Going Out on Your Own: The Paperwork Checklist for New Contractors

You know the trade. The business side is the part nobody teaches you on a crew. Here is the short list of things to set up before your first paying job, so you look professional and keep your money straight from day one.

Before the first job

• License. Requirements depend on your trade, your state, and sometimes your city. Check with your state licensing board before you take work.
• Insurance. General liability at minimum. Many customers and property managers will ask for proof.
• Business structure. Sole proprietor, LLC, or something else. A quick talk with an accountant is worth it here.
• EIN. A free federal tax ID from the IRS. Handy for a business bank account and for W-9s.
• Business bank account. Keep job money separate from personal money. It makes taxes far easier.

Before the first bill

• Your rates. An hourly rate that covers your truck, tools, insurance, and time, not just your old wage.
• Payment terms. When payment is due and how you take it.
• Deposit rules. How much up front for bigger jobs, especially when you are buying materials.
• An invoice that looks the part. Your name, the job, clear line items, and a way to pay.

Take cards from day one

New contractors often lose jobs to "I will mail you a check." A card payment link turns that into "I paid you on my phone." It also looks established, which matters when you do not have years of reviews yet.

Keep it simple

You do not need expensive software to start. EZ Invoices has a free plan for your first invoices, with no card needed. Pick your trade, fill in the job, and send it from your phone. Upgrade later when the work grows. This post is general information; your state's licensing and tax rules may differ.