To start a contractor business you need five things in order: the right license for your state and trade, general liability insurance, a registered business (usually an LLC), clear pricing, and a way to get found and quote jobs. Most people start for $2,000–$10,000 once license fees, a bond, insurance, and basic tools are covered. The legal steps come first; the marketing is what turns it into a business instead of a side gig.
We run our own home-service companies and have set up the boring paperwork side more than once. This is the order we would follow today, with an honest note on what you can put off until you have paying work.
Check your state's license rules
Most states require a contractor license above a dollar threshold per job. Some license by trade, some statewide, a few by city. Your state contractor board is the source of truth — start there before you spend on anything else.
Register the business and get an EIN
An LLC separates your personal assets from the business and is cheap to file. Get a free EIN from the IRS, then open a business bank account so income and expenses never mix.
Get insured and bonded
General liability is non-negotiable, and many states require a surety bond to license. Add workers' comp the day you hire. Customers and GCs will ask for a certificate before they let you on site.
Set pricing and a contract template
Know your hourly cost, your material markup, and your minimum job. Use a written contract on every job — scope, price, payment schedule, and change orders — so you get paid and avoid disputes.
Get found and catch the leads
A Google Business Profile, steady reviews, and a simple site that ranks for "[trade] contractor [town]." Then make sure every call and form gets answered — most new contractors lose early jobs to a missed call, not a missing skill.
State license fees, exam costs if required, LLC filing, and a surety bond. Wide range because state rules differ a lot.
General liability for a small contractor, paid annually or monthly. Higher-risk trades and bigger payrolls cost more.
The biggest swing. If you have your trade tools and a truck, this is small. If not, it's the largest line.
A profile is free; a site with AI lead capture starts at $249/mo with us, and you own it. You can start with the free profile and add the site once jobs are coming in.
Plenty of "must-haves" can wait until you have paying work. Hold off on:
Spend first on the things that are legally required, then on the things that catch leads. Everything else is a "once it's working" purchase.
The website and "getting found" part is where we help. A hand-built contractor site with AI lead capture is $249/mo; add the SEO content engine and attribution at $597/mo to rank for local searches. Free working demo in 48 hours, month-to-month, and you own the site and domain. If you do not have paying work yet, start with a free Google Business Profile — we will tell you when a site is worth it.
Keep going: contractor license requirements, a contractor contract template, contractor website design, SEO for contractors, and how to get your first clients.
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A state license for your trade, liability insurance, a registered LLC, an EIN, and a way to get found and quote. Rules and thresholds vary by state.
Often $2,000–$10,000 once you add license fees, a bond, insurance, tools, and a simple site. Tools and a vehicle are the biggest swing.
In most states, yes, above a per-job dollar threshold. Check your state contractor board before you bid work.
Network first, then a Google Business Profile and reviews, then a site that ranks locally. Referrals start it; getting found makes it repeatable.
Send your company name, trade, and metro — we will build a working demo within 48 hours. Free, no card, no commitment.
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