How to Get a License for Your Construction Company

By: EVYATAR SAGIE

Being in construction can be profitable, but you’ll need to comply with all the regulations to work legally in your state, including holding the right permits and licenses.

If you’re working in construction, there are a few different licenses that you might need to obtain. Different states classify construction work slightly differently, so you might find that what you do is considered carpentry in one state, but general construction work in another. To get more work and avoid fines, you’ll need to check the general contractor licensing requirements for your state. Here's what you need to know about how to get the different licenses to run your construction company effectively.

When Do You Need a General Contractor License?

Most states in the U.S. require contractors to have a general contractor's license to work legally. Others don’t require any license, no matter what type of work you do. You only need to register with the State Contractors’ Board or the local Department of Labor.

In many states, there are a few different types of general contractors’ license. Sometimes the license you need depends on the value of the job that you’ll be doing. For example, in Arkansas, you need a license for any jobs worth over $2,000, a Residential Remodeler Limited License for work up to $50,000, and a Commercial License for all jobs over $50,000. In Mississippi and Alaska, you’ll only need a license for jobs with a value of more than $50,000, but in California, you need a license for any job worth over $500.

In other states, the license you need depends on whether you are working on residential or commercial buildings, or other types of projects. Some states require licenses for residential work only, or only for remodeling and renovations but not for new build work. For example, Minnesota requires a license for residential building and remodeling jobs, but not for commercial contractor jobs.

How Do You Get a General Contractor License?

Each state has different requirements for getting a license. We can’t tell you what you’ll need to get a general contractor’s license in every state, but you can check the requirements for your state in this useful state by state guide to getting a general contractor license. Here’s a brief list of what you can expect for your general contractors’ license:

> Proof of work experience, anything from 2-7 years

> Pass a trade exam, or a business and law exam, or both

> You might need proof of education, which can sometimes replace some years of work experience

> Proof of financial stability, and/or a financial bond

> Proof of general liability insurance, especially for licenses that allow you to work at the largest and most lucrative jobs

Most states issues their general contractors’ license through either the State Contractors’ Board or the Department for Labor, so those should be your first inquiries. It’s also important to check your local county or municipal boards for local licensing requirements.

Read More >> https://www.business.com/articles/construction-business-licenses-permits/