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Last edited 10 Dec 2020

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Licensed contractors in the USA

Become a Licensed Contractor in the USA

How to get started:

Complete the licensing application for your state.
Take the state licensing exam (covers legal, business, building codes and other knowledge areas).
Pay mandatory license fees
Post a bond,
Purchase workman’s compensation and liability insurance
Establish minimum working capital.

Why Become a Licensed Contractor?

Given the time and expense involved, individuals might wonder if they need to become a licensed contractor. There are many reasons to become a licensed general contractor or trade contractor:

Competitive edge in marketplace = more clients
Establish credibility instantly
It's the law for projects over a certain minimum cost.
Having insurance and bonding protects you as well as your clients.
You can charge more!

Any client, whether commercial or residential, would want to know they are contracting with a trustworthy firm certified by the state, county or local jurisdiction. Many homeowner's insurance policies require that work be completed by a licensed contractor. Also, more homeowners are becoming smarter shoppers and no that even though it costs more, working with a licensed contractor is much less risky.