Starting a small construction business in Texas is an exciting step in your career. There’s nothing quite like owning your own business and seeing your dream become a reality. But starting a construction business in Texas takes time and some grunt work.
Every situation is different, but there are some basic steps that most people follow to start their business. Talking to a business attorney early in the process is essential. Like most states, Texas has special rules about starting a business. You’ll need to make sure that you understand and follow Texas law when starting your construction business. Some missteps may result in minor delays or fees. Others can have serious consequences.
At the Curley Law Firm, PLLC, we help our clients plan, preserve, and protect their business. Starting a construction business in Texas isn’t just an idea—it’s an investment. The last thing that you want is to lose your investment because of something within your control. Adam Curley has over a decade of experience successfully helping business clients in and out of the courtroom.
How to Start a Construction Company in Texas
Every situation is different, but here are some basic steps most people follow when setting up their business.
Perform Market Research for Your Area
Before you invest your time and money into a business, you need to know how it will perform. This information helps you make informed investment choices and focus your marketing efforts appropriately. Here are some questions to consider:
- Who is your target client?
- What kinds of construction will you be doing?
- What existing businesses are you going to be competing against?
- What need will your business be fulfilling?
- What areas will your business serve?
Understanding the who, what, why, when, where, and how before you begin helps you hone your focus.
Write a Solid Business Plan
After researching the Texas construction market, it’s time to write a solid business plan. A business plan is the blueprint for your new company. There are many types of business plans out there, but most cover the following topics:
- Summary of what your business will do or provide;
- Details about your business’s financial information;
- Internal structure and mission statement;
- Results of market research or competition research; and
- Marketing strategy or goals.
Encourage investors to contribute time or money to your venture by making sure that your business plan gives them all the information they will want to make that decision. For example, be as specific as possible about how much money your business needs to start up and stay afloat in the first year. Come up with realistic figures about how much you will pay yourself and your workers and how much you’ll need in upfront costs to fund construction jobs.
Before you accept any money from investors (even family and friends), the best practice is to talk to a business formation attorney. Well-intentioned handshake deals can devolve into messy contract disputes later on if you don’t have things written down in the proper form.
At Curley Law Firm, PLLC, we provide clients with big firm experience and small firm attitude. Adam Curley leverages his big law experience with the personalized attention and accessibility of an attorney at a small firm. We understand that your business is important to you, and we do everything we can to help set you up for success.
Decide What Business Type to Form
The last step before officially forming your business is choosing a legal business entity that fits your situation. The most common types of business entities include:
What entity type you use for your business is important because it can determine the following:
- How the government taxes your construction company;
- Whether you have to pay annual registration fees;
- Who manages the business;
- What types of insurance the business needs to carry; and
- How often and what types of meetings your company must hold.
The best way to decide what business entity fits your situation is to talk to an experienced business attorney. You might think that because you’re forming the business on your own or with a friend, it’s not necessary to file legal paperwork. But legally forming a business creates a distinction between your personal assets and liabilities and those of the business. Without this legal boundary, you might be liable for the business debts.
Protect yourself and your investment by talking to an experienced attorney. They can help identify what you must, should, and can file or sign. In addition, they will help identify and draft the appropriate contracts and agreements for your construction business.
Other Important Steps to Starting a Construction Business
After you legally form your business, there are additional steps that you may need to take to legally operate. Let’s go over those now.
What Licenses Are Needed for a Construction Business in Texas?
In Houston, you typically don’t need to get a general business license to operate. That said, you may have to meet certain requirements to legally operate within the city. For example, some businesses (like those with hazardous material) must be a minimum distance away from schools or other institutions. Further, the State of Texas may require you to get a license. The best way to make sure that you meet these requirements is to contact an experienced Texas business attorney.
What Permits Do I Need to Open a Construction Business in Texas?
In most cases, your business has to get a permit from the city for each job that it does. A business attorney can help you determine what business permits you need to get the job done.
Curley Law Firm, PLLC—The Business Law Firm That Houston Heights Trusts
For over 10 years, we have helped businesses in the Houston, Texas area in and out of the courtroom. Adam Curley is a Houston Heights lawyer, through and through. He cares about the Heights community and gives back by serving on boards and committees. He uses his big law experience to provide next-level legal services to clients with the attention of a small firm.