Your construction business starts here: the first steps in the United States
Structure comes before the first job. Entity, EIN, license, insurance and the right way to hire. The map to get started without tripping over the basics.
Many Brazilian contractors arrive in the United States and start with the work. They take the first job, do it well, the client refers them and the schedule fills up. The work is there. What is usually missing is the structure underneath it: a registered company, the right numbers and the documents that make banks, clients and insurers take you seriously.
In the United States, structure comes before size. It is what unlocks credit, large contracts and insurance. Without it, you grow through effort and get stuck in the same place.
This is the map for getting started. It does not replace an accountant or an attorney, but it shows the right order of the pieces so you do not trip over the basics.
The numbers that identify you and your company
Before anything else, three acronyms. They are not the same thing and each one has its own purpose:
| SSN | Social Security Number, for citizens and residents. It identifies you as an individual to the government. |
| ITIN | Taxpayer number for those not eligible for an SSN. It allows you to file taxes, open an account and start a business. It does not authorize work. |
| EIN | The company's number. It identifies your business to the IRS and allows you to hire, open a business account and invoice. It is free and issued directly by the IRS. |
The good news: you do not need an SSN or an ITIN to get an EIN. Immigrants, regardless of status, can open and own an LLC in the United States. Always confirm the details for your state with a professional.
Opening the company, step by step
- Choose the entity. The LLC is the most common for contractors: it separates your personal assets from the company's and is simple to maintain.
- Register with the state. The LLC is registered in the state where you operate. In Massachusetts, with the Secretary of the Commonwealth.
- Apply for the EIN. Directly on the IRS website, free of charge. It is what lets you open the business bank account.
- Open the business account. Separate from your personal account. This is the first step to seeing your real profit.
- Get your license and insurance. They vary by state and by type of work. Without them, large contracts never even reach you.
License and insurance in Massachusetts
If you do residential remodeling in Massachusetts, two items are usually required: Home Improvement Contractor (HIC) registration and, for structural work, the Construction Supervisor License (CSL). Add to that liability insurance and workers' comp when you have people on payroll. Each state has its own rules, so confirm yours.
Hiring the right way
When you put people to work, you will run into two letters and a number: W2 and 1099. The choice changes tax, cost and risk, and misclassifying leads to fines. This topic deserves its own attention, and we cover it in detail in the article on W2, 1099 and ITIN.
The most common mistake at the start
Mixing personal money with company money. You pay for materials with your personal card, take money from the company account for household expenses, and at the end of the month no one knows if there was a profit. Separating personal and business is the first step to seeing your business clearly, and we explain it in full here.
This is general guidance, not legal or accounting advice. Before registering the company and deciding how to hire, confirm your state's rules with an accountant or attorney you trust.
Discover your business phase
The Business Score organizes your answers and gives you an initial reading: indicated phase, observed signals and the main point of attention.
Founder of FourRise Consulting. Business owner with direct experience in the construction sector in the United States and creator of the F.O.U.R. Method.