One of the ways we want to help you succeed in your career is to give you the opportunity to be your own boss. If you’ve been thinking about starting your own construction business, check out this Q&A where one of our training specialists answered a student’s questions.
Is there a book in print that covers business law in the construction industry?
Yes, I would recommend picking up the NASCLA Contractor Guide to Business, Law and Project Management. It is a great book to teach you about all things business in the contracting field.
Is an LLC (limited liability company) best for starting a family-owned business?
I definitely think you are on the right track with the LLC idea. In my opinion it is the best structure for a construction business. I would recommend that you work with a CPA or business lawyer to structure the company in a way that protects you as the license holder and the parties that will have ownership stake in the company.
Working with family can be difficult and as the license holder. As the license holder it becomes your responsibility to make sure that the customers you are under contract with have the best experience possible working with you. Also as the license holder you are responsible for every inch of every project. So setting up clearly defined responsibilities within the company – in writing – is the best way to keep issues from arising in the future.
Example Process for Operating an LLC*
1. Get personal license
2. Set up and license business entity
3. Attach personal license to business as qualified license holder
4. Create DBA’s (Doing Business As) for business expansion
If you have any questions about getting licensed or starting a business, click here to book personal one-on-one time with one of our training specialists!
*This process may be different in your state.