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What should you consider when starting a contracting business?

If you are a Florida resident who enjoys remodeling and renovating homes, perhaps even building from scratch, you may be considering becoming a contractor and going into business for yourself. While this is an exciting prospect, getting your new business up and running can be daunting.

As Home Advisor explains, there are many things you need to consider when establishing a contracting business. One of the most important is the type of business structure that is best for you. The answer to this all-important question depends on several factors, including the following:

  • What type of contracting business you want to have
  • Whether you wish to be the sole owner or have co-owners
  • How many employees you foresee having

Many first-time business owners choose to have a sole proprietorship, the simplest of all business entities. However, you would do well to consider other business forms as well, especially if you foresee your business growing rapidly and expanding its services and/or the geographical area in which it operates. In these situations, a partnership, corporation or limited liability company may be a better choice. Your choice of business structure impacts not only the type of paperwork you need to do in order to start your business, but also how its income will be distributed and how you will pay its taxes.

Equipment and tools

Every contractor needs to have the proper tools and equipment to perform the work he or she contracts to do for customers. What precise equipment and tools you will need depends on what types of jobs you intend to perform and how many jobs your new company will be undertaking at the same time. Important questions to be answered include the following:

  • How many trucks do I need?
  • What types of tools do I need and how many of each?
  • What types of equipment do I need and how many of each?
  • How will I finance the acquisition of my needed tools and equipment?

A contracting company can be a very lucrative business, providing you with never-ending entrepreneurial opportunities and a comfortable living. Getting it up and running is your first step on a long road of achievement. This information is provided for educational purposes and should not be interpreted as legal advice.

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