So if you\u2019re thinking about starting your own business, here are a few questions that you should be able to answer before you make the big move:<\/p>\n
- \n
- What services or products will this business offer?<\/li>\n
- Who is my ideal client or project?<\/li>\n
- Is there much competition for those customers? How will I differentiate my business?<\/li>\n
- What skills do I bring to the business and what do I need to learn? What knowledge gaps would I need to fill by bringing in others?<\/li>\n
- Do I have enough financial resources to quit my current work to focus solely on starting a new business, or do I need to start this as a side hustle?<\/li>\n
- Assuming that you may bring on employees or collaborate with trade partners at some point, what does it mean to you to be a great employer?<\/li>\n
- How much start-up capital is required to get up and \u00adrunning?<\/li>\n<\/ul>\n
If you can answer these questions well, you are headed in the right direction to become a business owner, but there are a few logistics you\u2019ll need to take care of to make sure you\u2019re operating legally. The details may vary from state to state, but here are ten steps that any new business will likely need to follow.<\/p>\n
Pick a Name<\/span><\/h2>\n
This will be required to register the business and can be a stumbling block for some people. You can change it later, but it\u2019s a pain, so try to find something you like and stick with it. Once you\u2019ve got a few options, check with the United States Patent and Trademark Office to see if the name is trademarked, check with your secretary of state to see if it\u2019s already registered in your state, and check if a domain name is available so you can use the URL for your website. And here\u2019s an often-overlooked tip: If you think there\u2019s a possibility that you might want to sell the business down the road, don\u2019t name it after yourself.<\/p>\n
Register Your Business<\/span><\/h2>\n
You\u2019ll need to decide what kind of legal entity this business will have. \u201cSole proprietor\u201d is the default if you don\u2019t actively register some other way and have only one owner. However, creating an LLC (limited liability corporation) will give you additional protection that prevents you from being on the hook for the business\u2019s liabilities.<\/p>\n
Other options include registering as a C corporation (good for larger businesses that plan to go public at some point and sell shares), a benefit corporation (good for mission-driven businesses), or a cooperative corporation (the business is owned and managed by the workers).<\/p>\n
Once you\u2019ve decided on the legal entity, you can register with the IRS to receive an EIN (employer identification number), which you\u2019ll need to set up everything else. The next step is to register your business in the state where you plan to operate, usually through the secretary of state\u2019s office. From there, the state can point you to other registrations or licenses required for your trade or profession.<\/p>\n
Set Up Accounts<\/span><\/h2>\n
With your new EIN in hand, you\u2019ll be able to set up accounts with the various state-level agencies or departments to whom you\u2019ll need to pay taxes. This varies from state to state, but most likely you\u2019ll need an account with the state\u2019s department of revenue or taxes for business taxes, and if you have employees, you\u2019ll need an account with the state\u2019s department of labor for unemployment.<\/p>\n
The secretary of state\u2019s office or city\u2019s website has a page with resources for new businesses that can point you to the local requirements. You\u2019ll also want to open a new bank account and credit card for your business to ensure that you\u2019re not co-mingling personal and business funds.<\/p>\n
Get Insurance<\/span><\/h2>\n
This is not the most fun part of starting a business, but an important one: You\u2019ll need to make sure you\u2019re protected with a variety of insurance policies. The most basic include general liability, and if you have employees, worker\u2019s compensation. Depending on your business type and assets, you may also need property insurance to cover your business location, professional liability (sometimes referred to as errors and omissions, or E&O), auto insurance to cover company vehicles, or builder\u2019s risk insurance to cover projects while they are under construction.<\/p>\n
Get Licensed<\/span><\/h2>\n
Depending on your trade and the state where you\u2019re located, different types of licenses may be required to operate your business, including everything from a construction supervisor license to a refrigeration license for installing heat pumps. Requirements vary from state to state and change frequently. Your local secretary of state\u2019s office is a good resource for figuring out what licenses you\u2019ll need. Many licenses also come with annual continuing education requirements.<\/p>\n
Set Up Your Books<\/span><\/h2>\n
Putting together an annual operating budget with projected revenue and expenses can help you anticipate what it will cost to run the business, and figure out what you need to charge to be profitable. You\u2019ll need a system for tracking revenue and expenses\u2014ideally something more than a shoebox full of receipts that you bring to your tax preparer at the end of the year.<\/p>\n
Most small businesses use accounting software like QuickBooks, Sage, or Xero. Depending on your familiarity with bookkeeping, you may want to hire a bookkeeper to set up these systems for you. It\u2019s worth spending the time and money to get it set up right at the beginning, versus having to go back later and clean things up.<\/p>\n
![\"\"](\"https:\/\/www.finehomebuilding.com\/app\/uploads\/2025\/01\/012329-building-business2.jpg\")
Photo courtesy of Fernando Pag\u00e9s Ruiz.<\/figcaption><\/figure>\n Build Your Team<\/span><\/h2>\n
You\u2019ll likely be working with other people in your business, whether they are employees on payroll or trade partners with whom you subcontract. It\u2019s important to understand the legal distinctions between the two as it affects the types of insurance coverage and documentation you\u2019ll need (W-4s and I-9s for employees, W-9s and COIs for trade partners). To pay your employees, you\u2019ll need a payroll service to track all the required taxes and withholdings.<\/p>\n
Find Professional Expertise<\/span><\/h2>\n
Whether you\u2019re a sole proprietor or anticipate hiring a large crew, as a business owner you\u2019ll want a variety of experts on your team early on to advise you as you\u2019re getting started. The most common would be a lawyer (for help with business setup and drafting contracts) and an accountant (to set up your books, prepare your taxes, and provide financial advice).<\/p>\n
If you\u2019re new to the business side of things, you may want to bring on a bookkeeper, as mentioned above\u2014either freelance or on staff\u2014to make sure you have a strong grasp of your company\u2019s financials. Not sure where to find these folks? Ask your friends, neighbors, and colleagues if they have professionals they can recommend.<\/p>\n
Get Your Name Out There<\/span><\/h2>\n
Once you\u2019re officially in business, the next step is to find business. There are many potential strategies for mar-keting your business, but some of the basics I\u2019d do right away include launching a website for your business, setting up a business email account separate from your personal email, and creating a Google Business listing (which is free and allows people to find your business through a Google search or Google Maps). Most early business comes from word of mouth, including neighbors, friends, and family, so make sure to let folks know about your new venture and the services you\u2019re offering.<\/p>\n
Slow Down to Go Fast<\/span><\/h2>\n
Running a small business is a lot of work, hands down. It\u2019s easy to get caught up in the hamster wheel, especially when you\u2019re scrambling to line up work to keep your crew busy. As you launch into this new business, set one or two realistic and manageable goals for your first year, and block time in your calendar to pause and prioritize, reflecting on where best to invest your time and money in order to reach those goals.<\/p>\n
Taking the leap to go out on your own and start a new business can be exciting and completely terrifying at the same time. There will be highs and there will be lows, but if you\u2019ve got a solid plan and the entrepreneurial drive, being your own boss can be freeing and rewarding.<\/p>\n
\u2014 Kate Stephenson is co-founder of HELM Construction Solutions, a planet- and people-forward firm with expertise in construction, management, leadership, and training.<\/em><\/p>\n
From Fine Homebuilding #<\/em>329<\/p>\n
RELATED STORIES<\/strong><\/span><\/p>\n
- \n
- Budgeting Is Helpful. Estimating, Not So Much.<\/a><\/strong><\/li>\n
- Best Practices for Home-Building Project Communication<\/a><\/strong><\/li>\n
- Understanding the Business Side of Construction<\/a><\/strong><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"
If you\u2019re a designer, carpenter, or other trade professional and are feeling the itch to start your own business, you\u2019re not alone. It\u2019s a fairly common path in the building […]<\/p>\n","protected":false},"author":128,"featured_media":541932,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"MSN_Categories":"Uncategorized","MSN_Publish_Option":false,"MSN_Is_Local_News":false,"MSN_Is_AIAC_Included":"Empty","MSN_Location":"[]","MSN_Add_Feature_Img_On_Top_Of_Post":false,"MSN_Has_Custom_Author":false,"MSN_Custom_Author":"","MSN_Has_Custom_Canonical_Url":false,"MSN_Custom_Canonical_Url":"","footnotes":""},"categories":[34],"tags":[2535,984,1773],"class_list":["post-541260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-building-business","tag-business","tag-career","section-magazine","channel-how-to"],"acf":[],"yoast_head":"\n
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Best Practices for Home-Building Project Communication<\/a><\/strong><\/li>\n
- Budgeting Is Helpful. Estimating, Not So Much.<\/a><\/strong><\/li>\n