Meeting Basic Requirements
Meeting Basic Requirements
Getting a contractor license involves the completion of several steps that will allow you to legally accept and complete contracting work in your state. The application process for a contractor license includes examinations and supporting paperwork regarding legal residency, criminal background, and experience in the area of work for which you are applying for a license. You must also formally incorporate your contracting company, and purchase any required insurance or bonds in order to practice your trade.
Decide on your license class. In many areas, you must apply for a contractor’s license of a certain class. Usually, the class is determined by the monetary value of projects contractors will undertake. For example, Class C contractors might be limited to working on projects of $10,000 or less, Class B contractors on projects up to $200,000, and Class A contractors may be able to work on projects of any value.
- Fees and insurance requirements may vary by contracting class.
- Working on projects outside of the limits of a contracting class is a violation of regulations. Disciplinary or legal action can result.
- Seek the contracting class that suits the types of project you want to do, as well as your company’s financial and physical abilities.
Choose a specialty, if desired. In many locations, you may be classified either as a “general contractor” or a “specialty contractor.” ] General contractors, as the name implies, oversee many aspects of a project, while specialty contractors focus on a specific area. Common specialties include: