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Discussion Starter · #1 ·
hello, Im looking to expand my business but dont know where to get start. Right now i just do "handyman work" as i dont have a license yet.

I live in PA and i heard they passed a new law requiring all contractors to be licensed. To get licensed i need to be insured. Can someone point me in the right direction on how to get started as im in school right now to get my electrical license and would like to have my business legit by the time i get the license.
 

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brm1109
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1. First got o the state and register your business, in New Jersey you need to do it in a couple of places. (I used LegalZoom and they take care of everything for you).
2. Shop around various insurance companies for the best quote.
#. You will need to come up with the money for tools and such (warning, banks are not lending right now).
3. Just keep trudging along and don't give up.
The average business takes 4-5 years before it starts to see a profit.
Good Luck
 

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Discussion Starter · #3 ·
ok thanks :thumbsup:, and also i see bonded used in advertisements. what does bonded mean? can it be used instead of insurance?
 

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brm1109
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I believe that bonding is an additional type of insurance. I don't have bonding but I do have general liability and workman's comp.
 

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Just look up bonding, in Washington everyone is required to have a registration bond. Then there are contract bonds which are optional, those are job specific ones which can include payment bonds, performance bonds, bid bonds, there are about ten different kinds of contract bonds.

Generally bonds are used when there is a breach in contract, insurance is used when you make a mistake and do damage to the building. But they are both used interchangeably.
 

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Master Tile Mechanic
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General Liability = Homeowner comes around the corner and gets whacked in the head with a 2x4. Or falls thru your floor.
Workers Comp = Your helper falls off the roof.
Bond = You suck and did a bad job, homeowner sues and bond company pays to your limit insured. Also, for a GC, first line of funds when you crap out and don't pay your subs or suppliers.

Some Gen Liab companies will step up to the plate if you get sued for that window that leaked and brought the termites and ate the house. They should not (that's bond territory), but some do. This results in higher premiums for all. There was a supreme court case about 3-4 years ago that stated they are not liable for this, but some companies don't seem to understand.
 

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hello, Im looking to expand my business but dont know where to get start. Right now i just do "handyman work" as i dont have a license yet.

I live in PA and i heard they passed a new law requiring all contractors to be licensed. To get licensed i need to be insured. Can someone point me in the right direction on how to get started as im in school right now to get my electrical license and would like to have my business legit by the time i get the license.

Pennsylvania doesnot have a licensing requirement. PA does have a registration requirement. I have my registration so I'm a little unclear on the limits but I believe any job over $500 or $2000 total for the year in residential work requires a registration number from the Attourney General. Unless they've made some exemptions, the neighbor kid mowing grass who makes more than $2000 in a year must be registered. It's $50 for two years and the insurance requirement is only $500,000. My 18 yr old son got that much insurance for $500 a year (minimum billing). BTW the amish have to be registered just like the rest of us.
 
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