How to Start a Contracting Company

A contracting company usually bids on work for general contractors for all sorts of projects. Whether you specialize in concrete, electrical, drywall, painting, or carpentry, there are all sorts of contracting company options. The general contractor will bid on the entire job and the subcontractors will finish the specific projects. 1. Create a business plan for your chosen kind of contracting work. Decide if you want to focus on residential, commercial, or both. Consult an accountant to help you figure out your operating costs. Enlist the help of an attorney to formalize your business name and structure your company. You can chose to be a sole proprietor, corporation, Limited Liability Company (LLC), or others. Ask their advice, or research online to choose the best option for you. 2. Register your business name with your local government. Determine if you need a business license for your city, county, and/or state. Buy liability insurance and bonding, General Liability (GL). This will help protect you against any legal action that could be taken against you. 3. Buy the tools necessary for the job. Create an inventory list to keep track of your tools. 4. Talk to people you know and tell them about your new business. Word of mouth is one of the most popular ways for contractors to get work. 5. Hire high quality skilled workers. The better they are, the better your finished product will be, thus bringing you more work in the future. 6. Bid smartly for jobs. Being the lowest bid will not always get you the contract. Don't be disappointed if you don't get every contract. Wait for the job that's best suited for you. 7. Create a simple website that lists your contact information, licensing status, bonding and insurance, and photos of past jobs.