How to start a Construction Business in the US


Construction, a multi-billion dollar industry in the United States. The sector is growing at a steady pace, which means that there are great opportunities for new contractors to get involved. If you have experience in construction and want to start your own company, here are some things you should know before getting started:

Keep an Eye on the Market

  • The market is constantly changing and can be affected by a number of factors, from weather to the economy to availability of labor and materials.
  • Have a good idea of how much work you’re going to need in order to keep your team busy. If you don’t know what jobs will be available over the next few months, it’s hard for clients and contractors to trust that they’re hiring the right amount of staff right now. This can lead them both into trouble later on.

Research the Licensing Requirements

There are a number of licenses and permits you’ll need in order to operate a construction business in the United States. They vary from state to state, but here are some examples:

  • A contractor’s license, which allows you to bid on and perform government-funded projects. The fee varies by state and by project size; typically it costs less than $100 annually for small businesses.
  • A sales tax permit if your business sells products or services that will be taxed by the state (for example, if you plan on installing solar panels). You can apply online through the National Association of State Sales Tax Administrators’ website; they will send instructions on how to submit an application once they receive all necessary information from you.
  • A general liability insurance policy is required for any employer who hires workers; this type of insurance covers both workers’ compensation claims as well as paying out losses resulting from accidents at work sites.

Get the Necessary Equipment

In order to get started with your business, you need the proper equipment. Here are some things that you will want to start out with:

  • Power tools and hand tools.
  • A van or truck (for moving materials).
  • Ladders and scaffolding.

With this equipment, you’ll be able to handle most jobs that come your way. If you don’t have enough money to buy everything listed above at once, consider leasing instead of buying. Leasing is like renting but it’s paid out over time rather than all at once. That can make it easier for someone just starting out in business because they won’t be responsible for paying back all their expenses at once when they start their new venture.

Determine your Company’s Legal Structure

If you’re starting a business in the United States, it’s important that you choose the right type of entity to organize your business activity. Sole proprietorship, partnership, LLC and corporation are the most common structures are. Each has its own advantages and disadvantages:

  • Sole proprietorship is simple to set up but offers little protection from liability should something go wrong with a project or client.
  • Partnerships offer limited liability protection similar to that of a corporation (and also require less paperwork) but may be more complicated than other forms.
  • LLCs provide the same level of asset protection as corporations without the added paperwork burden and finally—for those who want their construction company to have some cachet—there are always C-corporations (or “regular” corporations). These entities combine many benefits such as lower tax rates and limited liability protection with complex compliance requirements for corporations

Find a Good Location for the Business

After you’ve identified what kind of construction business you want to start, it’s time to find a good location for your business. You may want to look for a building or commercial property in an area that has a lot of potential customers for your services.

Finding the right location is important because it will help you attract more customers and improve your chances of success as a business owner. The most important thing to consider when looking for a location is whether or not there are enough people who need your services nearby that they’ll be able to visit often enough (or even at all) if they live far away from where their homes are located within town limits.

Market your Business Effectively

In order to build a successful business, you need to get your name out there. You shouldn’t expect marketing to be a one-time thing; it’s important that you develop a long-term strategy for reaching potential clients and building relationships with them. Your brand should be memorable and instantly recognizable in order for people to remember how much they love working with you.

When it comes down to it, marketing is not just about advertising; rather, it’s about making yourself visible within your industry so that customers can find you when they’re ready. It’s also important that you nurture these relationships over time by providing excellent customer service and sticking around even if things aren’t going as well as planned on any given day.


Starting a construction business can be challenging, but it can also be very rewarding if you have what it takes to see it through. As we’ve seen from the examples above, there are many things that need to be taken into account when starting your own construction company. The most important thing is to make sure that you do your research before jumping into this new venture.

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