How to Start a General Contractor Business: Step-by-Step Guide
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 16
- 3 min read
Starting a general contractor business is a great opportunity for entrepreneurs who want to manage construction projects, coordinate subcontractors, and build a reputation in the residential or commercial construction industry. Whether you're overseeing home remodels, new builds, or commercial renovations, the right foundation is key to long-term success.
At Wexford Insurance, we specialize in contractor insurance and help general contractors protect their businesses with tailored coverage. In this guide, we’ll walk you through the essential steps to launch your general contracting business the right way.
1. Define Your Services and Target Market
Start by deciding what type of projects you’ll take on:
Residential construction (home builds, remodels, additions)
Commercial construction (offices, retail, tenant improvements)
Specialty projects (kitchens, bathrooms, roofing, etc.)
This helps you focus your marketing and licensing efforts.
2. Register Your Business and Choose a Legal Structure
Choose a business structure such as:
Sole proprietorship
Limited Liability Company (LLC)
Corporation
Then register your business name and apply for an Employer Identification Number (EIN).
🔗 Read More: Link to IRS EIN application .
3. Get Licensed and Bonded
Most states require general contractors to be licensed. You may need to:
Pass an exam
Show proof of experience
Submit financial statements
Obtain a contractor bond
4. Set Up Your Office and Tools
You’ll need:
A reliable work truck or van
Project management software
Estimating tools
Office space (even if home-based)
5. Build a Network of Subcontractors
As a general contractor, you’ll coordinate:
Electricians
Plumbers
HVAC technicians
Framers and finish carpenters
Vet subcontractors carefully and ensure they carry their own insurance.
6. Create a Professional Brand and Website
Your brand should reflect trust and professionalism. Build:
A logo and business cards
A mobile-friendly website with service pages
A portfolio of past work and testimonials
7. Market Your Business Locally and Online
Use a mix of:
Local SEO and directories
Social media (especially Facebook and Instagram)
Referrals from real estate agents, architects, and past clients
Market Your General Contractor Business with Contractor Back Office
Contractor Back Office helps general contractor businesses establish a professional brand by managing websites & SEO email & calendar management, and social media platforms. These services make it easier to showcase your services, share project photos, and engage with potential clients online—helping you build credibility and attract more contracts.
8. Get the Right Insurance Coverage
Insurance is essential to protect your business from risks like property damage, injuries, and lawsuits. At Wexford Insurance, we help general contractors secure:
General Liability Insurance – Covers third-party claims
Workers Compensation Insurance – Required if you have employees
Commercial Property Insurance – Covers your office or storage space
Commercial Auto Insurance – Protects your work vehicles
Equipment Insurance – Covers your tools and machinery
Final Thoughts
Starting a general contractor business takes planning, licensing, and the right protection. By following these steps and partnering with Wexford Insurance, you’ll be ready to build a business that’s safe, profitable, and built to last.
👉 Ready to protect your general contracting business?
Contact Wexford Insurance today for an expert guidance.
