How to Start a General Contractor Business in Texas: Step-by-Step Guide
- Nate Jones
- 7 days ago
- 3 min read
Updated: 8 hours ago
Starting a general contractor business in Texas offers significant growth potential. Construction demand continues to rise in Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso, creating steady opportunities for new and experienced contractors. This guide covers every step to launch legally, build credibility, and operate profitably.
1. Understand Texas General Contractor Requirements
Texas does not have a statewide general contractor license. However, many cities require registration, permitting, or project-specific approvals.
Examples:
Houston requires specific permitting for structural and renovation projects.
Dallas may require project-based permits depending on scope.
San Antonio requires registrations for home improvement and building work.
Explore More: Texas Department of Licensing & Regulation (TDLR)
2. Form Your Legal Business in Texas
Choose a business structure that protects your personal assets and provides flexibility.
Common structures include:
Limited Liability Company (LLC)
Sole Proprietorship
Corporation (S-Corp or C-Corp)
Next steps:
Register with the Texas Secretary of State
Obtain your EIN from the IRS
3. Get the Required Insurance
Every general contractor in Texas should carry the following:
Covers property damage, bodily injury, and job-site accidents.
Not required statewide but strongly recommended to protect employees and reduce liability.
Covers trucks, vans, and other vehicles used for transporting tools, materials, and crews.
Protects tools and equipment from theft, loss, or damage on and off the job site.
Covers claims arising from errors, omissions, or mistakes in your work that cause financial loss to clients.
To secure all required policies in one place, One Hampton Insurance offers contractor-friendly packages tailored for Texas builders. Visit One Hampton Insurance to request a quote.
4. Set Up Operations and Back-Office Systems
Administrative systems help you run a professional and compliant contracting business. These include:
Estimating and bid management
Phone and email support
CRM setup and management
Invoicing and bookkeeping
Website and SEO management
Job scheduling and project tracking
5. Register for Taxes
Depending on your services and business structure, you may need:
A Texas sales tax permit
Payroll tax registration
Local business tax accounts (varies by city)
Registration is handled through the Texas Comptroller’s office.
6. Build Your Marketing Presence
To compete in major Texas cities like Houston, Austin, Fort Worth, and San Antonio, you need a strong marketing foundation.
Effective strategies include:
Launching a professional website with Texas-focused SEO
Creating and optimizing a Google Business Profile
Listing your business in contractor directories
Gathering customer reviews
Running paid ads and Local Service Ads
Networking with realtors, builders, and property managers
Need help running your contracting business? Contractor Back Office handles your SEO, website updates, social media marketing, bids, invoicing, bookkeeping, CRM management, and scheduling, so you can stay focused on job sites.
7. Create Clear Contracts and Accurate Estimates
Professional contracts protect your business and reduce disputes. Include:
Detailed scope of work
Project timeline
Materials list
Payment schedule
Change order process
Warranty details
Accurate estimating tools and templates help prevent underbidding and protect your profit margins.
Final Thoughts
Launching a general contractor business in Texas requires planning, compliance, and proper insurance. With the right structure, systems, and marketing approach, you can build a strong and profitable operation. For dependable contractor insurance, One Hampton Insurance is a trusted resource. For marketing, SEO, CRM, invoicing, and back-office support, Contractor Back Office provides the operational help contractors need to grow.
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