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.sw-a__hero-figure img{aspect-ratio:4\/3}.rv2 .sw-a .sw-a__tldr{padding:0 20px !important}.rv2 .sw-a .sw-a__tldr-box{padding:24px 22px}.rv2 .sw-a .sw-a__finalcta{padding:64px 20px}.rv2 .sw-a .sw-a__faq{padding:56px 20px}}body:has(.rv2) #masthead,body:has(.rv2) #colophon{display:none !important}.rv2 .pm__prefsrc{text-align:inherit}.rv2 .pm__prefsrc a{text-decoration:none !important;border-bottom:0 !important}.rv2 .pm__prefsrc a:focus-visible{outline:2px solid var(--rv-blue);outline-offset:3px}.rv2 .rv-legacy-foot{display:none !important}.rv2 .rv-site-header p:not([class]),.rv2 .rv-site-footer p:not([class]){display:contents !important}.rv2 .rv-bgi{display:block;background-position:center;background-size:contain;background-repeat:no-repeat}.rv2 .rv-brand .rv-bgi{width:124px}@media (min-width:768px){.rv2 .rv-brand .rv-bgi{width:136px}}@media (min-width:1024px){.rv2 .rv-brand .rv-bgi{width:142px}}.rv2 .sw-c div[style*=\"display:flex\"]>br,.rv2 .sw-t div[style*=\"display:flex\"]>br{display:none !important}.rv2 .sw-c h1,.rv2 .sw-t h1{font-size:clamp(34px,11.2vw,52px) !important;line-height:1.02 !important;letter-spacing:-.045em !important}@media (min-width:1024px){.rv2 .sw-c h1,.rv2 .sw-t h1{font-size:52px !important;letter-spacing:-.05em !important}}@media (max-width:767px){.rv2 .sw-c section:first-of-type a[style*=\"border-radius:999px\"]:not([href*=\"preferences\/source\"]),.rv2 .sw-t section:first-of-type a[style*=\"border-radius:999px\"]:not([href*=\"preferences\/source\"]){display:flex !important;width:100% !important;justify-content:center !important;box-sizing:border-box !important;min-height:52px}}<\/style>\n<article class=\"sw-a\">\n<section class=\"sw-a__hero\">\n<div class=\"sw-a__inner\">\n<div class=\"sw-a__breadcrumb\">Blog &nbsp;&rsaquo;&nbsp; Business &amp; Growth<\/div>\n<p>    <span class=\"sw-a__eyebrow\">General Contracting &middot; Business Guide<\/span><\/p>\n<h1><span class=\"rv-h1-a\">How to Start a General Contracting Business:<\/span> <span class=\"rv-h1-b\">2026 Step-by-Step Guide<\/span><\/h1>\n<p class=\"sw-a__subtitle\">Exactly how to start a general contracting business in eight moves: register, license, bond, insure, build a bench, price for margin, and quote fast.<\/p>\n<div class=\"sw-a__hero-cta\"><a href=\"https:\/\/swcostestimator.app.link\/ce-ai\" target=\"_blank\" rel=\"noopener\">Try SimplyWise Cost Estimator free<\/a><span class=\"sw-a__hero-cta-note\">Free to try &middot; <b>4.8<\/b> on the App Store for SimplyWise Cost Estimator<\/span><\/div>\n<div class=\"sw-a__meta\">\n      <span>SimplyWise<\/span><br \/>\n      <span class=\"sw-a__dot\"><\/span><br \/>\n      <span>Updated July 9, 2026<\/span><br \/>\n      <span class=\"sw-a__dot\"><\/span><br \/>\n      <span>5 min read<\/span>\n    <\/div>\n<p class=\"pm__prefsrc\" style=\"margin:16px 0 0;\"><a href=\"https:\/\/www.google.com\/preferences\/source?q=simplywise.com\" target=\"_blank\" rel=\"noopener\" style=\"display:inline-flex;align-items:center;gap:8px;min-height:36px;max-width:100%;box-sizing:border-box;padding:6px 14px;background:#fff;border:1px solid #dbe6ff;border-radius:999px;color:#2563eb;font:600 13.5px\/1.3 Inter,-apple-system,sans-serif;text-decoration:none;white-space:nowrap;\"><svg width=\"18\" height=\"18\" viewBox=\"0 0 48 48\" aria-hidden=\"true\" focusable=\"false\" style=\"flex:none\"><path fill=\"#EA4335\" d=\"M24 9.5c3.54 0 6.71 1.22 9.21 3.6l6.85-6.85C35.9 2.38 30.47 0 24 0 14.62 0 6.51 5.38 2.56 13.22l7.98 6.19C12.43 13.72 17.74 9.5 24 9.5z\"\/><path fill=\"#4285F4\" d=\"M46.98 24.55c0-1.57-.15-3.09-.38-4.55H24v9.02h12.94c-.58 2.96-2.26 5.48-4.78 7.18l7.73 6c4.51-4.18 7.09-10.36 7.09-17.65z\"\/><path fill=\"#FBBC05\" d=\"M10.53 28.59c-.48-1.45-.76-2.99-.76-4.59s.27-3.14.76-4.59l-7.98-6.19C.92 16.46 0 20.12 0 24c0 3.88.92 7.54 2.56 10.78l7.97-6.19z\"\/><path fill=\"#34A853\" d=\"M24 48c6.48 0 11.93-2.13 15.89-5.81l-7.73-6c-2.15 1.45-4.92 2.3-8.16 2.3-6.26 0-11.57-4.22-13.47-9.91l-7.98 6.19C6.51 42.62 14.62 48 24 48z\"\/><\/svg>Add SimplyWise as a preferred source<\/a><\/p>\n<figure class=\"sw-a__hero-figure\">\n      <img decoding=\"async\" src=\"https:\/\/images.unsplash.com\/photo-1632862378103-8248dccb7e3d?w=1400&#038;h=700&#038;fit=crop&#038;q=80&#038;auto=format\" alt=\"Contractor reviewing building plans on a residential jobsite while planning how to start a general contracting business\" loading=\"eager\"><br \/>\n    <\/figure>\n<\/p><\/div>\n<\/section>\n<section class=\"sw-a__tldr\">\n<div class=\"sw-a__tldr-box\">\n<div class=\"sw-a__tldr-label\">How to start a general contracting business at a glance<\/div>\n<div class=\"sw-a__tldr-body\">\n<ol>\n<li>Pick a lane: remodels, new homes, or commercial buildouts.<\/li>\n<li>Write a one-page plan with a budget and a revenue target.<\/li>\n<li>Choose a legal structure and register it with your state.<\/li>\n<li>Get a free EIN from the IRS and open a business bank account.<\/li>\n<li>Get licensed with your state board before you bid.<\/li>\n<li>Line up bonding, general liability, and workers&#8217; comp.<\/li>\n<li>Build a vetted subcontractor bench and supplier accounts.<\/li>\n<li>Price off real costs, then quote fast enough to win.<\/li>\n<\/ol><\/div>\n<div class=\"sw-a__tldr-cta\"><span>SimplyWise turns a job photo into an itemized estimate in about 6 seconds.<\/span><a href=\"https:\/\/swcostestimator.app.link\/ce-ai\">Price From a Photo<\/a><\/div>\n<\/p><\/div>\n<\/section>\n<section class=\"sw-a__body\">\n<div class=\"sw-a__inner\">\n<h2>What it takes to run your own jobs<\/h2>\n<p>Learning <strong>how to start a general contracting business<\/strong> comes down to eight moves: pick a lane, write a plan, register the entity, get licensed, get bonded and insured, build a bench, price for margin, and quote fast. Every number in this guide traces to the Bureau of Labor Statistics, the Small Business Administration, or the IRS, so you can verify every claim.<\/p>\n<p>The demand is real. The BLS projects employment of construction managers, the occupation that covers self-employed general contractors, to grow 9 percent from 2024 to 2034, with about 46,800 openings each year, and the median construction manager earned $106,980 in May 2024. The BLS also notes that people with a high school diploma and trade experience may be more likely to work as self-employed general contractors, so the experience you already have is the foundation.<\/p>\n<h2>How to start a general contracting business in 8 steps<\/h2>\n<p>The steps run in order because each unlocks the next: no bank account without an entity and an EIN, no legal bids without a license, no bigger jobs without bonding. This is how to start a general contracting business without a compliance surprise.<\/p>\n<ol class=\"sw-a__steps\">\n<li>\n<h3>Pick your lane and validate demand<\/h3>\n<p>Decide what you build before anything else. Residential remodels and additions are the most common entry point: smaller jobs, short sales cycles, and one happy homeowner refers the next. Count real demand in your area first, then expand as your track record and bonding capacity grow.<\/p>\n<\/li>\n<li>\n<h3>Write a one-page plan and startup budget<\/h3>\n<p>Skip the 40-page plan. One page answers four questions: what you build, who buys it, what it costs to start, and what revenue target makes the year worth it. List license fees, bonds, insurance, a vehicle, tools, and software honestly, then reverse-engineer the target into projects per year.<\/p>\n<\/li>\n<li>\n<h3>Choose a legal structure and register it<\/h3>\n<p>Per the SBA, a sole proprietorship is easy to form but leaves you personally liable for the debts of the business, while an LLC protects personal assets in most lawsuit and bankruptcy scenarios. A general contractor answers for subcontractors and jobsite safety, so most skip the sole proprietorship. Register the entity with your state.<\/p>\n<\/li>\n<li>\n<h3>Get an EIN and open a business bank account<\/h3>\n<p>An EIN is your federal tax ID, and the IRS issues it free in minutes at IRS.gov, so never pay a third-party site for it. You need one to hire employees or run a corporation or partnership. Open a dedicated business checking account the day the EIN arrives.<\/p>\n<\/li>\n<li>\n<h3>Get your general contractor license<\/h3>\n<p>Most states require a general contractor license above a dollar threshold, often with a trade exam plus a business and law exam, and rules vary by state and city. Check your state licensing board and local building department before you bid, because unlicensed contractors often cannot enforce a contract in court.<\/p>\n<\/li>\n<li>\n<h3>Get bonded and insured<\/h3>\n<p>A license bond is often required to get licensed at all, and bid or performance bonds unlock public and larger private work. The SBA guarantees bid, performance, and payment bonds for small contractors who might not qualify on the open market. Carry general liability from day one and add workers&#8217; compensation when you hire.<\/p>\n<\/li>\n<li>\n<h3>Build your subcontractor and supplier bench<\/h3>\n<p>A general contractor wins by coordinating other people&#8217;s labor. Vet every electrician, plumber, framer, and finish crew for license, insurance, and references, because their work becomes your liability. Open accounts at the supply houses you buy from most for contractor pricing, credit, and same-day material.<\/p>\n<\/li>\n<li>\n<h3>Price for margin, then quote fast<\/h3>\n<p>Build every bid from the cost up: burdened labor, real material prices, subcontractor quotes, then overhead and a target margin set by project type and risk. Owners reward the contractor who sends a clear, itemized proposal first. Our guide to <a href=\"https:\/\/www.simplywise.com\/blog\/how-to-bid-construction-job-guide\/\">how to bid a construction job<\/a> breaks down the full bid.<\/p>\n<p class=\"sw-a__inline-cta\"><a href=\"https:\/\/swcostestimator.app.link\/ce-ai\" target=\"_blank\" rel=\"noopener\">Price your next job from a photo, free &rarr;<\/a><\/p>\n<\/li>\n<\/ol>\n<h2>Quote faster with SimplyWise<\/h2>\n<p>Every part of how to start a general contracting business feeds one moment: the bid that wins the first job. The SimplyWise Cost Estimator turns a photo of the job into an itemized estimate in about 6 seconds, so the quote goes out the same day. Our roundup of the <a href=\"https:\/\/www.simplywise.com\/blog\/best-software-for-general-contractors\/\">best software for general contractors<\/a> covers the rest of the stack. It is free to try.<\/p>\n<p style=\"text-align:center;margin-top:28px\"><a href=\"https:\/\/swcostestimator.app.link\/ce-ai\" style=\"display:inline-flex;align-items:center;gap:8px;padding:14px 24px;border-radius:999px;font-size:15px;font-weight:600;background:#0071bd;color:#fff;text-decoration:none;border:none\">Try the Cost Estimator Free<\/a><\/p>\n<div class=\"sw-a__sources\">\n<h2>Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.bls.gov\/ooh\/management\/construction-managers.htm\" target=\"_blank\" rel=\"noopener\">U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Construction Managers<\/a>. Median wage $106,980 (May 2024), 9 percent projected growth 2024 to 2034, about 46,800 openings per year. Verified July 9, 2026.<\/li>\n<li><a href=\"https:\/\/www.sba.gov\/business-guide\/launch-your-business\/choose-business-structure\" target=\"_blank\" rel=\"noopener\">U.S. Small Business Administration, Choose a business structure<\/a>. Sole proprietorship liability and LLC asset protection. Verified July 9, 2026.<\/li>\n<li><a href=\"https:\/\/www.sba.gov\/funding-programs\/surety-bonds\" target=\"_blank\" rel=\"noopener\">U.S. Small Business Administration, Surety bonds<\/a>. SBA guarantee of bid, performance, and payment bonds. Verified July 9, 2026.<\/li>\n<li><a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/get-an-employer-identification-number\" target=\"_blank\" rel=\"noopener\">Internal Revenue Service, Get an employer identification number<\/a>. Free EIN issued directly by the IRS. Verified July 9, 2026.<\/li>\n<\/ul>\n<\/div><\/div>\n<\/section>\n<section class=\"sw-a__pull\">\n<blockquote><p>\n    The license makes you legal and the bond makes you biddable, but the fast, itemized quote is what gets you paid.\n  <\/p><\/blockquote>\n<p>  <cite>SimplyWise Editorial<\/cite><br \/>\n<\/section>\n<section class=\"sw-a__faq\">\n<h2>Starting a general contracting business: common questions<\/h2>\n<div class=\"sw-a__faq-list\">\n<details>\n<summary>Do you need a license to start a general contracting business?<\/summary>\n<div class=\"sw-a__faq-answer\">\n<p>In most states, yes. A general contractor license is usually required above a dollar threshold, and some cities and counties add their own registration. Check your state licensing board and local building department before you bid, because unlicensed contractors often cannot enforce a contract in court.<\/p>\n<\/p><\/div>\n<\/details>\n<details>\n<summary>Should a general contracting business be an LLC or a sole proprietorship?<\/summary>\n<div class=\"sw-a__faq-answer\">\n<p>Per the Small Business Administration, a sole proprietorship is easy to form but leaves you personally liable for the debts of the business. An LLC protects personal assets in most lawsuit and bankruptcy scenarios, which is why most general contractors choose one. Talk to an accountant, then register the entity with your state.<\/p>\n<\/p><\/div>\n<\/details>\n<details>\n<summary>How much does it cost to start a general contracting business?<\/summary>\n<div class=\"sw-a__faq-answer\">\n<p>There is no single number because license fees, bond premiums, and insurance vary by state. The core categories are entity registration, a free EIN from the IRS, license and exam fees, bonds, general liability insurance, workers&#8217; compensation once you hire, a vehicle and tools, and estimating software.<\/p>\n<\/p><\/div>\n<\/details>\n<details>\n<summary>Is a general contracting business profitable?<\/summary>\n<div class=\"sw-a__faq-answer\">\n<p>It can be. The BLS reports the median construction manager earned $106,980 in May 2024 and projects 9 percent employment growth from 2024 to 2034, but a business only nets what its pricing protects. Build every bid from direct cost plus overhead plus a target margin, and track job costs from day one.<\/p>\n<\/p><\/div>\n<\/details><\/div>\n<\/section>\n<section class=\"sw-a__finalcta\">\n  <span class=\"sw-a__eyebrow\">Win the first bid<\/span><\/p>\n<h2>Send your first professional quote in seconds, not hours.<\/h2>\n<p>Snap a photo of the job and get an itemized estimate in about 6 seconds. Price the work, send the quote, and win the job while the other contractor is still doing math. Free to try.<\/p>\n<div class=\"sw-a__cta-buttons\">\n    <a href=\"https:\/\/swcostestimator.app.link\/ce-ai\" style=\"display:inline-flex;align-items:center;gap:8px;padding:14px 24px;border-radius:999px;font-size:15px;font-weight:600;background:#0071bd;color:#fff;text-decoration:none;border:none\">Try SimplyWise Free<\/a>\n  <\/div>\n<\/section>\n<\/article>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"Article\",\n  \"headline\": \"How to Start a General Contracting Business: 2026 Step-by-Step Guide\",\n  \"description\": \"How to start a general contracting business in 8 steps: register, license, bond, insure, build a subcontractor bench, price for margin, and quote fast.\",\n  \"author\": {\n    \"@type\": \"Organization\",\n    \"name\": \"SimplyWise\"\n  },\n  \"publisher\": {\n    \"@type\": \"Organization\",\n    \"name\": \"SimplyWise\",\n    \"logo\": {\n      \"@type\": \"ImageObject\",\n      \"url\": \"https:\/\/www.simplywise.com\/icon-512x512.png\"\n    }\n  },\n  \"datePublished\": \"2026-06-18\",\n  \"dateModified\": \"2026-07-09\",\n  \"mainEntityOfPage\": {\n    \"@type\": \"WebPage\",\n    \"@id\": \"https:\/\/www.simplywise.com\/blog\/how-to-start-a-general-contracting-business\/\"\n  },\n  \"image\": \"https:\/\/images.unsplash.com\/photo-1632862378103-8248dccb7e3d?w=1400&h=700&fit=crop&q=80&auto=format\"\n}\n<\/script><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"HowTo\",\n  \"name\": \"How to Start a General Contracting Business\",\n  \"description\": \"Eight steps to start a general contracting business: pick a lane, plan, register, get an EIN, get licensed, get bonded and insured, build a subcontractor bench, and price and quote fast.\",\n  \"step\": [\n    {\"@type\": \"HowToStep\", \"position\": 1, \"name\": \"Pick your lane and validate demand\", \"text\": \"Decide what you build first. 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The BLS reports the median construction manager earned $106,980 in May 2024 and projects 9 percent employment growth from 2024 to 2034, but a business only nets what its pricing protects. 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