Construction needs 349,000 more workers in 2026. If you're thinking about going out on your own, here's the setup checklist.

Hey, it's the editorial team at SimplyWise. We just published a step-by-step guide on starting a construction business, and one number frames the whole thing: Associated Builders and Contractors estimates the industry needs to attract 349,000 additional workers in 2026. The work is there. What trips people up is the setup.

The short version:

Licensing depends entirely on your state. California, Arizona, and Nevada license general contractors statewide. Texas leaves it to the cities. Know your state board before you quote your first job, because in California unlicensed work is a misdemeanor and clients cannot be forced to pay you.

The legal skeleton is cheaper than it looks. An LLC typically costs $50 to $500 to file, and the EIN is free direct from the IRS in about ten minutes. Never pay a third party site for it.

Insurance before the first job. General liability is the floor, and workers comp the day anyone who is not an owner steps on site.

Price with the margin decided up front. Labor, materials, equipment, overhead, then margin. New contractors routinely underbid, sometimes by 20 to 30 percent, and that gap is the difference between a business and an expensive hobby.

Keep the books clean from day one. Separate account, every receipt tracked, and quarterly estimated taxes on the calendar: April, June, September, January.

The full 8-step guide is here: https://www.simplywise.com/blog/how-to-start-construction-business-2026/

For the folks who went out on their own: what part of the setup do you wish you had done differently in year one?