Contractors & Trades

General contractors and trade businesses face licensing, bonding, and liability exposure — LLC formation is a foundational step.

Last reviewed: 2026-08-20 · General information only

Formation

Form in your operating state. Contractor licenses are separate from LLC formation.

Required for employees and most commercial bidding; recommended for subcontractor 1099 tracking.

State contractor licenses, bonds, and local permits vary widely by trade and municipality.

Track materials, subcontractor 1099s, equipment, and job-based expenses carefully.

Job costing helps with lien compliance and profitability on each project.

Insurance, bonding, workers' comp with employees, and annual state reports.