recommended by the general contracting industry.
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