How to Start a Construction Business

By Lanee’ Blunt

Start your own construction business--

Starting a construction company can be a profitable business if you have experience and can fix or remodel residential or commercial properties. You must understand contract documentation and must know your area of expertise, for example utilities, heavy grading, and site development. You can go to school for construction management or you can learn from experience, or you can start with another firm as an intern with 3 or more years experience before starting your own company.

You must set up your business as a legal entity. Decide which form of ownership is best for your particular business: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, or S corporation.

Apply for an employee identification number (EIN) with the federal government. Fill-out the necessary forms and send them back to the federal government and they will return it to you with your EIN number.

Get the licenses and permits that you need to run your business. Most small businesses will need a general business license or specific operating permits from your state and local government. Get insurance for your business to insure you and your company against claims of personal injury and property damage.

Draw up a contract for your company to use for clients. Define the scope of work, payment, and work schedule. Do not rely on a verbal contract and make sure that you get everything in writing before you begin.


Small Business BC: Considerations for Starting Your Construction Company; Candice Macalino; 2010

Entrepreneur; Starting a Business as a Remodeling Contractor; Paul and Sarah Edwards; 2004


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