Starting a construction or contracting business can be a rewarding experience. Running your own enterprise can also be difficult without a New Mexico Insurance Agency to help ensure that your business is properly protected, and here are some basic business and regulatory tips to keep in mind. Start by planning a business strategy, as well as incorporating and registering with the proper government agencies.
You’ll need to get licensed, bonded, and insured
Protect the business, its clients, and your own personal interests by having the right licenses and permits, construction insurance, and surety bonds. In order to operate legally you’ll need a business license and permits. As an example, a license is required for electrical, plumbing, HVAC, gas fitting, and other construction trades.
Asurety bondis another thing that construction businesses need in order to operate legally. You’ll need to arrange for a surety bond from a third party that promises to pay the client if the company is unable to fulfill their work obligations under any contracts. Bond regulations vary by state, so research state requirements or speak to a reputable surety bond agent.
Depending on the nature of the work and whether you’ll employ workers directly, you will need several types of business insurance. Obtain general liability insurance as well as vehicle and property insurance. This will protect against claims for personal injury and property damage, and cover the costs of legal proceedings. Individual states also require businesses to carry specific insurance, such as workers’ compensation insurance, unemployment and state disability insurance.
The Occupational Safety and Health Act (OSHA) have the requirement that all construction workers are provided a safe workplace free from recognized hazards.
Hiring workers who fill different roles
The construction industry provides employment to hired employees, subcontractors, labor brokers, and independent contractors. When hiring employees, construction companies take on additional obligations such as withholding taxes, paying wages,benefits, complying with employment law, and so on. While there are no specific laws governing how one may work with subcontractors, it might be wise to draw up some type of a contractual agreement and ensure that they too are licensed, bonded, and insured.
There is strict tax reporting requirements for working with independent contractors. Read and understand them and contact a New Mexico Insurance Agency concerning the different construction insurance needs related to operating a business of this type and utilizing this workforce.