🛠 Helping Residential Contractors & Subs Build Smarter, Work Safer, and Grow Faster
Today’s Rundown
🔹 Construction Site Safety Violations Are Rising – What You Need to Know
🔹 The Best Business Structure for Contractors: LLC vs. S-Corp
🏗️ Feature Story: Safety Violations Are on the Rise – Protect Your Crew & Business
📉 What’s Happening?
OSHA has reported an increase in safety violations across residential construction sites this year. The most common infractions?
🚧 Fall protection failures – Missing guardrails, unsecured harnesses
⚠️ Ladder & scaffold issues – Improper setup leading to accidents
🔌 Electrical hazards – Exposed wiring, improper grounding
These violations don’t just put workers at risk—they can lead to massive fines and project shutdowns.
📌 Why It Matters:
A single serious OSHA violation can cost up to $16,000—repeat offenses go even higher.
Lost workdays from accidents kill productivity and delay projects.
Injury claims drive up insurance premiums, cutting into your margins.
💡 Take Action:
✅ Hold mandatory weekly safety check-ins—a 10-minute talk can prevent major issues.
✅ Assign one crew member as a safety lead to inspect PPE, fall protection, and work areas daily.
✅ Review OSHA’s top violations and ensure your sites are compliant.
🚀 Pro Tip: Keep digital safety records (photos, reports) in case OSHA audits your site.
🏗️ LLC – Generally Best for Small & Growing Contractors
✅ What It Is:
An LLC is a flexible business entity that offers personal liability protection and minimal paperwork while allowing profits to be taxed directly on the owner's personal tax return.
✅ Who It’s Best For:
✔️ Solo contractors, small construction businesses, and subcontractors looking for simplicity and liability protection.
✔️ GCs or subs not making over $100K+ in net income (yet).
✅ Key Benefits:
✔️ Easy to set up and maintain – Fewer formalities than an S-Corp.
✔️ Flexible profit distribution – Owners (members) can allocate profits however they want.
✔️ No ownership restrictions – Foreign members, corporations, and other LLCs can own shares.
📌 Downside: LLC members must pay self-employment tax (15.3%) on all profits, which can be costly as income grows.
📌 Downside: Less appeal to outside investors due to its non-corporate structure
🚧 S-Corp – Generally Best for Contractors Earning $100K+ in Profit
✅ What It Is:
An S-Corp is a corporation that elects special tax treatment with the IRS, allowing business owners to reduce self-employment taxes by splitting their income between salary and dividends.
✅ Who It’s Best For:
✔️ Contractors making $100K+ in net profit who want to save thousands in taxes.
✔️ Construction businesses planning to grow, hire employees, or attract investors.
✅ Key Benefits:
✔️ Big tax savings – Owners only pay self-employment tax on their salary, not their entire profit.
✔️ More credibility – Some GCs, lenders, and investors prefer working with corporations.
✔️ Still provides liability protection like an LLC.
📌 Downside: S-Corps have stricter rules, including:
❌ Ownership restrictions – Limited to 100 U.S. citizens/residents (no foreign owners).
❌ Required payroll & reasonable salary – Owners must pay themselves a fair wage.
❌ More compliance costs – Annual filings, corporate bylaws, and meetings are required.
🚀 Take Action This Week
✅ Talk to an accountant to see if switching to an S-Corp makes sense in 2025.
✅ If you’re just starting, register as an LLC for flexibility and liability protection.
💡 Bonus: Want a step-by-step guide on switching from an LLC to an S-Corp? Let me know, and I’ll draft one! 📑💰
🛠️ Quick Bites
📌 Business Tip: LLC vs. S-Corp – Which One Is Better for Contractors?
💰 If you're running a one-man shop or small team, an LLC is easier & offers liability protection.
📈 If you’re making $100K+ in net income, an S-Corp can save thousands in self-employment taxes.
➡️ Consult an accountant to see if switching your business structure makes sense in 2025.
😂 Contractor Humor: “Why did the construction worker bring a ladder to the bar? He heard the drinks were on the house!”
📣 Call to Action
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👷♂️ Stay safe, keep building smarter!
— Benjamin Patton