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How do I start my construction LLC?
Main Post:
Hi all, I’m based in Philadelphia as of right now and plan to get my contractor’s license soon. I have a few questions that I hope fellow Philadelphia contractors can help me to clear up. 1. For the mailing address, since I won’t have a storefront or anything, would it be advisable to use my home address or should I use a Commercial Registered Office Provider? (CROP) 2. How do you guys set up your operating agreements? Is there a specific template that you would recommend? 3. For registered agent, should I just put that as myself, a family, or should I hire a registered agent? I know any one of those options is fine, but want to know how other fellow contractors usually do it. 4. I know the amount of insurance I should be getting, but how much do you guys usually pay for the insurance? 5. So I notice there is the Home Improvement Contractor Registration where we need to register with the Attorney General’s Office if we do more than $5,000 of work. In my situation, I’m estimating that I’ll probably get my license by the end of the year of 2024 (November or December). Which most likely means I won’t be making $5,000 this year. Would I still need to register, or more precisely, do I re-register every year? 6. I recently moved into a new house and plan to do some repairs on it after I get my license. How do you guys usually handle such situations?Would I still report on material, cost and labors for my own projects onto my business and its taxes? 7. In all honesty, when should I pull for permits on jobs. I’ve read what a contractor can and cannot do without permits, and honestly, most of the work I would be doing in the future don’t even need permits since I won’t be changing the overall structure or anything of houses. I usually just do the cosmetics stuff such as drywall, papering, painting, tiles, flooring, cabinets and works of that nature for residential projects. For those who also do similar works, what situations have you pulled permits for residential projects. Sorry for the long post and if these are stupid questions. Really appreciate some advice from experienced contractors in Philly. Thank you in advance.
Top Comment: Registered agent is only useful if you are incorporating out of state where you don't have a presence. Fine to use yourself for that. I registered to my home address for my business and HIC license (NJ here). Tried to keep it simple and keep costs low. My liability coverage is for $1M and costs me $1500 a year. Use an insurance broker, they will shop around for best rate for you. Also interested to hear other opinions on permits. I also mostly do work not needing permits. Finally, I've been using Wave for estimates, invoicing and bookkeeping. Free package is great.