How to Set Up a Small Contractor Business

A small contracting business can be set up in a matter of days.

Small contractors are always in demand because when the housing market is on an upswing, homeowners use the small contractor's services to make their home more valuable and when the housing market is on a downswing, homeowners elect to make improvements, rather than purchase another home, according to Entrepreneur.com. In the state of Texas, a person wanting to set up business as a general contractor does not have to be licensed, but plumbers, electricians, and Heating Ventilation Air Conditioning installers and service providers do.

Instructions

1. Create and file your Articles of Incorporation. Use an online legal document drafting service like Legal Docs.com or Legal Zoom.com. You will need to create Articles of Incorporation to protect your personal assets from liability should the liability claims occur. File your Articles of Incorporation with your state's department of business and regulation or its division of corporations. Filing fees range from state to state, according to Start Biz Here.com, Texas charges $335, while Florida charges $115.

2. Register your business name with the appropriate government agency. Yahoo Small Business reports that states differ in fictitious name or Doing Business As registration. For instance, in the state of Texas, you must register your contracting business' fictitious name in the county where you base your company, while in the state of Florida, fictitious name registration is done at the state level.

3. Choose a financing option for equipment. If necessary, you will need to seek a small business loan to purchase your contract business' equipment, such as a tool trailer and tools. Go to the Small Business Administration's website and look for micro loans. The SBA states micro loans are under $35,000 and are payable over a period of six years, usually requiring the borrower to sign a personal guarantee and put up collateral.

4. Market your small contracting business. Print flyers and distribute them in mall, church, and grocery store parking lots. Go to home improvement shows and hand out business cards. Advertise on social networking sites such as Facebook and MySpace. Take advantage of the Internet and create a website for your small contracting business using templates supplied by website hosting providers such as GoDaddy.com.

References

• SBA: Micro Loan Program
• Entrepreneur: Starting a Business as a Remodeling Contractor
• Yahoo Small Business: Minimal Requirements for Working as an Independent Contractor
• Start Biz Here: Incorporate a business in Texas
• Start Biz Here: Incorporate a business in Florida