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ContractorTabby Other Consultant
Last edited 11 Jan 2014

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.


--ContractorTabby 19:27, 9 May 2013 (BST)

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