How to Start Your
Contractor Business
From LLC paperwork to your first paying customer — everything you need to launch your contracting business, explained simply. No fluff, no upsells, just the steps that matter.
LLC SETUP
Form Your LLC in 5 Steps
Choose Your Business Name
Search your state's Secretary of State database to confirm your name is available. Make it memorable and local — include your trade and city for better Google ranking (e.g., "Johnson Pressure Washing of Atlanta").
File Articles of Organization
File online with your state's Secretary of State. Filing fees range from $50 to $500 depending on the state. Most states process within 1–2 business weeks.
Get Your EIN from the IRS
Free and instant at IRS.gov. You'll need this number for your bank account, taxes, and hiring employees. The whole process takes about 10 minutes online.
Create an Operating Agreement
Not legally required in every state, but it documents ownership splits and protects your personal assets. You can find free templates online — keep it simple.
Get Required Business Licenses
Check your state and local government websites. General contractors often need a local license. Electricians, plumbers, and HVAC techs typically need a state-issued trade license.
BUSINESS BANKING
Open Your Business Bank Account
Why You Need a Separate Account
Mixing personal and business money can pierce your LLC's liability protection — meaning you could be personally liable for business debts. A separate account keeps your assets protected and makes tax season far easier.
What You Need to Open an Account
Your EIN (from the IRS), your filed Articles of Organization, a government-issued photo ID, and your business address. Some banks also want to see your operating agreement.
Best Banks for New Contractors
Chase Business Complete ($0 minimum, fee waived with $2k balance), Novo (free, no minimums, fully online), and BlueVine (free, good built-in invoicing). All offer online signup in under 20 minutes.
Checking vs. Savings
Start with a business checking account — you'll use it for day-to-day expenses, receiving payments, and paying subcontractors. Add a savings account once you've built up 3+ months of expenses as a cash reserve.
INSURANCE & LICENSING
Protect Your Business & Stay Legal
General Liability Insurance
Covers property damage and bodily injury claims. Expect $40–$70/month. Most commercial clients will require proof of insurance before they hire you — get this before your first job.
Contractor's License
Requirements vary by state and trade. Electricians, plumbers, and HVAC techs typically need a state-issued license. Check your state licensing board website for requirements and exam details.
Workers' Compensation
Required in most states if you have employees. Even as a solo operator, consider a policy — it covers your own on-the-job injuries and some clients require it regardless of your employee count.
MARKETING
Get Your First Customers
Claim Your Google Business Profile
Free and essential. It puts you on Google Maps and the local 3-pack — where most contractors land their first jobs. Fill out every section completely: services, hours, photos, service area.
Get a Simple Website
Even a one-page site with your services, service area, and phone number helps you rank on Google and looks professional when customers look you up. Starting at $250 — see the bottom of this page.
Collect Google Reviews
Ask every happy customer to leave a review. Reviews are the #1 local ranking factor and build instant trust with new prospects who are comparing you to competitors.
Start with Word of Mouth
Tell everyone you know. Post on your personal Facebook. Join local community groups. Your first 5–10 jobs will come from people who already trust you — leverage that network before spending on ads.
STATE-BY-STATE
Find Your Secretary of State
Click your state to file your LLC directly with the Secretary of State. Don't see your state? Search "[your state] secretary of state business filing" on Google.
KEEP READING
Marketing Strategy for New Contractors
FAQ
Starting a Business — FAQ
How much does it cost to start a contractor LLC?
Filing fees range from $50 to $500 depending on your state. You'll also need an EIN (free from the IRS) and potentially business licenses ($50–$200). Total startup cost is typically $150–$800.
Do I need an LLC before I can get a website?
No — you can get a website at any stage. Many contractors start with a simple one-page site before they even file their LLC, so they have a professional presence when bidding on jobs. A basic site starts at $250.
How long does LLC setup take?
Filing your Articles of Organization online takes about 30 minutes. Most states process it within 1–2 weeks. Getting your EIN from the IRS is instant online. Opening a business bank account takes about 20–30 minutes.
Do I need a contractor's license to operate?
It depends on your state and trade. Electricians, plumbers, and HVAC techs almost always need a state-issued trade license. General contractors and handymen may only need a local business license. Check your state licensing board website.
Can Vantex help me set up my LLC?
We focus on getting your business online with a professional website. But this guide walks you through every step of the LLC setup process, and we can point you to the right resources for your state.
READY TO GET ONLINE?
GET YOUR BUSINESS
ONLINE FOR $250.
One-page website with contact form, basic SEO, and click-to-call. Built in 48 hours. We'll help you look professional from day one.