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Texas

Workers comp for Texas contractors

Texas is the one state where workers compensation is optional, and opting out changes what you can be sued for. These guides cover subscribing and not subscribing, what a general contractor will require of you either way, and the certificate that proves whichever answer you picked.

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6 guides on this

How to run the businessStart a Texas construction businessTexas does not license general contractors or tax your income, so the gap between deciding and invoicing is a week of filing. Every stage in order with its cost: the $300 Certificate of Formation, the free sales tax permit, the 15 May franchise report, the comp choice, and what each big city charges to register.How to run the businessWhat an hour costs you in TexasTexas puts four lines on a payroll hour: Social Security, Medicare, FUTA after the state credit, and TWC unemployment on the first $9,000. A $30 hand costs $32.43 before workers comp, which Texas alone makes elective. Includes the billable-hour division and the 1099 crossover.How to run the businessWorkers comp is optional in TexasTexas is the only state where a private employer can decline workers compensation. Subscribing buys the exclusive remedy under Labor Code s.408.001; going non-subscriber keeps the premium but strips three defences under s.406.033. Decision table, the DWC Form-005 calendar, and the GC clause that usually settles it.How to run the businessYour COI is the Texas licenseTexas issues no contractor license, so the certificate of insurance decides whether you get on the job. Get the general liability limits Texas GCs ask for, the additional insured endorsement the certificate alone does not give you, and the state minimums for electrical, HVAC and plumbing under 16 TAC 73.40 and 16 TAC 75.40.How to run the businessGet on Texas GC bid listsTexas issues no GC licence, so the bid list is the gate. Here is what a Texas prequal packet asks for, from the Comptroller certificate of account status to the EMR box a non-subscriber cannot fill, plus which estimator to call and when. Houston and DFW are two different lists.How to run the businessRunning a 1099 crew in TexasTexas has no state wage withholding and workers comp is elective, so a crew of subs is the normal shape. The kit that holds it: W-9 before the first check, the COI you actually read, Labor Code s.406.123 and DWC Form-083, and the 1099-NEC at $2,000.

The rest of the Texas library

Texas contractor licensingBidding and prequalification in TexasPricing construction work in TexasGetting paid on Texas constructionTexas lien rights and deadlinesContractor insurance in TexasRunning a construction business in TexasStarting a construction business in Texas
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