Before the first job comes the structure. Entity, EIN, license, insurance and the right way to hire. The map to start without tripping on the basics.
By Miriam Matos · FourRise ConsultingMany Brazilian contractors arrive in the United States and start with the work. They take the first job, do it well, the client refers them and the schedule fills up. The work is there. What's usually missing is the structure underneath it: the registered company, the right numbers and the documents that make banks, clients and insurers take you seriously.
In the United States, structure comes before size. It's what unlocks credit, big contracts and insurance. Without it, you grow on effort and stall in the same place.
This is the map of the beginning. It doesn't replace an accountant or a lawyer, but it shows the right order of the pieces so you don't trip on the basics.
Before anything else, three acronyms. They are not the same thing and each has a function:
| SSN | Social Security Number, for citizens and residents. It identifies you as an individual before the government. |
| ITIN | Taxpayer number for those not eligible for an SSN. It allows you to file taxes, open an account and start a business. It does not authorize work. |
| EIN | The company's number. It identifies your business before the IRS, and lets you hire, open a business account and invoice. It's free and comes directly from the IRS. |
The good news: you don't need an SSN or an ITIN to get an EIN. Immigrants, regardless of status, can open and own an LLC in the United States. Always confirm the details for your state with a professional.
If you do residential remodeling in Massachusetts, two items are usually required: the Home Improvement Contractor (HIC) registration and, for structural work, the Construction Supervisor License (CSL). Add liability insurance and workers comp when you have people on payroll. Each state has its own rule, so confirm yours.
When it's time to put people to work, you'll run into two letters and a number: W2 and 1099. The choice changes tax, cost and risk, and classifying wrong turns into a fine. This deserves its own attention, and we cover it in the article on W2, 1099 and ITIN.
Mixing personal money with the company's. You pay for materials with your personal card, pull from the company account for a home expense, and at the end of the month no one knows if there was a profit. Separating personal and business is the first step to see the business, and we explain it in full here.
This is general guidance, not legal or accounting advice. Before registering the company and deciding how to hire, confirm your state's rules with a trusted accountant or lawyer.
Opening the company is the beginning. Keeping the numbers organized from day one is what sustains growth. The managerial accounting from Nexus helps structure entity, tax and control so your business is born in the right place.
Learn about Nexus →In under 5 minutes, find out where your company stands, what is blocking growth and what the next structured step is.
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