Thinking of Setting Down a New Flag? What Must a Contractor Know When Expanding to a New Region?
During periods of growth and diversification, contractors often look to new geographic regions as part of their strategic business development. When expanding to a new region, contractors must examine several risk and operational considerations before setting down that flag and opening a shop. It serves contractors well to establish their own internal checklist to account for licensing, requirements, regulations, tax implications, market conditions, and personnel adjustments before breaking ground on business. Even relocating to another city within the same state may present unique changes. Thus, knowing what to include on that checklist allows contractors to hit the ground running and focus on building their portfolio rather than becoming mired in bureaucratic red tape or worse.
With any expansion, contractors should first complete their business registration and proper licensure with states and local governments. Many states require construction companies to obtain separate contracting licenses before performing any construction in a new state. Some states even require licensure before bidding on work. Contractors must therefore verify the laws and regulations of the jurisdiction before engaging in any business in that new locale.