Starting a contracting business: your first-month checklist

The usual order of things. Pick your state below for its exact rules, deadlines and official links.

1. 1

   Check your contractor license

   Many states license contractors, often for home improvement or jobs over a dollar amount. Cities and counties often license too. Check your state

2. 2

   Get general liability insurance

   General contractors and homeowners will ask for your certificate before you start a job. See options

3. 3

   Get your EIN

   Free from the IRS, online in about 10 minutes. Banks, clients and payroll all ask for it. You never need to pay a service for it. How to get it free

4. 4

   Open a business bank account

   Keeps the company's money separate from yours, which is what protects your LLC. See options

5. 5

   Insure your work truck

   Personal auto policies usually don't cover a vehicle used for business. See options

6. 6

   Payroll and workers' comp before your first hire

   Most states require workers' comp once you have employees, and payroll software handles the tax filings. See options