Getting Started on Your Colorado Roofing Contractor Business

Are you thinking about entering the roofing industry, or looking to expand into a fully operational roofing contractor business? Look no further! We’re here to guide you through the process, from understanding the basics of roofing contracting to joining our esteemed association. Whether you're new to the industry or looking to expand your roofing business, the Colorado Roofing Association has you covered.

What Does A Typical Colorado Roofing Contractor Do?

Roofing contractors play a vital role in inspecting, repairing, replacing, and installing roofs for homes and businesses. From safety and repairs to new roof installations and efficiency improvements, roofing contractors handle a wide range of tasks to ensure the integrity and longevity of roofing systems, including:

• Inspect problem roofs to determine the best way to repair them

• Measure roofs to calculate the quantities of materials needed

• Replace damaged or rotting joists or plywood

• Install vapor barriers and/or layers of insulation

• Install shingles, single-ply, asphalt, metal, other materials to make the roof watertight

Whether it's managing the larger scale and complexity of commercial roofing or addressing the detailed aesthetics of residential homes, roofing contractors are committed to delivering high-quality results tailored to the unique needs of each project. 

For more information, check out our downloadable resource, What Does a Roofer Do?

Licensing and Training Requirements in Colorado

Before diving into the world of roofing, it's essential to understand the licensing and training requirements in your area. Licensing requirements vary by state and municipality, with some areas requiring a roofer's license or contractor's license for commercial or residential work.

In the state of Colorado, there is no state roofing license or registration mandate specifically for roofing contractors. Instead, roofing contractors fall under the broader category of general contractors, exempting them from the necessity of obtaining a Colorado state license. However, it's important to note that in most Colorado municipalities, particularly larger cities, roofing contractors undertaking roof installation or repair must possess a license, provide proof of insurance and have passed a nationally recognized roofing knowledge exam. In rural regions, permits for roofing work are more common, even in the absence of licensing requirements.

Whether in urban or rural locales, it's crucial for homeowners and property owners to ensure that appropriate permits are obtained for all roofing projects, regardless of the jurisdiction's size.

Navigating Employment Classification: W2 vs. 1099

As you grow your roofing contractor business, it's crucial to learn the differences between W2 and 1099 employment classifications in order to properly employ and pay employees. Understanding the legal distinctions between these classifications is essential to avoid misclassification and comply with relevant regulations:

1099-NEC 

• Used for non-employee workers, like independent contractors.

• Documents total compensation paid during the tax year (typically over $600).

• Reflects any federal, state, and local taxes withheld (usually none).

• Filed for workers paid at least $600 for services without tax withholding under an employment arrangement.  

• No direct control by the employer over training or safety protocols.

• Contractors may feel less integrated, focusing solely on task completion without a deeper connection to team culture.

W-2 

• Employed for workers classified as part-time or full-time employees.

• Records compensation, benefits, and taxes withheld for the tax year.

• Required for all employees paid at least $600, regardless of tax withholding.

• Essential for documenting income and tax obligations for employees throughout the tax year. 

• Employers have control over work methods, including training and safety practices.

• W-2 employees are integral to the company culture, fostering a sense of belonging and teamwork.

While hiring internal employees offers certain benefits, such as control over work schedules and methods, contracting with gig workers or independent contractors can provide flexibility and cost savings. You may even want to start with an apprenticeship and expand your team as you grow. It all depends on what your business needs to efficiently provide high-quality, trustworthy roofing services.

It is also crucial to keep active Colorado Workers Compensation Coverage and insurance coverage with general liability protection of at least $500,000.00, when employing workers. See our detailed list of membership requirements for licensing and insurance recommendations.

Why Choose the Colorado Roofing Association?

As a CRA member, you'll gain access to valuable resources, networking opportunities, and industry insights to help you succeed in the competitive roofing market. Our association welcomes contractors, suppliers, manufacturers, and other industry professionals committed to upholding the highest standards of professionalism and integrity.

In addition to being an excellent resource for Colorado roofing contractors, the CRA also provides education to homeowners, empowering them to make informed decisions about replacing and maintaining their roof systems. This includes a comprehensive member directory to aid in finding a reputable contractor. As a CRA member, you’ll be included in our database and easily discovered by new clients looking for quality roofing services.

How to Join the CRA

Joining the Colorado Roofing Association is a straightforward process. To become a member, experienced Colorado roofing contractors must meet specific requirements and adhere to our code of ethics. These requirements include holding a valid roofing contractor license, maintaining appropriate insurance coverage, and demonstrating a commitment to quality and customer satisfaction. By becoming a CRA member, you'll join a community of dedicated professionals dedicated to advancing the roofing industry in Colorado. 

By understanding the role of a roofing contractor, navigating licensing and training requirements, and exploring employment classification options, you can set yourself up for success in the roofing industry. Joining the Colorado Roofing Association provides additional support and resources to help you thrive in your roofing contracting career. Take a look at our membership requirements and apply today!