How to start a contracting business
Experience, licensing, bonds, insurance, subcontractors and your first projects — a plain checklist for starting a general contracting business, without the income promises.
Who it suits
Contracting suits someone with years on job sites who wants to run the whole project: pricing it, sequencing the trades, managing the client and carrying the risk. It takes more working capital and paperwork than most trades.
1.Get the experience first
Most contractors run their own jobs only after years in a trade or as a site lead. Many state licences require documented experience before you can sit the exam.
2.Decide what you will build
Residential repair and remodeling, new homes and commercial building are different markets with different clients, contracts, payment terms and licences.
Most new contractors start residential, where projects are smaller and the client is the owner.
3.Get licensed
Most states license general or residential contractors, often with project-size thresholds, exams and a bond. Some leave it to cities and counties.
Check your state’s contractor licensing board for the work and size of project you plan to take on.
4.Register, bond and insure
Form an LLC or corporation, get an EIN and open a business account.
General liability is the minimum, and clients and permits often require proof of it. Many states require a contractor bond. Workers’ compensation is required in most states once you hire, and some clients will ask for your subcontractors’ certificates too.
5.Build your subcontractor and supplier network
Licensed electricians, plumbers and HVAC contractors you trust, plus supplier accounts with terms. Check every sub’s licence and insurance before they start.
6.Estimate, contract and get paid in writing
Price labour, materials, subs, permits, disposal and overhead on every estimate, and date it — material prices move.
Put the deposit, the payment schedule and how changes are priced into the contract. Some states cap residential deposits; check yours.
7.Find your first projects
Claim a free Fixerlane listing so homeowners searching for a general contractor nearby can find and message you.
Smaller jobs done well lead to bigger ones. Photograph every project and ask every client for a review.
The trade in numbers
609,100 people work as construction managers in the US, and 38% of them are self-employed.
Source: U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, 2025
Construction manager employment is projected to grow 9% from 2025 to 2035, much faster than the average for all occupations.
Source: U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, 2025
60,635 new single-family general contractors (NAICS 236115) and 135,337 residential remodelers (NAICS 236118) have employees.
Source: U.S. Census Bureau, County Business Patterns, 2023
108,775 nonresidential building construction businesses (NAICS 2362) have no employees.
Source: U.S. Census Bureau, Nonemployer Statistics, 2023
Your first customers, free
List your contracting business on Fixerlane at no cost. Homeowners searching for construction & contracting in your area can find you and send enquiries, and replying is free. When the work picks up, the tools to quote, schedule and invoice are a 7-day free trial away.
Common questions
- Do I need a licence to be a general contractor?
- In most states, yes, at least above a certain project size — and many cities add their own registration. Requirements, exams and experience rules vary, so check your state contractor licensing board.
- How much does it cost to start a contracting business?
- We do not publish a figure. Licensing, bonding, insurance, tools and a vehicle vary by state and by the work you take on, and contracting needs working capital to carry projects between payments.
- Do I need my own crew, or can I use subcontractors?
- Both models work. Many small contractors keep a carpenter or two on staff and bring in licensed trades for electrical, plumbing and HVAC.
- How do I get my first contracting clients?
- A free listing where homeowners already search, smaller repair and remodel jobs that lead to larger ones, and referrals from trades and suppliers you work with.
- What software do small contractors use?
- Most need estimates, deposits, scheduling, time tracking, job costing and invoicing. Commercial GCs also need pay applications, retainage and lien waiver tracking, which Fixerlane does not do.
- How much do general contractors earn?
- We do not promise earnings. The Bureau of Labor Statistics publishes wage figures for construction managers and construction trades by state and metro area.