{"id":1061,"date":"2020-12-10T12:53:37","date_gmt":"2020-12-10T12:53:37","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1061"},"modified":"2021-02-26T17:57:58","modified_gmt":"2021-02-26T04:57:58","slug":"how-to-start-a-carpentry-business-in-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-carpentry-business-in-new-zealand\/","title":{"rendered":"How to Start a Carpentry Business"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">If you have finished your apprenticeship and are looking to start your own carpentry business in New Zealand, this may be a good time to do it, given the construction industry\u2019s continued growth and increased demand for carpenters. However, before you start running your business, you should consider creating a business plan to help you make decisions like:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">how to operate your business;\u00a0<\/span><\/li><li><span style=\"font-weight: 400\">should you enter into a <a href=\"https:\/\/legalvision.co.nz\/property-and-leasing\/what-are-the-legal-elements-of-a-retail-or-commercial-lease-in-nz\/\">commercial lease<\/a>; and\u00a0<\/span><\/li><li><span style=\"font-weight: 400\">whether you should engage business partners and employees.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">This article explains how to start a carpentry business in New Zealand and how to negotiate your business contracts and commercial lease.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Getting Your Qualifications and Licences&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">To start your own carpentry business in New Zealand, you have to <a href=\"https:\/\/www.mbie.govt.nz\/\">obtain a licence from the Ministry of Business Innovation and Employment<\/a> (MBIE). Doing this will allow you to work across a broader range of building tasks without supervision.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">To become a licensed carpenter, you will need to get a National Certificate in Carpentry (Level 4) or an equivalent one. In addition to this, you will need specific qualifications and licences to work in specialised building areas, such as roofing and brick and block-laying.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If your carpentry qualification is not from New Zealand, you can get it assessed by the Qualifications Recognition Services at the New Zealand Qualifications Authority (NZQA) to ensure it aligns with the New Zealand Qualifications Framework (NZQF).<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Choosing a Structure<\/span> for Your Carpentry Business<\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">There are different ways to structure your business in New Zealand. Carpenters looking to go out on their own after finishing their apprenticeship, often start as <a href=\"https:\/\/legalvision.co.nz\/business-structures\/operate-business-as-sole-trader-new-zealand\/\">sole traders<\/a> or incorporate a company, but you can also set up your business as a partnership or trust.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Operating as a sole trader is easy and inexpensive to set up, and it offers advantages such as deciding how and when to complete your work. <a href=\"https:\/\/legalvision.co.nz\/corporations\/limited-vs-unlimited-company\/\">Incorporating a company<\/a> is slightly more involved and expensive to set up. Nevertheless, it has many financial advantages, such as:\u00a0<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">limited liability;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">lower tax rate; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">easier access to funds.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">In New Zealand, it is common for carpenters to start as sole traders and switch to a company structure later down the track. In this article, we compare these two structures in more detail.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Once you have decided on your business structure, you will need to <a href=\"https:\/\/www.nzbn.govt.nz\/get-an-nzbn\/\">apply for a New Zealand Business Number<\/a> (NZBN). If you choose to operate your carpentry business as a company, you\u2019ll also need to <a href=\"https:\/\/www.companiesoffice.govt.nz\/\">register the company with the New Zealand Companies Office<\/a>.<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n 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aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2452_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2452_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2452_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2452_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label 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When you run a carpentry business, some of the main types of insurance to consider include:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">public liability;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">home building compensation;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">tools insurance;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">income protection; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">contract works insurance.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">An insurance broker can help you get appropriate coverage for your business, and save on costs by recommending the most competitive providers and policies.<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">When you work as a sole trader or contractor, you are covered by ACC. Your ACC levies are based on the type of work you do and how much money you make. However, you can control how much you pay in levies by deciding what percentage of your income you want to be covered for.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Drafting Your Business Contracts<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Your Contracts With Clients&nbsp;&nbsp;&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">When you work as a carpenter, each new project you take can be quite different from the rest. From building a deck to fixing a staircase, there is a long list of terms and conditions (T&amp;C\u2019s) to account for in your contracts with clients.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">For example, a common scenario is the price of materials increasing before you complete your project. If you do not include a term in your contract to account for this, you will have to pay for this additional expense, instead of your client.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Therefore, you have the option to include a comprehensive set of terms and conditions in your contract to cover you for most scenarios you can foresee or to tailor your T&amp;C\u2019s to the specific project. You should always include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">quote;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">price;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">time;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">defects;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">access to the property; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">warranties.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">You can have a go at drafting the initial contract. However, it is a good idea to have this draft reviewed by your contract lawyer to ensure you have covered all your business needs and any circumstances specific to your business.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Your Employment Contracts&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">When you draft your employment contracts, you should ask yourself the following questions:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">do you want your employees to have some freedom;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how do you want to structure your business; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">whether you want to control how your employees perform their duties.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Ultimately, you want to create a structure that allows your employees to know what they are required to do, and who to answer to within the business.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">You can write your employment contracts, but you should never copy the ones from other businesses. If you decide to write them yourself, you should ask your lawyer to review them to ensure there are no gaps or errors.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Entering Into a Commercial Lease&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When you start your own carpentry business, you may consider entering into a commercial lease. Entering into a commercial lease can bring stability for your business by allowing you to feel confident that your business premises will remain in your hands for the foreseeable future.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The two most important aspects of a commercial lease for your carpentry business are:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the price of the lease; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the length of the lease.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">However, before you consider entering into a commercial lease, you should create a thorough business plan. This will give you an insight into how much:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">money you are willing to spend on commercial property; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">time you would like to lease the property for.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">In this article, we offer some tips to create a thorough plan for your new business.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Final Considerations<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">There is also a list of essential things to do when you start a business in New Zealand, including:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">creating a business plan to help you validate your business idea;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">signing up with your local Regional Business Partner Network to access free resources to help you start and grow your business;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">conducting a thorough check before settling on a name for your business;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">protecting your name and brand by registering your trade mark with IPONZ;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">getting an IRD number for your business; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">researching whether you need to comply with other industry-specific regulations.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">We discuss more details in this article.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">From obtaining your carpentry licence to drafting sound contracts with your clients and employees, there are several key considerations when starting a carpentry business in New Zealand. These include:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">if you want to work without supervision, you need to obtain a licence through the MBIE;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">you can start as a sole trader and then switch to a company structure if you wish to grow your business;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">there are various types of insurance you should consider to ensure that your business has enough coverage;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">you can draft your own contracts, but it is a good idea to get these reviewed by your lawyer;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">you should never copy the contracts of another business, as you could face liability and claims of copyright infringement; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">before you consider entering into a commercial lease, you should create a thorough business plan.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help with getting your carpentry business set up, reviewing your contracts or drafting your commercial lease, contact <a href=\"https:\/\/legalvision.co.nz\/business-lawyers-lp-new-zealand\">LegalVision\u2019s business lawyers<\/a> on 0800 005 570 or fill out the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1606880228344\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How do I start my own real estate agency in NZ?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">To start a real estate agency in NZ you need to get a real estate license, choose a business structure, get business insurance and understand your legal requirements.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How do I get a real estate agent licence in NZ?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">In New Zealand, you cannot start a real estate agency as an unlicensed person. You can apply for a salesperson, brand manager or agent&#8217;s licence. To apply for any class of real estate licence, you need first to get a property degree.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What is sole agency agreement?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A sole agency agreement is a written agency agreement with the buyer of the property. It generally sets out that you will be the only agent with the right to sell the buyer\u2019s property.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606989773267\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What is the difference between a buyer&#8217;s agent and a seller&#8217;s agent?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">The main difference between a buyer&#8217;s agent and seller&#8217;s agent is that they represent clients on either side of a transaction. As a buyer&#8217;s agent, you are representing the buyer\u2019s interests and vice versa.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1061\" \/>            <input value=\"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-carpentry-business-in-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How to Start a Carpentry Business\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you have finished your apprenticeship and are looking to start your own carpentry business in New Zealand, this may be a good time to do it, given the construction industry\u2019s continued growth and increased demand for carpenters. However, before you start running your business, you should consider creating a business plan to help you<a href=\"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-carpentry-business-in-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;How to Start a Carpentry Business&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13217,"featured_media":40,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[10],"tags":[24,25,62,129],"class_list":["post-1061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startups","tag-startup","tag-small-business","tag-business-structure","tag-carpentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Start a Carpentry Business | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"Looking to start a carpentry business in New Zealand? Read this guide for some tips on how to set up and protect your business.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-carpentry-business-in-new-zealand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Start a Carpentry Business | LegalVision New Zealand\" \/>\n<meta property=\"og:description\" content=\"Looking to start a carpentry business in New Zealand? 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