Every house, building, and infrastructure that you see wouldn’t exist at all without a construction firm responsible for building it. Because of that very obvious fact, you’ve decided to establish a construction firm. Like any other business in existence, your construction firm has to abide by the rules laid out by the law. We offer these important legal considerations for you to take note of when starting up a construction firm.
1.) The name of your construction firm should be distinct.
You may have thought of a catchy name for your construction firm in the hopes of pulling potential clients towards your business’s direction. However, a competitor or even another business that has nothing to do with construction at all might have already taken the name that you want to use for your construction firm. So, before naming your construction firm, you should check with your state’s filing agency as well as the United States Patents and Trademarks Office to see if another business has used or trademarked the name yet.
2.) You’ll have to apply for an employer identification number as well as a general business license.
For your construction firm’s day-to-day operations to run without a hitch, you should ensure that you’re complying with both federal tax laws and your state’s licensing laws.
- To ensure compliance with federal tax laws, you should register for an employer identification number with the Internal Revenue Service so that the government can keep track of your tax obligations.
- To ensure that your business is legally operating, you should register for a general business license with your state’s business license office,
3.) You should take advantage of various insurance policies.
You’ll want to protect yourself and your construction firm from any setback that you might encounter over the entire course of running your own business.
- You should consider utilizing comprehensive insurance policies as well as ones that cater to particular employees that your construction firm may have.
- As you may have little to no idea at all as to what specific insurance policies you should make use of for your construction firm, you should talk with an insurance agent about it.
4.) You should comply with various industry regulations, too.
The entire construction industry, in general, adheres to many regulations so that any unlawful practices are flagged right away. So even before deciding to put up your construction firm, you should take time to read up on Occupational Safety and Health Administration regulations, Housing and Urban Development standards, and various procedures on how to apply for a building permit and properly dispose of hazardous construction waste, to name but a few.
As of 2016, more than 700,000 construction firms are operating in the United States. Even the smallest construction firm out there makes a significant contribution to the growth of a country’s economy by ensuring that a house, building, or infrastructure is built well and for whatever specific purpose it might serve to the people who’ll use them. Starting up a construction firm isn’t that easy, though, which is why you should take note of the above legal considerations and discuss them with a lawyer.