Be an Independent Contractor

So you've been working for a contracting company for years, and you're sick and tired of working for someone else. One morning, you wake up, quit your job, and think, "Gee, I want to become an Independent Contractor".

Steps

  1. Give your business a name.
  2. Register your business - Register your business with the federal government,your state registry, and your city (if applicable). This is the most important step of doing business legally.
  3. Register for your EIN Number - This is the number you will need in order to open a bank account, get insurance, register for workman's comp, etc;. It's better to register for it as soon as possible and have it, then have to try to get it later.
  4. Open a Bank Account - Open a bank account in your business name.
  5. Get insurance - Most counties and states have a minimum amount that you are required to be insured for. Make sure to get AT LEAST the minimum amount.
  6. Apply for your state/county contractor's license - In most states, you need to be licensed. If you have to wait a while to get that license, hire someone else with a contractor's license. In states like New York, the license is for the individual, not the company. Make sure to do as much research as possible in order to ensure that you are fully licensed and insured.
  7. Create a few accounts with local vendors - Since you're a new company, they're probably not going to give you a huge credit line. However, the sooner you open these accounts, the sooner you're able to have a reasonable amount of credit with the business.
  8. Build a website, or pay for a website to be designed for you. Make sure you have one.
  9. Get a dedicated phone line - Chances are, at first you will be working out of your garage or home office. Make sure to have a dedicated land line or cell phone specifically for the business. Keep your business and personal life as separate as possible.
  10. Put ads in the local papers, yellow pages, magazines, etc;. Make sure people recognize your company name.
  11. Buy a commercial vehicle is great to have. Get one.

Warnings

  • Make sure to be licensed and insured in your state.

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