Things to think about when starting a contracting business

At the Roberts Law Firm PC in Georgia, we believe in entrepreneurs like you. We also know, however, that starting a new business is not only exciting, but also complicated and fraught with possible perils. The decisions you make before ever opening your doors for business can have positive – or negative – effects on your company for years to come. That is why is it so important that you think carefully before making any decision.

If you are thinking about starting a contracting business, Home Advisor explains that the first thing you must do is decide which business structure best meets your needs. Your basic choices include the following:

  • Sole proprietorship
  • Partnership
  • Corporation
  • Limited liability company

Each business type has its own requirements regarding what you need to do and how you need to do it, both in terms of original set-up and how much paperwork you must do thereafter. Each type also has its own income tax requirements regarding who actually pays the taxes, you and/or your company. Finally, some business types, such as a corporation or a limited liability company, protect your personal assets better than others in the event someone sues your company.


Your contracting business will need several kinds of insurance to shield it from unforeseen events and losses. Typically, business owners take out the following kinds of insurance policies:

  • General liability
  • Vehicle liability
  • Employers’ liability
  • Workers’ compensation

Since your company will do contracting work, you also may wish to explore the benefits of purchasing a contractor’s policy as well as a business owner’s policy.

Licenses and permits

No matter where your business operates in Georgia, the city will require you to have a business license and possibly a surety bond. Each municipality in which you do work will require you to obtain a work permit specific to the type of work you will be doing for your customer, especially if it involves remodeling or rehabbing. The county where your company is located and the counties in which you do work for your customers may have their own license and permit requirements, so this is something else you need to thoroughly check out before starting any project.

For more information on this subject, please visit this page on our website. 


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The Roberts Law Firm, P.C.
604 Green Street
Gainesville, GA 30501

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