A home renovation business is ideal because of its ability to make money regardless of the overall economy. During upturns, people will renovate rather than purchase at a higher price while during downturn, homeowners will renovate to bring up a property’s value. You don’t necessarily have to be a skilled professional, because you can act as a broker or contractor, meet with clients, create a budget and hire others to actually perform the work without you having to renovate a place yourself.
1. Form your renovation business structure. Hire a lawyer to create your articles of incorporation or go online to a legal document production service, such as U.S. Legal Forms or Law Smart, and create the articles. File your renovation business’ articles with the secretary of state.
2. Register your business name and obtain an Employer Identification Number. Contact the secretary of state’s office or the county clerk’s office and get a fictitious name or assumed name registration application form. Complete the application and return it to the secretary of state’s office or to the county clerk. Go to the IRS’s Employer Identification Number application section on its website (See Resources). Complete the online application form and obtain an EIN.
3. Get licensing. Laws differ from state to state but in general, you will need a general contractor’s license or residential remodeling/renovation license. Check with your state’s department of business and professional regulation to learn licensing requirements and application fees.
4. Purchase insurance. Contact a licensed insurance broker and ask what insurance products you should carry for your renovation business. Typically, you will need liability insurance and may need to be bonded to operate your renovation business.
5. Contract experienced and licensed subcontractors. Contact the local Chamber of Commerce and the Better Business Bureau to find qualified plumbers, electricians, carpenters, and heating, venting, and air conditioning specialists. In addition, visit your state’s division of professional licensing and conduct a search for service providers in your area and verify their licenses.
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