Becoming a licensed contractor allows those in the construction industry to legally accept and perform projects over a certain dollar threshold (typically $500 in most states). Without a state license, it is illegal for individuals or companies to perform construction activity over this amount and violators are subject to fines and/or possible jail time. Obtaining a state license is a fairly straightforward process. Anyone can apply for a license as it involves little to no financial resources, a lengthy application and an open-book examination. Here are some tips to help facilitate through the process.
Instructions
Obtaining a contractor's license requires time, effort and persistence
1. Find out the licensing requirements for your state. Each state has a unique and independent system for obtaining a contractor's license. You must first contact your state's contractor state license board to verify the specific requirements for your state. Typically this information is available online. Simply visit your state government web site (example would be the state of California's site, which is www.ca.gov). From here, you will want to search for the specific department that deals with business and professional regulation, which for most states is an entire department in itself. The licensing information should be found under this section; if not, you can always conduct a search on the site.
2. Obtain the actual application from the licensing board and complete it. Typically, the application will require you enter previous work experience, personal information, references, etc. A fee is also typically required to be paid to the state for processing the applications (in 2008, the average fee was $400, this sometimes includes the cost of the test, though not always). Applications which are not complete are often rejected so make sure to proofread the application before submitting.
3. Take the contractor's test. This test will ensure you are familiar with building code, business requirements, and safety protocol. Study material is provided by the licensing board and individuals should ensure they are familiar with the material before taking the test. If you fail the test, you are often required to wait a certain duration before retaking (typically 1-2 weeks). Most states do not have a limit of the amount of times you can re-take the exam.
4. Obtain your license number and properly display it. Once your application has been accepted and approved and you passed the contractor's test, you will be assigned a contractor's license number. This license is only valid for a certain duration (usually 1-2 years) and you must follow your state's procedures for renewal to keep the license current. This license should now be listed on all your marketing material and business cards so potential customers have the number for reference.
5. Follow the rules of licensure. Once your license is obtained you must be sure to comply with all rules and regulations of a licensed contractor. When accepting new projects, be sure to validate you are in compliance with the limitations of your license. Refer to the state's licensing body if you have questions with compliance or regulations.
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