What Can You Do With General Contractor License
Working as a general contractor can be a rewarding career for those looking to exist their own boss, but it likewise comes with several risks, which is why many states require you to run into sure criteria before working. This might include obtaining licenses and/or registering with the advisable regime as well as taking steps to protect your business with the right contractor insurance.
In many cases, Workers' Compensation coverage is required if you take employees, or, if you have subcontractors who your state would allocate as employees. In some cases, fifty-fifty if you utilise independent contractors you could yet exist required to carry Workers' Comp coverage. Many states also require General Liability Insurance and/or a Surety Bond to protect both contractors and consumers.
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The distinction between licensing and registration requirements tin be disruptive — but it's a lot like the license and registration requirements yous need to have for your car or your work truck.
The licensing procedure usually requires passing a examination to ensure a minimum level of competency while the registration process is only a listing in a state registry. Keep in mind, information technology'south also mutual for states to require proof of relevant work experience or financial records.
It should go without saying that making sure you comply with your state'due south standards is critical to the future success of your business. Not doing so could state you in hot water with the authorities. Keep in listen, if y'all work in multiple states you may need to come across unlike piece of work requirements.
Keep reading to learn more almost the country-by-land requirements to obtain a general contractor license.
General Contractor License requirements by state
Alabama
State license: Yeah ; Registration: Yes
It is a requirement for General Contractors in Alabama to obtain a state license for maintenance, repair, sabotage, structure, or alteration projects that exceed $l,000 for commercial projects. For residential projects, you lot need a license if the costs exceed $10,000. In addition:
- Licensing candidates must pass business concern, trade, and law exams.
- Proof of manufacture experience and internet worth upon awarding.
- Proof of General Liability insurance.
Alaska
State license: Yes ; Registration: Yes
At that place are iii kinds of licenses awarded by the country of Alaska:
- General Contractor with Residential Contractor Endorsement: The contractor manages new home construction or undertakes residential projects college than 25% of the value of the structure.
- General Contractor without Residential Contractor Endorsement: The general contractor may undertake work worth less than 25% of what the structure is valued at both for commercial or residential work. No test needed to be passed for this license.
- General Contractor Handyman: The contractor should be qualified to perform residential or commercial work that is assessed at less than $ten,000.
Furthermore, license applicants need to have a 16-60 minutes cold climate form, pass an test, and must obtain Full general Liability and Workers Bounty insurance.
Arizona
State license: Yes ; Registration: Yes
All full general contractors must have a general contractor license.Arizona awards several classifications of licenses, such as:
- General Commercial Contractors
- General Residential Contractors
- General Dual License Contracting: A combination of residential and commercial contracting
To go whatsoever of the licenses mentioned above, yous need to pass merchandise, business, and direction exams, provide proof of at least 4 years of professional experience, and exist covered with a Surety Bond.
Arkansas
Country license: Yes ; Registration: Yes
General Contractors working in the land of Arkansas are required to take a contractor license issued by the state if the projection exceeds $2,000. There are several classifications issued by the Contractors Licensing Board:
- Commercial License: Projects which are worth more than $50,000
- Restricted Commercial License: Commercial projects up to $750,000
- Residential Builders License: Single-family residences worth more than $2,500
- Residential Remodeler Limited License: Dwelling house improvement piece of work worth less than $fifty,000 per project
- Residential Remodeler Unlimited License: No restrictions on size or cost
Furthermore, proof of relevant piece of work feel is needed:
- Commercial contractors: 5 years minimum
- Residential builders: four years minimum
- Residential remodelers: 2 years minimum
Additionally, licensing applicants must provide financial statements, pass trade, business organisation and law exams, and provide proof of Workers Compensation coverage and proof of Surety Bond.
California
Country license: Yes ; Registration: Aye
General Contractors in the country of California are required to obtain a license for projects worth more than $500 from the California Contractors State License Board. You'll demand:
- Proof of at least four years of professional feel completed inside the past 10 years.
- Laissez passer merchandise, business, and law exams.
- Provide proof of Surety Bond and General Liability insurance
Colorado
State license: No ; Registration: Check with Urban center and Canton Government
General contractors are non required to obtain a license to work in Colorado, only in that location may be local registration or licensing requirements.
Connecticut
State license: No ; Registration: Check with Metropolis and County Authorities
General Contractors practice non need a license to work in the state. Notwithstanding, if you work on home comeback projects, you are considered as a habitation improvement contractor (HIC) and will demand to register with the country'southward Section of Consumer Protection.
Delaware
State license: No ; Registration: Check with Urban center and County Authorities
General contractors do not demand a license to piece of work in the state; nevertheless, you might need to register your business organization at a local level.
Florida
State license: Yep ; Registration: Yes
There are several classifications of licenses within Florida, including:
- General Contractor: At least 1 year of experience in construction work on buildings less than four stories high
- Building Contractor: Limited to the construction, remodeling, repair, or comeback of residential or commercial buildings that practice non exceed 3 stories in tiptop.
- Residential Contractor: Express to piece of work on residences that do not exceed ii stories in height.
To obtain any of these licenses, applicants also need:
- To pass trade, business organisation, and law exams.
- At least iv years of proof of relevant work experience. If the applicant does not take enough experience, it is possible to show a combination of feel and pedagogy.
- To provide a financial argument as well as proof of General Liability and Workers Bounty insurance.
Georgia
State license: Yeah ; Registration: Yes
To obtain a license in the state of Georgia:
- Must exist at least 21 years former
- Have a 4-year degree in a relevant field, or, a combination of relevant piece of work experience and pedagogy.
- Must show financial statements and proof of insurance
- Pass trade, business concern, and law exams.
Hawaii
State license: Aye ; Registration: Yeah
If you plan on doing residential, commercial, or public works projects amounting to $one,000 or more, or projects that require a building permit you need to obtain a license. Hither are some requirements yous need to:
- Show proof of insurance, including Workers Comp if y'all have employees
- Pass concern, law, and trade exams.
Idaho
State license: No ; Registration: Aye
There is no land licensing requirement in Idaho, simply if you plan on doing work worth more than $2,000, you must be registered in the state via the Idaho Contractors Board.
Illinois
Country license: No ; Registration: Check with Metropolis and Canton Regime
A full general contractor tin work in Illinois without the demand for a land license. However, in that location may be licensing requirements present in the local or county level, and then be sure to check your local government before you start accepting contracts.
Indiana
State license: Cheque with City and County Government ; Registration: Check with City and County Government
You're non required to conduct a state license, however, there may be license and registration requirements at the local level.
Iowa
Land license: No ; Registration: Check with City and County Government
General Contractors tin can work in Iowa without a license, yet, any full general contractor who earns at least $ii,000 annually is required to register with the state'southward Partition of Labor.
Kansas
Country license: Cheque with City and Canton Government ; Registration: Check with Metropolis and County Government
A state license is not required for general contractors, but local municipalities may take licensing requirements. Make certain you bank check with authorities in your local jurisdiction before you lot start work.
Kentucky
State license: Check with City and Canton Government ; Registration: Check with City and Canton Government
While no state license is required, you should bank check with the appropriate authorities at the local level.
Louisiana
Country license: Yes ; Registration: Yes
General Contractors are required to have a license to piece of work in Louisiana. The state awards 2 different types to consider:
Residential License:
This license is meant for general contractors in construction and home remodeling projects that are worth more than $75,000. In order to obtain this license you'll need to:
- Provide financial statements
- Show proof of insurance, like General Liability and Workers Compensation
- Pass trade, concern and law exams
Commercial License:
This license covers commercial projects costing more than than $50,000. In order to obtain this license you lot need to:
- Submit financial statements
- Pass trade, business organization and law exams
Maine
State license: Check with Metropolis and County Government ; Registration: Check with City and Canton Government
General Contractors don't demand to take a license to work in the state of Maine, but if you have home improvement or home construction projects worth more $3,000, you need a written contract. In that location may be licensing requirements at the city or county level so make sure to check earlier you outset working.
Maryland
State license: Yep ; Registration: Yeah
In Maryland, license applications are approved by the Home Improvement Commission. You'll need to provide the post-obit information:
- Proof of at least 2 years of experience in construction, home improvement, or related industry
- Financial statements
- Present proof of insurance, including General Liability and Workers Compensation
- Pass merchandise, business organization, and law exams.
Massachusetts
State license: Yes ; Registration: Yes
You'll need a license from the country if you program to work as a contractor in Massachusetts. Some requirements you lot need to run into include:
- Proof of Home Improvement Contractor (HIC) registration to perform basic full general contractor tasks on existing backdrop.
- For bigger projects on awaiting properties, yous demand to hold a Structure Supervisor License.
- Testify at least three years of experience in construction and design
- Pass an exam.
Contractors who work exclusively on new homes or on commercial buildings are exempt from getting a license.
Michigan
State license: Yes ; Registration: Yes
General contractors in Michigan need to obtain a Residential Builders License or a Maintenance & Alterations Contractors License in order to work on projects that include repair, construction, alterations, or upgrades residential buildings or mixed-utilise buildings.
Yous need to encounter the following requirements:
- Take a sixty-hr licensure course, and laissez passer an test.
Commercial contractors, on the other manus, should contact local county structure offices for licenses and permits.
Minnesota
State license: Yes ; Registration: Aye
Full general contractors in the country of Minnesota need to be licensed and registered with the state. Residential contractors or remodelers, still, need to obtain a license merely don't demand to be registered at a state level.
In order to obtain a license you are required to:
- Show proof of insurance General Liability and Workers Compensation
- Pass trade, business organisation and police force exams
See how much you lot could exist saving, with all-time in course insurance partners. Start your application and get a gratis quote in minutes or telephone call call (646) 844-9933 anytime.
Mississippi
State license: Yes ; Registration: Yes
Whether you are a residential or commercial contractor, if your projects exceed $50,000 yous are required by the land to concord a license. You also need to:
- Prove proof of insurance like General Liability and Workers Bounty, if you have employees
- Pass trade, concern, and law exams
Missouri
State license: Check with City and Canton Government ; Registration: Check with City and County Regime
General Contractors aren't required to hold a license, but at that place may be a requirement at the city or county level. Check with local authorities before accepting contracts.
Montana
Land license: No ; Registration: Yes
Licensing is not required in Montana, simply if yous have employees, you are required to register at the Section of Labor and Industry and provide proof of Workers Compensation insurance.
Nebraska
State license: No ; Registration: Aye
General Contractors don't need a country license to work in the state of Nebraska, however, if you lot do any construction, alteration, renovations, installations, additions, or repairs, yous are required to annals with the land's Department of Labor.
Nevada
State license: Yeah ; Registration: Yes
Any business or individual who constructs or alters any building, road, highway, parking facility, railroad, or any other structure is required to maintain a state license.
In order to obtain a license yous are required to:
- Bear witness proof of insurance
- Show proof of a Surety Bond
- Provide financial statements
- Testify proof of 4 years of piece of work experience within the last 10 years in a related field.
- Pass trade, business, and law exams
New Hampshire
State license: No ; Registration: No
At that place are no licensing requirements for general contractors in the state. Cheque your local jurisdiction for whatever additional requirements.
New Jersey
Land license: No ; Registration: Yes
You are not required to obtain a license past the state, but, if you piece of work on building, improving, or repairing homes you need to register with the New Jersey Division of Consumer Affairs.
New United mexican states
State license: Yes ; Registration: Yes
General contractors are required by the state to become a license. There are several classifications of licenses awarded by the New Mexico Department of Regulation and Licensing. Make sure to apply for the 1 that all-time suits your occupation. In well-nigh cases, in order to obtain your license you will be required to:
- Nowadays proof of at to the lowest degree 4 years of experience. You can substitute 2 years of education for work experience
- Laissez passer law, trade, and business exams
- Bear witness proof of insurance
New York
State license: Check with Urban center and County Government ; Registration: Bank check with Urban center and County Regime
General Contractors aren't required to hold a country license in the land of New York, only at that place may be local governments with their ain licensing requirements. Be sure of what they are before y'all starting time working.
N Carolina
Country license: Yes ; Registration: Yes
Full general Contractors are required to have a state license to piece of work if the projects exceed $thirty,000 in worth. At that place are many classifications of licenses such equally:
- Building contractors
- Residential contractors
- Highway contractors
- Public utility contractors
- Special contractors
These classifications are further divided into express and unlimited sections and these depend on the scope of the piece of work that you lot plan to do:
- Express: projects worth less than $500,000
- Intermediate: projects worth less than $1,000,000
- Unlimited
Keep in mind, no matter what license you utilize for y'all volition need to pass trade, license, and lath exams.
North Dakota
Land license: Yes ; Registration: Aye
All contractors are required to obtain a country license if the project exceeds $four,000. There are four classes of licenses depending on the value of the project:
- Class A: project exceeds $500,000
- Class B: projection is less than $500,000
- Course C: project is less than $300,000
- Class D: project is less than $100,000
In improver, no matter what license you apply for, you demand to prove proof of insurance.
Ohio
State license: Bank check with city and canton government ; Registration: Bank check with city and county regime
In Ohio, licensing and registration is done at the local level, so make sure you check with the urban center or canton where you lot are planning to piece of work as a contractor.
Oklahoma
State license: Check with city and county government ; Registration: Check with city and county authorities
General Contractors do not need to be licensed or registered at a state level to work in Oklahoma. However, you should bank check your local government's licensing and registration requirements before you start any project.
Oregon
State license: Yes ; Registration: Yes
The state of Oregon defines contractors as people who are paid to exercise construction work that involves the comeback of real property.
You can apply for a commercial license, residential license, or a commercial and residential (dual) license. In gild to apply in any of these categories you will exist required to:
- Evidence proof of insurance
- Take a pre-license training course and pass the test.
- If the project exceeds $100,000, you will have to file for a Public Works Bail of $30,000 with the Construction Contractors Board (CCB). The bond needs to be filed before work starts.
Pennsylvania
Country license: No ; Registration: Yeah
General Contractors practice non need to be licensed at a state level, simply if the value of your annual dwelling house comeback projects exceeds $five,000 you'll need to annals with the state's Chaser General's Function.
The requirements depend on the city you operate in. Cheque the requirements of your local government before you start working.
Rhode Island
Land license: No ; Registration: Yeah
Getting a license in Rhode Island is non required, merely you do need to go through a registration process. Every contractor and subcontractor involved in commercial construction, home construction, remodeling, or repairs must register with the Registration and Licensing Lath. In social club to consummate your registration, you will demand to:
- Consummate 5 hours of training courses
- Evidence proof of General Liability with coverage of at least $500,000
- Evidence proof of Workers Compensation if you lot take employees
Due south Carolina
State license: Yes ; Registration: Aye
A state license is required if you are working on projects worth more than than $5,000. The South Carolina Section of Labor, Licensing and Regulation issues 2 master types of licenses depending on the type of piece of work y'all want to perform:
- General Contractors License.
- Mechanical Contractors License.
In order to utilize for your license yous are required to:
- Present an audited financial statement, or you tin besides submit a Surety Bond instead.
- Evidence proof of at to the lowest degree 2 years of feel in a related field within the terminal 5 years.
- Pass trade, business organization, and police exams.
South Dakota
Land license: Check with city and county government ; Registration: Check with city and county government
You don't demand to be licensed at the state level, merely local governments may have licensing requirements.
Tennessee
State license: Yes ; Registration: Yes
You are required to concur a license before negotiating or bidding for projects amounting to more than $25,000. This applies to any contractor who performs installation, construction, or repair of buildings, highways, country, public utilities, etc.
- Show proof of at to the lowest degree 3 years of relevant work experience
- Audited financial statements
- Laissez passer business, merchandise, and law exams
Texas
State license: Check with metropolis and county government ; Registration: Check with city and county government
Texas does not require full general contractors to obtain a license. Withal, there may exist licensing requirements at the local level, so do cheque with your urban center or county before y'all start accepting contracts. Keep in mind, if you contracting work involves plumbing, electrical, or HVAC piece of work you lot'll need a state license.
Utah
Land license: Yes ; Registration: Yes
A license is required if you do whatever full general contracting piece of work exceeding $three,000. The General Building Contractor License (B-100 license) is issued past the Utah Partitioning of Occupational and Professional Licensing. Y'all'll need to meet the post-obit requirements:
- Show proof of insurance
- Provide financial statements
- At least 2 years relevant work feel inside the final 10 years
- Pass business, trade, and law exams
Vermont
State license: Check with city and canton government ; Registration: Check with urban center and county government
While you don't need a country license you should always check with local authorities to make sure yous're meeting their requirements.
Virginia
Land license: Aye ; Registration: Yes
Full general Contractors are required to obtain a license awarded past the Section of Professional and Occupational Regulations. There are 3 classes of license you can choose from depending on the telescopic of work you plan to practise:
- Class A: Individual projects ranging from $10,000 to $150,000 annually. A minimum of 2 years of experience is required.
- Grade B: Individual projects ranging from $120,000 to $750,000 a yr. A minimum of 3 years of experience is required.
- Course C/Unlimited: A minimum of 5 years of feel is required, and you'll need to consummate a pre-license teaching form approved by the Board of Contractors and pass the exams.
Washington
State license: No ; Registration: Yes
While at that place aren't any land licensing requirements in Washington, you'll need to enroll with the Washington State Department of Labor. To annals you'll need:
- Show proof of a Surety Bond of at least $12,000
- Show proof of insurance
- Pass board, trade, and business exams
W Virginia
Country license: Yeah ; Registration: Yeah
All general contractors are required to obtain a state license if the project exceeds $ii,500. There are several license classifications you lot can apply for depending on the piece of work you do.
You'll be required to:
- Submit proof of insurance or proof of a wage bond
- Pass business and law exams
Wisconsin
State license: Yep ; Registration: Yes
Full general Contractors are required to have a Dwelling Contractor Qualifier license if the project exceeds $1,000. This can be for construction, dwelling house alteration, home improvements, commercial projects, and public projects. Some requirements you lot'll need to run across include:
- Completing a 12-hour class approved past the board and laissez passer the exam
- Show proof of insurance
Wyoming
State license: Cheque with urban center and county government ; Registration: Bank check with city and county authorities
General Contractors are not required to have a country license to piece of work, however, licensing may be done at a city or county level, so make certain you check the requirements of your local jurisdiction earlier accepting projects.
Run across how much you could be saving, with best in class insurance partners. Start your application and get a complimentary quote in minutes or call call (646) 844-9933 someday.
Source: https://www.coverwallet.com/business-tips/general-contractor-license
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