Business Launch Toolkit

Most trade businesses start as an LLC for liability protection and tax flexibility. An LLC separates your personal assets from business liabilities. File with your state Secretary of State office. Consider an S-Corp election once profits exceed $40-50K for potential tax savings on self-employment tax.

File your LLC Articles of Organization (or Corp Articles of Incorporation) with your state. Cost varies by state ($50-$500). Then get a free EIN from IRS.gov — you will need this for bank accounts, taxes, and hiring. Register your trade name (DBA) if different from your LLC name.

Apply online at IRS.gov/EIN. It is free and instant. You will need this for opening a business bank account, filing taxes, and hiring employees. Keep this number safe — it is your business equivalent of a Social Security number.

Requirements vary by state. Generally you need: proof of trade certification/experience, proof of insurance, surety bond, and application fee. Check your state licensing board website. Some states require a separate business license from the contractor license.

Visit your city or county clerk office. Most require a general business license ($50-$200/yr). Some jurisdictions require home occupation permits if working from home. Check zoning requirements for any planned shop/warehouse space.

Register with your state revenue department. You may need: sales tax permit (if your state taxes services), state employer withholding account (when you hire), and state unemployment insurance account. Many states allow online registration.

General liability insurance covers property damage and bodily injury claims. Most trade businesses need $1M-$2M coverage. Get quotes from multiple insurers — Next Insurance, Simply Business, and Thimble offer competitive trade business policies. Annual cost typically $500-$3,000 depending on trade and revenue.

Workers comp is required in most states once you have employees (some require it for sole proprietors in certain trades). Cost is based on payroll and risk classification. Shop multiple carriers. Your state may have a state fund option.

A surety bond guarantees you will follow regulations and complete contracted work. Bond amount varies by state ($5K-$25K typical). Cost is usually 1-15% of bond amount based on your credit score. Contact a surety bond company or your insurance agent.

Open a business checking account at a bank or credit union. You will need your EIN, LLC documents, and ID. Keep ALL business income and expenses in this account — never mix personal and business funds. Consider banks with good mobile apps for depositing checks on job sites.

QuickBooks Self-Employed or QuickBooks Online Simple Start ($15-30/mo) are the most popular for trades. Alternatives: Wave (free), FreshBooks. Set up categories for: materials, labor, vehicle expenses, tools, insurance, licensing. Connect your business bank account for automatic transaction import.

Use your accounting software to create branded invoices. Include: your company name/logo, license number, description of work, materials used, labor charges, payment terms (Net 15 or Net 30), and accepted payment methods. Offer multiple payment options to get paid faster.

Choose a name that is professional, easy to remember, and available as a domain name. Check your state business name registry. For logos: Canva (free), 99designs ($299+), or Fiverr ($50+). Keep it clean and professional — your logo will go on trucks, uniforms, and business cards.

Create a free Google Business Profile at business.google.com. Add: business hours, service area, photos of your work, services offered. This is the #1 way local customers will find you. Ask every happy customer for a Google review — reviews are crucial for ranking.

Options: Squarespace ($16/mo), Wix ($16/mo), or WordPress ($5-30/mo). Include: services offered, service area, photos of past work, customer reviews, contact form, phone number, and your license number. Keep it simple and mobile-friendly. A basic 3-5 page site is all you need to start.

These platforms connect you with customers looking for your trade services. Start with Thumbtack (pay per lead) or Angi (monthly subscription). Set a daily budget you are comfortable with. Track your cost per job to ensure profitability. Respond to leads within 5 minutes for best results.

Network with related trades who can refer work to you (electricians refer plumbers, etc.). Join your local Chamber of Commerce. Attend trade association meetings. Offer referral bonuses ($50-100) to other contractors. Real estate agents and property managers are excellent referral sources.

Hire when you are consistently turning down work. Start with a helper/apprentice ($15-20/hr) before hiring a journeyman. You will need: workers comp insurance, payroll setup (Gusto, $40/mo), employee handbook basics. Consider 1099 subcontractors for overflow work, but follow IRS rules carefully.