When planning to start a Texas business, the steps are similar to creating one in the United States. However, for starting construction work in Texas, licenses and permits needed are based on Texas.

When starting a construction company in Texas, it is a bit simpler compared to the other states. However, you must understand and grasp the laws and regulations that govern it by doing proper research for you to succeed. Below are vital measures to undertake for you to start a construction company in Texas.

Research the Texas construction market

Start by doing market research to help you understand the competition in the market. Know how many construction companies are operating, what they do, how they price their services and know their loopholes. Understand who you want your customers to be and know their interests.

Use different research methods such as questionnaires, surveys, interviews, and focus groups to understand the market.

Develop a concrete business plan

Write a business plan that encompasses all the details of your business. Generate a quality idea for your business, know your target audience, research marketing trends, and identify available growth opportunities. The business plan needs to be very detailed to help you correctly structure your business.

Your business plan should have details on how you plan to structure and manage your business, the services you will offer as a construction company, the number of employees to acquire, your marketing tactics, estimate cost for starting your business, and other important KPIs.

You would also need to include what you intend to achieve in your first year of business and what you want to earn.

Select the right business structure

There is the creation of Interactions (News - Alert) in different forms such as sole proprietorship, general partnerships, limited liability companies, corporations, limited partnerships, and limited liability partnerships.

It would be best to make a concrete decision regarding your business structure by consulting an attorney and an accountant. Take into consideration issues on tax, management, liability, ownership transferability, and formality of operations.

To take you through the different forms:

Sole proprietorship involves an individual engaging in a business activity without the necessity of having a formal organization.

General partnerships involve two or more parties coming together and deciding to start the business for for-profit purposes. The company operates according to a partnership agreement.

Limited Liability Company has both partnerships and corporation powers. A limited liability company is created in Texas by filing a formation certificate with the state's Texas secretary. The secretary of state will then provide you with a form that meets all the state of law requirements. The owners of the limited liability company are known as members. A member can be an individual, commercial entity, partnerships, or a corporation.

Corporation involves shareholders and directors who manage the affairs of the corporation and businesses. In Texas, a corporation is created by filing a certificate formation with the texas secretary of state.

Limited partnerships involve two or more people with one or more general partners and limited partners, forming it. It operates according to a partnership agreement, either oral or written. However, the limited partnership needs to register by filing a certificate of formation with the state's texas secretary.

Limited liability partnerships involve limiting the liability of its general partners.

After understanding the different forms of business structure, decide on one that best suits your company.

Register business name

After deciding on the business structure, register your business name. But first, decide on the character that suits your construction company. Do thorough research and ensure that another company has not reported the title you have chosen; finally, write the one you have settled with and register.

Register your business

To obtain a business license number, register your construction business with the texas department of revenue. Be it a legal entity, corporations, partnerships, or individuals all need to apply. It is also essential to obtain a sales tax permit.

Obtain a license

Get your license from the Texas Department of Licensing and Regulation. If your construction business deals with pump installations, plumbing, well drilling, or electrician jobs, you will need to acquire proper training for each license. For your construction company to obtain different permits, it would be best to contact the various departments in charge. Also, obtain city-county permission.

Hire employees

Hire employees who will help you run your business. Know their qualifications, track record, and their experience in the construction business to help you select the best.

Create a website

You would need to set up a website for your construction business. This website will help in marketing your business. It is a great platform for customers to acquire more information about your company, what you offer, and they can get your contacts. Ensure the website is keenly customized to attract customers.

Acquire a construction software

A construction certificate will help with the growth of your business in different forms. It will allow you to acquire great visibility and control over your business from leads, sales, and tasks through a single program. Through the software, you will create estimates, place orders of materials needed, empower your employees to complete tasks on time, and help you automate the system for easier workflow.

Get insurance and Liabilities.

Consider acquiring insurance for you and your employees. Construction work involves many risks, and acquiring insurance will ensure that you are covered from any potential injury. Any construction business owners need to understand all the liability involved fully. If you are considering starting a construction business in Texas, do thorough research on the available insurance and liability and choose which one will best suit your business.

Acquire Necessary Funding

It is a necessity to ensure you have money that you will use to fund your business. You can either use your savings or secure funding through private lenders, loans from banks or government, or government funding programs. There is a full list of sites on the USA government site where you can acquire loans; you can check it out.

Construction business profit margins are always low. The construction billing circles are always almost irregular. It is vital to have cash flows for your business. Keep in mind to always think ahead and figure out how you will fund your projects.

Enhance your Business Growth

Understand that you, as a business, need to establish a good customer relationship, loyalty, and company reputation for a business to grow. Your goal needs to be for every project you complete and ensure you and your clients are on good terms. For you to establish this, be honest, and have an effective communication channel. Always ensure your clients know how long the projects would take and update them all through the process.

In your contracts, have clear project timelines, payment terms, and estimates on work scope. All this should be in a written form for proof.

When you become open and accountable with your clients, the more you establish a mutual relationship and hence the probability of more working projects together.

Final Thoughts

Starting a construction company in Texas is more like starting any other business, but the difference is the licenses issued. It is not always an easy process, but it can be rewarding. The closure rate for some construction companies in their first five years can be high. It is best to understand the market and your target audience, know your competition, and understand the market's loopholes. Getting the needed information will help you make a valuable decision. Start on a strong foundation and stay successful.