Create a Business Plan

• Writing out business goals and action steps helps you clarify and organize your priorities.

Choose a business structure

• When starting a business, you will need to select a business structure for your business. This decision impacts how much you pay in taxes and your personal liability (i.e. who is legally responsible for debts). You will need to decide before registering your business.

Choose and file a business name

• If you choose to conduct business under a name different than your own (ie. John Doe), you must file a Fictitious Business Name (FBN) with the SF Office of the County Clerk.

Apply for an Employer Identification Number (EIN)

• An Employer Identification Number (EIN) is also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number. It is a unique nine digit number assigned by the Internal Revenue Service (IRS).
• Generally, businesses need an EIN to pay employees and to file business tax returns.

Register your business in San Francisco

• If you register your business before choosing a final location, you will have to update your registration with the new address. This can cost money and time.

Get a General Building Contractor License

• This is required for anyone doing construction in California.
  • For projects where the combined value of labor, materials, and all other costs on one or more contracts is less than $500, you do not need a General Contractor’s license.
  • In addition to the General Building Contractor license, there is a Residential Remodeling Contractor License, and there are several Specialty Contractor Licenses covering specialized work. Applicants may apply for one or multiple license classifications. Visit the CSLB website for a description of license classifications.

Obtain workers' compensation insurance

• You will need this insurance if you will have employees.
• Note: If you are a roofer and don't have any employees, you are still required to carry workers' compensation insurance.

Adopt workplace safety measures

• Comply with Occupational Safety and Health Administration (OSHA) requirements. These include providing a workplace free of hazards, training employees to do their jobs safely, notifying government administrators about serious workplace accidents, and keeping detailed safety records.
   

• Solicit work. There are a number of ways to seek out work, including using the web, word-of-mouth, advertising, and partnerships. 
  • Note: Ask for references from existing customers. Word-of-mouth can be the most effective way to gain new customers.
  • Consider applying to be a registered "Local Business Enterprise" to bid on government contracts.
• Negotiate compensation & payment plan prior to signing a contract. Consider taking a class or seeking other advice on contracts. 
• Ensure all building permits are in order. As a contractor, you are ultimately responsible for advising the person or company that hired you. You may not begin working without proof that all required permits are approved.
• Dispose of construction and demolition debris properly. These materials must be removed from a project and properly recycled or reused.
• Prepare and pay your local, state, and federal taxes.