Free General Contractor Startup Checklist 2026 — License, Bond & Insurance

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General Contractor
Startup Checklist 2026

Everything you need to get licensed and win your first contract — requirements, insurance, bonds, and what it actually costs.

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This checklist is a free research guide for informational purposes only. It does not constitute legal advice or guarantee regulatory compliance. Requirements vary by state, city, and county — always verify current requirements with your local licensing agency. Information compiled 2026. Full disclaimer →

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Why this matters

GC licensing is the most financially intensive of any trade — most states require you to prove a minimum net worth ($10,000–$100,000+) and submit a full financial statement before you can even take the exam. Most new GCs don't find this out until they're already months into the process.

What's covered

✓State GC license — exam, experience, and financial requirements
Most states require 4+ years experience, a business/law exam, and a financial statement showing $10,000–$100,000+ net worth. Exam fees: $75–$500.
✓Business entity formation (LLC or Corp + EIN)
GCs should form an LLC or S-Corp — not operate as sole prop. Liability exposure on construction projects is enormous. LLC filing: $50–$500 by state.
✓City and county business license
In addition to state license, most cities and counties require their own registration. Cost: $50–$400/yr. Some jurisdictions require separate contractor registration.
✓Insurance: GL + Workers' Comp + Builder's Risk
GL minimum $1M (often $2M for commercial). Builder's Risk required on most projects. Workers' comp required for any W-2 employees. Total Year 1: $3,000–$12,000+.
✓Contractor license bond and financial statement
Bond amounts: $10,000–$100,000 depending on state and contract size. Annual premium: $100–$1,500. Financial statement must be prepared by a CPA in some states.
✓Subcontractor licensing and insurance verification
You are liable for your subs. Understand which trades require their own licenses and what certificates of insurance (COIs) to collect before work begins.
✓Contract templates and lien rights
Know your state's mechanic's lien laws before you start. File liens within the statutory window (often 60–90 days) or lose the right to enforce payment.
✓ Your first 90-day action plan
Week-by-week: from zero to licensed to first paying customer.

Startup cost breakdown

What you'll actually spend in year one — before your first invoice.

GC license exam + application fees	$200–$700
Financial statement (CPA-prepared, if required)	$300–$1,500
LLC/Corp formation + EIN	$100–$800
City/county business license	$50–$400/yr
GL + Builder's Risk insurance (Year 1)	$3,000–$12,000
Contractor license bond (annual)	$100–$1,500
Contract templates (attorney-reviewed)	$500–$2,000
Project management tools + equipment	$500–$5,000
Total estimated startup	$4,750–$23,900+

3 mistakes that cost new General Contractor contractors

These show up constantly. All avoidable.

✗

Not verifying subcontractor licenses and insurance before hiring

If your unlicensed or uninsured sub causes damage or gets injured, you're liable. Collect COIs from every sub before they set foot on your job site.

✗

Missing the state's net worth requirement

Many states require $25,000–$100,000 in verifiable net worth to obtain a GC license. Many applicants discover this after months of prep. Check your state's requirement on day one.

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Not filing a mechanic's lien within the statutory window

If a client doesn't pay, your lien right expires fast — often 60–90 days from last work. After that, you're stuck in civil court with no priority claim on the property.

-- Startup costs breakdown

-- Common mistakes to avoid

-- First customer strategies