Starting Your Own Construction Company In Virginia

Have you considered taking your construction skills commercial and starting your very own construction company? There are many benefits to owning your own business, but there are also legal requirements you must keep in mind. We are here to help you or even just advise you on best practices.

Step One: Creating the Entity

In the construction business, there is always a risk of property damage and physical injury. It is important that you limit your personal legal liability as much as possible. This is done by creating a legal business entity as opposed to acting as a sole proprietor. The Virginia State Corporation Commission has formation information including forms for both corporate and limited liability company (LLC) filings, and instructions for filing. A lawyer can help you organize your business in a way that makes it run efficiently and protects you.

Note: Beware of Form Services

The difference between a corporation and an LLC boils down to tax treatment. You can read about the difference here, but you may want to consult an attorney to be sure you are making the best choice. I know a lawyer telling you to ask a lawyer sounds self-serving, but to many times I have seen clients that turned to places like legal zoom for articles of organization or operating agreements only to find themselves in legal trouble that was not anticipated by these basic forms. These forms are designed for the lowest common denominator and often do not take into account the specific industry concerns that construction companies have.

Step Two: Get Your Employer Identification Number

Each entity will need an employer identification number (EIN), aka a tax ID number. You can file paper forms or do so electronically with the IRS.

Step Three: Get a Contractor’s License and Keep it Recent

Virtually all construction work requires licensing in Virginia. Information on forms and applications is available from the Board of Contractors. The Board even provides a handy step by step guide to obtaining a license. If you need a license and fail to get it, it may mean you cannot get paid for your work. This license must be kept up to date. Many people neglect to make sure their license is recent. Keep track of this.

Step Four: Get Your Business License

Virginia requires new businesses to file business license applications in their locality. Fairfax County, for example, includes quite a lot of information on business licenses and personal property taxes online. This could mean that you will need to get a license in every city or county you plan to work in. Yes this is just the government hitting you up for extra money, but you could face serious problems if you do not comply.

This is only the beginning. If you think you are ready to become your own boss and start your own company please give us a call at (703) 454-5147 or visit Our Website Here.