Do you want to know the legal requirements you need to start a property preservation business? If YES, here is a checklist of property preservation business licenses, permits & insurance.
Having provided you with a:
- Property Industry Overview
- Market Research and Feasibility
- Property Preservation Business Plan
- Marketing Plan
- Property Preservation Name ideas
- Licenses and Permits
- Cost of Starting a Property Preservation Business
- Marketing ideas
We will consider what it takes to get operating license and permit for your property preservation business including insurance coverage and intellectual property protection.
Getting a Property Preservation Business License, Permit & Insurance
- Best legal entity to use for a Property Preservation business
Choosing a legal structure for your property preservation business is paramount if you want your business to be noticed by banks and financial institutions. A legal structure is that which protects you from any form of personal liability, and also assures the banks that you are taking the business seriously.
There are majorly four types of legal entities available for you to consider when starting your property preservation business. However, before you decide on which, it is advisable you meet an attorney who will guide you on what is best for you and your company in the long run.
The four major types of entity include; sole proprietorship, partnership, limited liability companies, and corporations. It is worthy to note that incorporating your business in the sole proprietorship or partnership structure will open you up to personal liabilities.
While a corporation and limited liability company is okay, most attorneys would advise you to choose a limited liability company, especially as it would raise the image of your business and prestige and allow banks see your business as a formal entity that is respected, something that neither a sole proprietorship or partnership can give you. This does not mean that as a sole proprietor or partnership, you cannot later change to a more befitting legal structure for your business.
List of Legal Documents You Need to Run a Property Preservation Business
Below are the documents you would need for you to start your property preservation business in the United States of America;
- Business License
- Certificate of Incorporation
- Sales Tax ID
- Federal Tax ID
- Insurance Policy
- Contractor’s License (Optional)
Is Professional Certification Needed to Start a Property Preservation Business?
No, the property preservation business does not require a professional certification before you can start it in the United States of America. All it requires is that you are ready whenever you are contacted.
Property preservation businesses help banks to clean out and preserve foreclosed homes, thereby getting them ready for sale. However, if you are into structural repairs, such as helping to rebuild walls, then you might need a contractor’s license so that banks can be sure of your competence. Otherwise, the business does not need a professional certification.
The Best Insurance Needed for a Property Preservation Business
The property preservation business is one that has boomed over the years, as more and more new property preservation businesses have joined the market. Working primarily on foreclosed and bank-owned properties means that there are strict rules and regulations that must be followed; these rules and regulations are usually from the bank, local as well as state laws.
The insurance policies that you will then need for your business will be one that would be best decided on by knowledgeable insurance agent or brokers, who will provide you with certain options that will be best for your business.
Below is a list of the basic insurance policies that you would need when starting your property preservation business in the United States;
- Builder’s Risk Insurance
- General Liability Insurance
- License bonds and Permit Bonds
- Property Insurance
- Commercial Auto Insurance
- Business Owner’s Policies
- Professional Liability Insurance
- Inland Marine Insurance
- Workers’ Compensation Insurance
- Excess Liability Coverage
Does a Property Preservation Business Need Intellectual Property Protection?
If you have decided to go into the property preservation business, then the truth is you do not need an intellectual property protection. However, if you have a business name or logo you feel it is worthwhile to protect, you might then apply for an intellectual property protection. However, most property preservation owners do not bother with intellectual property preservation, as they do not consider it essential.