So many roofing companies fail before they even get going. Still, starting and running a roofing business is not hard when you do your research, work hard, and avoid the pitfalls.
However, it is essential to know some specific steps to initiate a roofing business in Ohio because this state does not have a statewide license for construction contractors, as licensing is regulated locally.
To help you out, here are some steps to consider when starting your roofing company in Ohio.
#1 Do the legal work
It is vital to form a business entity with the state to start your work. However, you must first choose your business structure (Sole-proprietorship, LLC or Corporation) to determine how you register the business with the state. Keep in mind that the factors you should consider when choosing a business structure will depend on your needs and wants for personal and tax liability and paperwork to comply with the company.
Then you need to do a business name search to ensure name availability before choosing one. Afterward, you can form your entity with your business name with the state.
Consider and plan to license, as each county’s building department covers residential work. Also, depending on the area, you may need to apply for permits before commencing certain types of roofing jobs.
Lastly, keep in mind that you may need to follow OSHA regulations depending on how many employees you plan to have.
#2 Get a business insurance
To protect yourself and your clients while doing your job, you will need business insurance. Getting an Ohio business insurance coverage helps you cover the costs associated with unexpected events such as physical injuries related to the business, damages to another’s person’s property, work-related car accidents, and accusations of professional negligence. In addition, without business insurance, you may have to pay out-of-pocket for costly damages and legal claims against your company.
To decide on your policy limits, consider factors such as the number of workers you plan to employ and the risks you will most frequently encounter.
#3 Obtain an EIN and open a business account
For your business to operate in Ohio (and generally in the USA), you must contact the Internal Revenue Service to get your Employer Identification Number (EIN). This unique nine-digit number is used to report employment taxes and for opening a separate bank account for your roofing company with your new business name.
#4 Find out about taxes and hire an accountant
Ensure you obtain information regarding Ohio taxes, including registration requirements, filing requirements, and filing due dates. This should be especially the case if you are a small company and want to file your taxes independently. However, keep in mind that it will be easier to have an accountant do the work as you grow. Plan ahead and ask for referrals because you want someone you can trust.
#5 Think finances and make a budget
When you start a roofing business, you want to stay on top of your business budget. The reason is apparent: having a detailed and accurate budget is a must if you are going to build a thriving, sustainable business.
The overview of your business’ finances should roughly include your income sources, fixed costs, variable expenses, and prediction of one-time spending. In addition, depending on your startup budget, you may need to apply for financing to help pay, for example, for equipment.
#6 Equipment and supplies
Before starting your roofing business, you will need to purchase the necessary equipment. This primarily includes:
- A suitable work vehicle;
- The necessary tools;
- Ladders;
- Scaffolding and safety gear.
Depending on your budget, you can also own or rent tools or heavy equipment such as hydraulic lifts and cranes. In addition, when it comes to roofing supplies, it is best to obtain them on a per-job basis.
#7 Create your brand and plan your marketing
As with any business, you want to make your company recognizable and show customers what your business is about. As a result, it is good to think in advance about your company logo, slogan, and other visuals you can use for promoting your company.
More importantly, to get your roofing business going, you will need to use multiple, strategically selected marketing techniques that work best with the services you offer and your location. Having a good marketing strategy often results in growth for your business.
Conclusion
Starting a roofing business in Ohio entails the same procedures and steps as any other business. Still, it is crucial to keep in mind the legal licensing needs specific to the area you want to operate. In addition, knowing what exactly is required to start a roofing company can help you be more strategic and mindful about managing your business and achieving success.
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