As one of the fastest-growing industries for small businesses, construction offers plenty of growth opportunities for entrepreneurs. States like California, Florida, and New York boast over 40,000 construction companies per state thanks to housing and business office space demand and real estate values. Once you know how you plan on operating whether as an architect, contractor, or even running a retail shop that sells construction equipment, then you can choose the legal structure that fits your business.
What's the Best Entity to Form?
If you're running a small company... Form an LLC. Legal protection is a necessity in construction because of the industry's hazards and working conditions. By forming an LLC, your company becomes its own entity. Should issues arise, your own personal assets will be protected from your professional ones. LLCs work best as formations for smaller companies since they're easier to run with fewer maintenance requirements. Keep in mind that you will also need to apply for permits, licenses, insurance, and surety bonds too. While each city and state has different laws to regulate the construction industry, our business licenses package ensures you don't accidentally miss one.
If you want to raise capital for your brand and take it public... Form a Corporation. If you know you want to establish larger operations or raise capital from outside investment sources, a Corporation is your best formation bet. Corporations allow you to keep your personal assets separate from those of the business while enabling your business to accept money from investors and provide for the issuance of stock in your company.
Why Your Construction Company Needs This Legal Structure
According to the U.S. Small Business Administration, six of the 10 fastest-growing industries among small businesses are tied to construction. Growth aside, legal protection is extremely important for any construction company getting its start. Since these companies are heavily regulated and required to abide by state and federal regulations, it's absolutely essential to legitimize your business to stay compliant. Get that protection today! Form an LLC with the help of our experts who make it easy to file your documents so you can get back to the booming construction business.