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How to Start a Construction Business?

A complete guide for Register Construction Business in the USA
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Category : > New Business Setup
Posted On : Thu Jun 01st,2017

A complete guide for Register Construction Business in the USA

An overview of construction business in America


In recent years, the small construction business industry has remained on the top of the list. The increase in housing demand also boosted the real estate industry. Moreover, construction links up many other small businesses; real estate, contractors, and architects. If we talk about the top 10 industries in the United States, construction business has a fair ranking in this list and also expanding rapidly.


The Future of Commercial Construction


Whenever the industry expands, construction makes its space itself. According to the IBIS World, the growth of commercial construction in the next five years is visible. The demand of most commercial buildings, offices, and markets will bring more revenue to this industry.

Here in this article, you will go through the right consideration for the construction business you want to start.

Before starting a construction business, plan your business strategy that includes:


·         The kind of business

·         Investment

·         Incorporating and registering with the right government agencies

How to finance your construction business?

If you do not have sufficient saving or investment you can have access to traditional bank loans. Get access to other financing options such as business line of credit, community banks, or SBA loan program.


Apply for license and get bonded and insured


If you have a business license and your business is insured and bonded, you can win the trust of your client. It also protects you.


Why a business license and permit is important?


Most of the time general contracting or construction business requires a specific business license to operate the business.


How to get a construction business license?


Visit your State’s business license office to obtain appropriate license and permits to operate your construction business.


Why are surety bonds important to operating a construction business?


In order to operate your business legally, you are required construction bonds. It is a kind of pact signed with the third party who ensures the payment if his or her work not one under work obligations.


In which condition, business insurance is required?


Business insurance depends on the nature of the work. But in the construction business, you need the employees directly. You may require general liability or property and vehicle insurance.

How to familiar with construction industry regulations?


The construction industry is highly regulated from workplace safety standards to energy efficiency standards, you have to abide by these regulations. You better read the SBA government, industry guide for more information.


What are the health and safety procedures in starting a construction company?


The Occupational Safety and Health Act (OSHA) asks to provide a hazard-free construction space to the employees. For more information, read SBA workplace safety and health guide.

How to register your construction business with the state?


Ø  Choose the business structure

Ø  choose a name for your business

Ø  File the articles of the organization or corporation with the office of the state where you want to start your construction business to register a business name.

Ø  Apply for license and permits

Ø  Get worker’s/property insurance


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