Washington State requires all construction contractors to register with L&I. Self-employment taxes are not withheld from the earnings of independent contractors who are required to voluntarily declare and pay estimated earnings taxes to the IRS, which can lead to a trap for contractors who run into financial difficulty and become tempted to put off making the required estimated tax payments.
As you compare the two estimates, keep in mind that common sense dictates that from the roof to the foundation, each construction component’s costs contain general contractor and specialty contractors business costs, which would include their own overhead and profit …