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Build Your Foundation

The construction business is so complex that an entire area of law has developed known as Construction Law. While it may vary from state to state, you need to be familiar with your state’s Construction Law. Starting your own construction business can get complicated and you’ll most likely need a Construction Law attorney on staff, or at least on retainer. Feel free to use our Ask a Lawyer service to get some guidance on this.

Another foundational aspect in starting your own construction business will be selecting the right legal structure. There are different ways to structure a business and you’ll need to decide whether you’ll use a Sole Proprietorship, a Corporation, a Limited Liability Company, or a Partnership.

The simplest business form is the Sole Proprietorship. This form provides no liability protection so it is probably not a good choice for a construction business.

incorporating as a Corporation means that you are creating a business entity that is separate from you, with its own name and tax ID number. One or more persons can form a Corporation, and you will be a shareholder in the corporation. This is ideal if you have other investors who want to go into business with you.

A Limited Liability Company (LLC) is a hybrid of a Partnership and a Corporation, offering more liability protection than traditional limited or general partnerships. Each state has slightly different requirements for LLCs, so it is best if you consult with a knowledgeable professional.

Before you lay down the foundation of your construction business, you’ll want to know the enforced building code in your area of business and check with your state, county, and city to see if they require a contractor’s license.

Put it in Writing

Once you’ve taken the recommended steps above, you will have a legally sound foundation to begin your business. You can now start building your business by creating the proper paperwork to cover every aspect of the business. You’ll need many professionally drafted legal documents, but at the core, you’ll need contracts that are legally accurate for your state. Whether you need a Service Contract or a Construction Contract, you can build momentum for your business by using our online service to generate these important agreements.

Before you know it, you’ll be ready to open your construction business and become your own boss. Besides, who else, if not you, will build your future for you?

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.


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