How to Start a Construction Business In California
There are a number of steps to take to start a construction business in the state of California. You must do your own thorough research, as laws change regularly. Here are some steps you may have to take (not necessarily in order) to start your construction company, along with links to more information.
Getting started– California’s website about how to start a business in California is found here: Start A Business
-Register your construction business name.
Find out more about registering a fictitious name here: California Business Name Availability . Your fictitious name must be registered with your county clerk.
If you need help selecting a name for your construction business: Choosing a Construction Company Name
-Select your business structure.
Sole-proprietor, LLC, Partnership, Corporation, etc. Find out more here: California Business Entities
-Register your construction business.
You can register your business with the state of California here: Register Your Business Entity
-Open a Business Checking Account.
You will need to open a separate bank account for your construction company with your new business name.
-Find out about taxes and hire an accountant.
You may want to file your own taxes if you are a small company. As you grow, it will be easier to have an accountant do the work. More info about taxes here: http://www.taxes.ca.gov/ and http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Starting-a-Business
-Get Construction Software
Construction software will streamline your business before you even start, giving you visibility and control over all your leads, sales, jobs, and tasks from a single program to get your company on the fast track toward growth.
You’ll also be able to create estimates, place material orders, automate the boring (but necessary) stuff, empowering you and your team to finish jobs on time and on budget. Try JobNimbus for Free!
-Get Liability Insurance
We work with ContractorsLiability.com because they’re the one-stop-shop for General Liability insurance and are able to get online quotes in all 50 states. Plus, their expertise means they’re fast when it comes to getting the right bond and liability coverage. Contractors need to win the job and stay protected at an affordable price. Learn more >
More about liability insurance here: Contractor Liability Insurance
-Worker’s Compensation.
You will need Worker’s Compensation if you have any employees. Find out more>
-Register as a Contractor.
To become a construction contractor, you must apply for a contractor’s license in the state of California. The registration application is found here: http://www.cslb.ca.gov/About_Us/Library/Forms_And_Applications.aspx .
-Get Health Insurance.
Since you will be self-employed, you will need your own health insurance. If you have employees, you will need a plan that will include their health needs also.
-City License.
You may be required to obtain a license to operate your construction business in a particular locale, whether you are a resident, or not.
-Permits.
Depending on the locale, you may need to apply for permits before commencing certain types of roofing jobs.
-Building Code and Inspections.
You must be aware of building codes for particular jobs, and may be subject to inspections.
-OSHA.
Depending on how many employees you have, you may need to follow OSHA regulations. http://www.osha.gov
