Business and Contracting Basics for Tradespeople

Thinking ahead to run jobs—or your own shop—starts with the basics. Learn what changes when you move from tech to lead to owner.

Licensing and Registration

• Contractor license requirements vary by state and city—verify early
• Business registration (LLC/sole proprietorship) and tax IDs

Insurance and Risk

• General liability, workers’ comp, and commercial auto
• Bonding for certain public or large projects

Estimating and Bids

• Scope clearly: materials, labor hours, permits, disposal
• Add overhead and profit; document assumptions and exclusions
• Use takeoff checklists; track actuals vs. estimates to improve

Permits and Inspections

• Know local code processes and timelines; schedule inspections early
• Keep a clean jobsite and clear notes for inspectors

Customer Basics

• Clear proposals, change orders, and payment milestones
• Communication cadence; photos of progress and final walkthrough

Grow Responsibly

• Hire slowly; train on safety and quality
• Build supplier relationships and credit terms

Related Guides

• Hub: Trade School Hub
• Paths: By Career
• Licensing: Certifications & Licensing

Explore Related Topics:

• Accessibility and Accommodations in Trade School
• Accreditation and Approvals for Trade Schools
• Trade School Admissions Checklist
• Apprenticeship vs. Trade School
• Automotive Technology: Training and Entry-Level Certifications