Many business owners are under the impression that running a construction company is easy. It must be legal if you are doing something on your property, right? Damon Becknel, an experienced entrepreneur and land developer, understands that It takes much more than owning property to run a construction company. Before opening your doors for business, there are some very important planning measures to take care of. You could find yourself in big trouble with federal law enforcement agencies by not heeding these advisories. These five tips will help keep your construction business out of hot water with the authorities while still allowing you to prosper in this highly profitable industry:
Make Sure Your Construction Business Has Registered With The Federal Government
This may seem like common sense, but many small companies are still operating without registering with the Department of Labor. Not only is it required, but many states require registration as well. This can be completed online and takes less than five minutes to fill out. Each state has a different name for its Division of Labor or Department of Industrial Relations, so check with your state’s website before applying:
Keep A Copy Of Your Registration And LLC Certificate In A Safe Place
Yes, you need to keep a copy of your license and incorporation certificate on file with the government agencies that issued them, but that is just the beginning. Keeping copies in one central location will be beneficial if your license or incorporation paperwork gets lost during office remodeling or an unfortunate incident at home, such as a fire. Make sure this safe place is unknown to anyone who does not need to know its location.
Make Sure All Employees Have Proper Identification
While all employees should be at least 18 years of age, not every state requires identification that proves this. If you happen to live in one of those states, hiring minors could bring down the hammer on your construction business before it’s even begun! There are many legal options for verifying if a potential employee is old enough to work with or around hazardous equipment such as forklifts and cranes, so don’t discriminate against young job seekers who may be safer than their older counterparts!
Don’t Forget About Workers’ Compensation Insurance
Even if you only hire independent contractors – meaning no full-time employees – you still need workers’ compensation insurance. This plan protects the business owner if an independent contractor is injured while working and can’t afford to take time off without pay. Like most types of insurance, The Company must purchase this plan from a state-licensed agency, and premiums paid upfront for the entire year.
Make Sure All Employees Know Their Rights
Finally, you should go over all construction workers’ rights in their states, such as minimum wage laws and when breaks can (and cannot) be taken. Not only will this help your company avoid legal trouble down the road, but it will also bring peace of mind to all employees who know they are being treated fairly by their employer. By following these five easy steps, your construction company will be on its way to success!
Final Thoughts
The five tips in this article are just the beginning of running a safe construction company. Your business still needs to be insured, purchase equipment, pay taxes and make sure all employees know their rights. It is also important to advertise your services through social media, online classifieds, and free print ads to attract more customers coming through your door!
While operating a small business may seem like an overwhelming task initially, many benefits come with it. You can set up your hours around family responsibilities or pick up extra shifts at another part-time job while keeping total control over how much you make each week! So quit stalling and start finding some great talent for your new construction company before someone else snatches up your dream employees!
