Becoming a Contractor: What Are the Contractor License Requirements?

April 8 2022 - Did you know that you can apply for general contract tasks that pay more than $500 with a contractor license? Starting your own contracting business requires a contractor license too. This license will help you hire subcontractors or market your services.

This license also allows you to bid on a broader range of work that other handypersons might not be able to do.

Are you interested in becoming a licensed contractor? Consider the most common contractor license requirements across different states.

Industry Experience

Most states need you to present proof of experience as one of the licensing requirements. Evidence may include previous employment contracts and certificates.

Gaining relevant experience is essential as it establishes your credibility. But how can first-time contractors get a license? The following are a few of the best options:

Collaborate With an RMO or RME

Partnering with a Responsible Managing Officer or Employee will grant you financial rewards. This partnership means hiring them to use their license to complete and get paid for a job. These RMO/Es will take responsibility for any legalities.

Succeed a Contractor License

Experienced contractors can pass their licenses to a potential successor before retirement. It's ideal for family contractor businesses but not exclusive for family members. You still have to pass the examination to be a candidate for grandfathered licenses.

Waive Proof of Industry Experience

You can have the proof of industry experience waived from your license requirements. The criteria for a waiver varies from state to state, so it’s best to discuss them with your licensing authority.

Build a Company With a Licensed Contractor

Working with a licensed contractor for years is ideal. It will help you with the required amount of experience and aid in the exam.

Get Contractor Experience

You can make the most of your time by gaining experience while preparing for the exam. Note that this process will not be as rewarding money-wise, but the learned skills matter.

Consider Training Course

Before you earn an ICC certification, you can take training courses. Doing so will further your professional skills and knowledge. Enroll in training courses and programs offered by local trade unions and guilds.

Pass Examination

States requiring a license will most likely need you to pass the state contractor exam. These tests may cost you several hundred, so take time to review and prepare for them.

The field experience we advised you of having will be beneficial for the exams. It will most likely cover codes, industry regulations, and business practices. For even better results, consider these materials for your ICC exam prep.

Financial Records

Apart from proof of experience and ICC exam, they may also ask for proof of your financial records. It may include your net worth and general liability insurance.

Submit Your Contractor License Requirements Today

These are the most common contractor license requirements in America. Some of these requirements may apply to some states, and some may not. Inquire from the local licensing board or trade union for specific licensing requirements.

Become a licensed general contractor in no time. Equip yourself with knowledge from our human resource management articles now.

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