How do you become a licensed contractor?
#1
How do you become a licensed contractor?
Okay, aside from spending tousands of dollars on a course for the nxt 2 years or so, is there a quick way to get licensed? I'm not talking about a license mill or anything shady, but really want to know the process. I have an idea for a business and would need to be a contractor to make it work...I'll be retiring from the navy in less than 2 years and, although I'm not too worried about finding work, would really like to "go out, kill something and drag it back to the cave," if you know what I'm saying. I'll have my business degree, too, so it would be good to be able to use that on my own business.
Last edited by stu37d; 06-30-2007 at 10:12 PM.
#5
here you go to the department of consumer affairs and fill out some paperwork pay fines apply for a tax number and show proof of liability insurance and workmans comp ( not needed for a sole proprietor) and you get a license in the mail after they do a backround check and make sure you are decent enough a person to hammer in nails
#6
#7
Well,you need to be a little bit more descriptive as to what you want to do.Laws are different from state to state.And I will give you some examples from the two states that I work in.In Michigan,any time you do work for over $600 you have to be a licensed contractor.So,if all you are going to do is install doors then no you would not have to be licensed.The $600 is per job,not per week.So,you could make a fairly decent living.Here in Texas,if you are not within a city limits,they could care less if you are licensed or not.Heck,they dont even send out inspectors if you are outside the city limits.I know,I have seen some of the shoddiest workmanship you could imagine.
But the first thing you need to check into (in your state) is the requirements for writing a contract.You ALWAYS I repeat ALWAYS want a written contract.Verbal agreements are useless in court.I know,I have been burned so many times,I wont do anything over $100 without a written contract.
Another thing to keep in mind.The size of the job.When you look at a job,decide right then and there if it is a job that you can complete BY Yourself within the time frame that is in the contract.A good friend of mine was almost put out of business because of this.He took on a four man job,and two weeks into the job,his three helpers went on a drinking binge.He called me practically in tears begging me to help him get the job done because it was costing him tons of money for being past the completion date.
But the first thing you need to check into (in your state) is the requirements for writing a contract.You ALWAYS I repeat ALWAYS want a written contract.Verbal agreements are useless in court.I know,I have been burned so many times,I wont do anything over $100 without a written contract.
Another thing to keep in mind.The size of the job.When you look at a job,decide right then and there if it is a job that you can complete BY Yourself within the time frame that is in the contract.A good friend of mine was almost put out of business because of this.He took on a four man job,and two weeks into the job,his three helpers went on a drinking binge.He called me practically in tears begging me to help him get the job done because it was costing him tons of money for being past the completion date.
Last edited by King Triton; 07-01-2007 at 05:18 PM.
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#8
In Tenn you have to pass a contractors exam.You can be a remodeling contractor, o a builder,plumber,or whatever.You have to have commercial liability ins, workman comp & a tax number to pull permits. You should be able to find your states license department online. Bonding is'nt the same as liability ins. Bonding is having backing for the amount of money the job you are doing is worth. I didn't have a contractors license when I was subcontracting. The builders I worked for pulled the permits. I did have commercial ins & workmans comp. I had a tax number too.
#9
Do a google search on VA contractor's license. I looked into it a few years ago. The fees are based on which class of contractor you would be (depends upon volume of money earned) I looked at class C which fee was $90 at the time. You will be hit with a business property tax on tools, equipment and vehicles used. I checked with Patrick County tax people on what would happen if I decided to go out of business would I have to sell all my tools etc to avoid the property tax. Never did get a clear answer except that "most people sell everything" which I wouldn't want to do. I could give you more info but I left my paperwork down in Virginia. I did make a phone call to Richmond and the person I talked to was very helpful and sent out an info packet right away. Good Luck, George
#10
In MT you aren't required to be licensed, however, the state maintains a public black list of bad unlicensed contractors. A simple application, inspection for plumbing and electrical workers, and full insurance coverage for the biggest job you undertake. Workmans comp is required for 10 or more employees.
#11
Originally Posted by King Triton
But the first thing you need to check into (in your state) is the requirements for writing a contract.You ALWAYS I repeat ALWAYS want a written contract.Verbal agreements are useless in court.I know,I have been burned so many times,I wont do anything over $100 without a written contract.
There is also a 3-day "waiting period" for home improvement contracts, which means the customer has 3-days after signing to rescind the contract. This right is unconditional, so even if the contractor has already began the work with the customer's permission, the customer can still cancel within 3 days and tell the contractor to take a hike.
Last edited by Rockledge; 07-01-2007 at 10:26 PM.
#13
I appreciate the info. I started looking online for the VA laws and it turns out I wouldn't need a contractor license as long as the jobs are less than $1000 or $150k/ year. The down side is it looks like a 2 year experience requirement for a 'C' license- $150k-$750k/year. And 3 years for a 'B' and 5 for the 'A' license. I only have a year and a half before I retire, so I could probably knock out most of that requirement before that time. I don't know what constitutes experience, though, full time work or part time? It's probably based on the number of hours logged, like apprenticeship training. Anyway, more questions arise as I learn more about it... Also, of course, are the questions about bonding and permits, yada, yada, yada.
#15
I retired from the Air Force almost two years ago and am taking a Building Construction Technology course. It's a hoot and I think I learn more from the Instructors experience than I do from actual classroom stuff. A couple of the teachers are Contractors and have been in the trade for years. To become a Contractor here in New Mexico, you need two years experience, and a contractor to sign off saying you know what you are doing in addition to the required testing. Different ones for residential or commercial. One of the teachers still runs his own company. It is him, his pickup, and his cell phone. Builds $200-300K houses with relative ease. He has been in it long enough he knows who to sub-contract to, who he can rely on and who he can trust. There are also those mega builders out here who plow out the desert and in no time have more houses packed in a tiny space than you can imagine. Run out of toilet paper? Open your bathroom window, knock on your neighbors bathroom window and ask to borrow a roll. They offer only a few floor plans a few colors and that's it. But, your house is built in about 30 minutes.
I'd love to become a Contractor myself. Not a mega builder. Small scale, focused on what the customer wants.
Rich
I'd love to become a Contractor myself. Not a mega builder. Small scale, focused on what the customer wants.
Rich
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