How to start a Contractor Company

Contractor companies usually work for general contractors on large and small construction projects. There are many types of contractor companies, including drywall, plumbing, electrical, cement, carpentry, and carpentry finish contractors. The general contractor bids for the complete work and offers contractors parties to the project. You need all these types of contractors to complete a construction project.


  1. Develop a business plan for the type of work contract you apply for the business you will be dedicated to. You can offer residential, commercial or both services. Part of any good business plan is to consult a CPA to help you develop financial and budget plans. Consult with a lawyer to form your business. You can structure it as a corporation, an individual company or a limited liability company (LLC). Corporate Business Training (C-Corp & S-Corp) protects your personal assets from financial risks.
  2. Get a company name accepted by the local government. Registering it will cost you $ 10 to $ 25. Determine if you need a business license for your state, city and county. Because you will be providing work on other people’s property, you will need to buy insurance and civil liability unions. This will protect your business from litigation and economic damages up to the limit of the insurance policy. This type of insurance is called general liability insurance (GL). If a job is not done satisfactorily, the insurance will pay for any damage caused by your company.
  3. Buy the tools you need. Take inventory of the ones you do not have and buy them before your first job. The types of tools you need depend on the type of business you open. A carpentry contractor needs table saws, miter saws, hammers, tool belts, skill saws, circular saws and more. Plumbing contractors need pipe cutters, welding equipment, shovels, excavation equipment and more.
  4. Most people who start a contractor company have worked in the construction business before starting their own businesses. Approach a group of colleagues and general contractors you know. Let them know that you are now hiring and available to accept projects within your area of ‚Äč‚Äčexpertise. Each contact can be important. A contact may end up as your employee, general contractor or future contact.
  5. It develops a resource of the best professionals of the industry. Whatever your specialty, you need talented employees. The better your staff, the better the final product. Pay your best workers well. This will keep them working for you. One of the biggest mistakes a new contractor makes is to bid less to get the project. However, you should not bid for a little, you must do it smart. Be patient and wait for the right jobs. This will keep your business open and safe from tendering a job below your cost.
  6. Develop an advertising campaign that is effective and cheap. Press releases are free and most newspapers are happy to post new business news in the local area. Develop a website that describes your services, rates, insurance and guarantees, and contact information. Add your company name and a short list of services next to your contractor vehicles. Announce at the local and all other supply stores for builders, sawmills and hardware stores.