Starting Your Own Construction Business—Is It Worth It?

You likely know of a friend or a family member who started their own business as a contractor. The construction industry is overflowing with lucrative business opportunities for people who take business ventures seriously, but before throwing yourself into the deep end, you might want to know if this career path is right for you.

How can you register a business and what are the key steps? What advantages and challenges should you expect by starting a construction business? Here’s a general overview to help you make a well-informed decision prior to delving into this new career opportunity. 

What Are the Advantages and Disadvantages of Being Self-Employed?

Owning a business comes with a slew of advantages. You have a say-so regarding your customer base, rates, and work schedule, which makes balancing family-work life much easier, especially if that’s something you want to prioritize.

A sole proprietorship is also relatively cheap to run, which is especially beneficial when first launching; you’ll only need to upkeep your tools and get the necessary job materials, but you’re already skilled and are likely to be your company’s only employee, at least initially. Expected startup costs usually go toward opening a file with the Régie du bâtiment du Québec (RBQ) or the Commission de la construction du Québec (CCQ).

If you, over time, find that you can’t do all the work yourself, you can venture into a partnership or hire labourers to help, giving you total control over associate hiring. It’s exactly how many family-owned businesses get started!

You can proceed as you wish, managing all company-related aspects based on your short-, medium-, and long-term goals.

Employee vs. Self-Employed Status: What Are the Challenges of Being Self-Employed?

We already mentioned that a sole proprietorship lets you have a degree of control over all aspects of your company. However, it might be more accurate to say that you don’t have a choice but to manage all aspects of your company yourself. You can never turn a blind eye to anything… You have to be willing to use or learn managerial skills otherwise, you risk not being about the manage everything properly in the long run. 

At times, a sole proprietorship can be a source of stress, especially when facing periods of downturn, with fewer customers requiring your services. In such situations, you’ll have to ensure that your personal finances are in order in preparation for eventual lulls.

Moreover, being a business owner, you’re the sole person responsible for knowing and complying with current, trade-specific by-laws, rules, and standards. Should you fail to carry out work the right way, from start to finish, you’re opening yourself up to the possibility of legal action.

How to Start a Company as an Independent Contractor in Canada

When starting a construction company, note that you’ll have some administrative duties to carry out before opening up shop.

First, you’ll need to register your business with your local business registry (Registraire des entreprises du Québec, for example) if your business requires it. Given that it’s very unique to your business, we highly recommend reaching out to your local business registry to register your business the right way. 

Afterwards, you’ll have to obtain a contractor licence (RBQ licence, for example). In Quebec, if you specialize in plumbing and heating, the Corporation des maîtres mécaniciens en tuyauterie du Québec (CMMTQ) issues said licence. For contractors specializing in electricity, it's handled by the Corporation des maîtres électriciens du Québec (CMEQ).

Lastly, you have to register your business with the Commission de la construction du Québec or with your provincial construction board.

Note that there are administrative expenses to factor in, such as registration and exam fees, so bear this in mind when planning the launch of your business. You may also decide to seek financial assistance to help start your business. As a Canadian citizen, you're likely to have access to a slew of information about employment insurance as an independent contractor. If needed, the RBQ has a cost simulator (French only) to help you get a better idea of the costs involved. You can also visit the Canada Revenue Agency for income tax information now that you're self-employed.

How to Launch a Business the Right Way: Work Benefits

Even though self-employment affords you a great deal of freedom, there’s a lot of planning that goes into it. The key to a thriving self-employed career is organization!

Do labour market research in your surrounding local areas before even thinking about launching your business. That way, you can visualize your potential profit margin and realistic take-home income.

The point of self-employment is being able to constantly mould yourself around your goals and workload, alongside your personal life. 

However, it’s not something that’s suited to everyone: ask yourself the right questions and figure out from the get-go what you’re looking to accomplish by starting your own business, ensuring you’re making the right decisions along the way to achieve your goals. 

Interested in a career as a construction contractor in Quebec? Check out our article Steps for Becoming a Construction Contractor in Quebec.

FAQ

What qualifies as self-employed in Canada?

In Canada, a person is considered self-employed when they legally operate their own business, hiring out their services with companies or persons. They may be entitled to self-employment benefits, such as the Parental Insurance Plan. 

What defines an independent contractor?

Independent contractors are hired to carry out services and are paid once their part of the contract is met. Independent workers choose their wages, work schedules, and contracts.