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To become a licensed contractor, one must meet minimum qualifications, register their business, and pass a written exam. Each state has its own rules and requirements, and unlicensed contractors may face fines and lose the right to sue for poor workmanship. Proof of financial resources, letters of reference, and proof of experience or related education are required. The exam covers all skilled trades, and those who want to become general contractors may need to take more than one exam.
Each state has its own rules and requirements if you want to become a licensed contractor; someone who passed the state exam for all contractors. If you move to another state, expect to take the state exam to become a licensed contractor, regardless of your status in the previous state.
An unlicensed contractor who has accepted more than the nominal work can receive a fine. He may also find that they cannot sue for non-payment of a building contract. Most clients do not hire unlicensed contractors as they are not protected under state law and lose the right to sue for poor workmanship.
There are three steps to becoming a licensed contractor: meeting the minimum qualifications, registering your company, and passing the written exam. There are certain minimum requirements before you are eligible to become a licensed contractor. While requirements vary by state, there are several items that are consistently required by all states.
All applicants must be at least 18 years of age with a high school diploma or equivalent. They must be United States citizens or have lawful residency status. Applicants must have legally registered their business and may be required to provide proof of financial resources to operate a business. Letters of reference and proof of experience or related education are also required.
To register your business, you must submit a business license form to your state’s business office. They will require your business name, primary business address, types of services provided, and owner information. There is a fee associated with registering a business. Many states require all contractors to pay a state license bond. In addition, a licensed contract must have proof of liability and workers’ compensation coverage.
The licensed contractor exam is usually a multiple-choice test. The test varies in length by state, but varies between one and two hours. The purpose of the exam is to ensure that all contractors have a minimum level of business and business knowledge.
The exam itself has a wide range of specialties designed to cover all skilled trades. Select the area you will focus your business on and take this exam. People who will become general hires may be required to take more than one exam. A common example is a licensed plumber who is going to start a general contractor business. They will need a plumbers license and a general contractors license. However, this is only necessary if they are planning to compete for work.
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