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If you have enjoyed playing Jenga as a child and decided to turn this into a business, then you may have considered starting a demolition business. Starting a business is completely achievable, but you will need to follow local, state, and federal law. In this case, you will need licenses for demolition. At Rock Saws, we can help you understand what you need to have in order to stay in compliance. 

Licenses and Permits

Depending on your location, as well as your state, county, or local municipality, there are different licenses and permits that need to be obtained. In some cases, they might require your company to have a license as a demolition contractor. When it comes to specific jobs, there are sometimes needs to have demolition licenses or permits specifically on behalf of your clients. 

If your company handles demolition sites that work with asbestos or other hazardous materials, then you will need to obtain the appropriate certification regarding that type of operation for yourself, as well as your staff and your equipment. For many demolition jobs, your company may need to obtain a performance bond. Sometimes letters of credit are necessary as well.

What You Need to Start a Demolition Business

Demolition Crew

It is possible to operate a demolition company as one person, but it is much easier if you have other people to work with you. Sometimes jobs such as those that work with asbestos and other hazardous materials require special equipment and a trained crew. Other times it is pretty simple to hire general construction laborers. This gives you an advantage over other general contractors because you will not need to pay them the same as you would other “skilled” tradespeople. 

Demolition Equipment

Having your own demolition equipment can be expensive, but it can provide significant cost savings later on. While starting out you may consider renting most of your equipment. You should definitely have a work vehicle, as well as basic tools, such as hammers, grapples, and shovels. The next tools you might look to purchase would be concrete pulverizers, hydraulic tools, and explosives. If your company handles hazardous wastes, then you will also need protective gear.

Insurance and EIN

If you operate as a partnership, an LLC, or a corporation, then you will need to obtain an employer identification number (EIN). This is similar to a social security number (SSN) but for your business. It comes from the Internal Revenue Service and is free.

You need an EIN in order to hire employees. This can be contractors or staff, but you will need to be able to give them workers compensation benefits should something happen. It is essential you have insurance in case of a loss, or if someone requires medical care.